Mitek Adds New Defense for Banks to Combat Rising Check Fraud

Rhea-AI Summary

Mitek (NASDAQ: MITK) has launched check liveness technology, now available through its Check Fraud Defender mobile API. This innovation is designed to combat the rising issue of check fraud, which nearly doubled in 2022, according to the Financial Crimes Enforcement Network. As organizations face increasing fraudulent activities, Mitek's technology provides enhanced detection of counterfeit checks. Financial institutions filed over 680,000 Suspicious Activity Reports in 2022, showcasing a growing challenge in protecting against fraud. Mitek aims to support banks in bolstering their defenses against fraud-related losses. The company's advanced identity verification technologies are trusted by 99% of U.S. banks for mobile transactions.

Positive

• Introduction of check liveness technology enhances the authenticity of checks.
• Check Fraud Defender adds an extra layer of fraud detection.
• Growing demand for fraud prevention solutions as check fraud rises.
• Mitek's technology is trusted by 99% of U.S. banks.

Negative

• Check fraud incidents nearly doubled in 2022, indicating a severe market threat.
• Over 680,000 Suspicious Activity Reports filed, highlighting a significant increase in fraud.

Sophisticated check “liveness” ensures authenticity via mobile API

“What’s fake and what’s real?” That’s a question we are all asking ourselves at the moment, and with good reason. Check fraud is on a dramatic rise. AI has exploded. And fraudsters will always look to take advantage. Fortunately, innovators in machine learning are already using “liveness” technology to ensure authenticity. In this case, that’s the authenticity of a check. Financial institutions that take advantage of these latest advancements will stamp down check fraud and reduce their losses.

SAN DIEGO--(BUSINESS WIRE)-- Mitek (NASDAQ: MITK) today announced that check liveness is available for all customers of its flagship Check Fraud Defender through real-time mobile API. Check liveness is the ability to determine if a check is authentic and not a picture of a picture of a check. Check Fraud Defender detects forgeries and fraudulent activity otherwise missed by traditional fraud detection methods, and now Mitek’s proprietary check liveness technology adds an additional layer of defense.

The rate of check fraud nearly doubled in 2022, according to the Financial Crimes Enforcement Network, part of the U.S. Treasury Department, continuing a dramatic rise in recent years, spurred by economic factors and advances in technology misused by online fraudsters. In 2021, financial institutions filed over 350,000 Suspicious Activity Reports (SARs) to FinCEN to report potential check fraud; in 2022 this number reached over 680,000. Fraud, including check fraud, is the largest source of illicit proceeds in the United States and is one of the anti-money laundering/countering the financing of terrorism (AML/CFT) National Priorities.

Ingo Money Chief Executive Officer Drew Edwards said, “As check fraud continues to increase in the U.S., financial institutions need to make sure the correct safeguards are in place to protect their organizations and individuals. With added signals of counterfeit documents, banks of all sizes can stay ahead of criminals to fortify institutional protocols and drastically reduce fraud-related losses.”

“The sophistication of fraud and synthetic checks has never been more real,” said Michael Diamond, Mitek senior vice president and general manager. “With added signals, banks of all sizes can better identify and defend against fraudulent activities and drastically reduce fraud losses.”

To learn more about Check Fraud Defender and check liveness, visit: https://www.miteksystems.com/check-fraud-defender.

About Mitek

Mitek (NASDAQ: MITK) is a global leader in digital access, founded to bridge the physical and digital worlds. Mitek’s advanced identity verification technologies and global platform make digital access faster and more secure than ever, providing companies new levels of control, deployment ease and operation, while protecting the entire customer journey. Trusted by 99% of U.S. banks for mobile check deposits and 7,500 of the world’s largest organizations, Mitek helps companies reduce risk and meet regulatory requirements. Learn more at www.miteksystems.com. Follow Mitek on LinkedIn, Twitter and YouTube, and read Mitek’s latest blog posts here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230418005883/en/

Media contact

Angela M. Romei

Senior Director, Corporate Communications

pr@miteksystems.com

Source: Mitek

FAQ

What is Mitek's Check Fraud Defender and its new features for 2023?

Mitek's Check Fraud Defender now includes check liveness technology through a mobile API, allowing for better detection of counterfeit checks.

How much did check fraud increase in 2022 according to Mitek?

Check fraud incidents nearly doubled in 2022, with over 680,000 Suspicious Activity Reports filed.

What is the significance of check liveness technology announced by Mitek?

Check liveness technology ensures the authenticity of checks, reducing the risk of check fraud for financial institutions.

Who can benefit from Mitek's check liveness technology?

Financial institutions of all sizes can benefit, as it helps enhance their defenses against rising fraudulent activities.

What are the latest statistics on check fraud in the U.S.?

In 2022, over 680,000 Suspicious Activity Reports related to potential check fraud were filed, indicating a significant rise in incidents.