Mitek Introduces Check Fraud Defender

Rhea-AI Summary

Mitek (NASDAQ: MITK) has launched Check Fraud Defender, an AI-powered, cloud-hosted solution designed to combat check fraud for financial institutions. This innovation is crucial as attempted check fraud reached $15.1 billion in 2018, representing 60% of fraud against deposit accounts. Check Fraud Defender utilizes advanced image science to detect forgeries that traditional tools may miss, helping institutions reduce false positives and optimize fraud detection processes. Early adopters, including one of the top 25 U.S. banks, report up to 90% savings in manual review time.

Positive

• Launch of Check Fraud Defender enhances fraud detection capabilities for financial institutions.
• Addresses a significant market need as check fraud attempts are on the rise, totaling $15.1 billion in 2018.
• Patented technology promises to reduce false positives, lowering operational costs.
• Initial deployment showed up to 90% savings in manual review time for one of the largest U.S. banks.

Negative

• None.

Mitek (NASDAQ: MITK), a global leader in mobile capture and identity verification software solutions, today introduced Check Fraud Defender. This is the first artificial intelligence-powered, cloud-hosted consortium for financial institutions to counteract check fraud. An important addition to a financial institution’s fraud-fighting protocols, Check Fraud Defender helps protect against the growing sophistication of check fraud attacks.

A report by the American Bankers Association shared in January 2020 reveals how much fraud banks defend against each year. According to the report, total attempted check fraud increased to $15.1 billion and accounted for 60% of attempted fraud against deposit accounts. The leading check fraud categories were counterfeit checks, forged signatures, and return deposited items.

Trusted technology uses modern image science

Backed by more than 35 years of expertise in digital image capture, mobile deposit and identity solutions, Mitek’s Check Fraud Defender detects forgeries otherwise missed by traditional tools. The service analyzes checks deposited from all channels – mobile, in-branch and ATMs. With Check Fraud Defender’s patented computer vision technology, financial institutions have a higher degree of confidence in fraud detection.

Check fraud is on the rise, and financial institutions see their existing fraud detection processes generate mountains of false positives. This causes them to hire more and more people to sift through false positives in search of fraud, costing significant time and money.

“With Check Fraud Defender, participating financial institutions will have a powerful new signal that will enable them to reduce fraud losses and false positives,” said Michael Diamond, Mitek SVP and General Manager. “In a world where AI and machine learning yield huge benefits, we have a better way forward.”

Mitek’s latest innovation helps financial institutions continue to stay ahead of the fraudsters. One of the top 25 US financial institutions has already licensed Check Fraud Defender and three more are currently using the underlying technology. One of the largest U.S. banks has already experienced up to a 90% savings in manual review time following its initial deployment.

“Although check issue volumes continue to decline, check fraud continues to be a major challenge for financial institutions in the U.S.,” says Shirley W. Inscoe, Aite Group Senior Analyst. “Automating more check fraud detection and lowering false positives (that require manual reviews) can decrease operational costs as well as fraud losses.”

As seen in Mitek’s recent acquisition of ID R&D, Mitek is constantly innovating to provide a range of mobile capture and identity verification solutions to build trust in the digital world. Check Fraud Defender combines the power of Mitek’s mobile deposit and check imaging products with its SaaS-based delivery and fraud-detection identity verification solutions.

Learn more here about Mitek and Check Fraud Defender.

About Mitek

Mitek (NASDAQ: MITK) is a global leader in mobile capture and digital identity verification built on the latest advancements in computer vision and artificial intelligence. Mitek’s identity verification solutions enable organizations to verify an individual’s identity during digital transactions to reduce risk and meet regulatory requirements, while increasing revenue from digital channels. More than 7,500 organizations use Mitek to enable trust and convenience for mobile check deposit, new account opening and more. Mitek is based in San Diego, Calif., with offices across the U.S. and Europe. Learn more at www.miteksystems.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210629005206/en/

FAQ

What is Check Fraud Defender by Mitek?

Check Fraud Defender is an AI-powered solution launched by Mitek to help financial institutions combat check fraud.

How does Check Fraud Defender help reduce fraud losses?

The solution detects forgeries that traditional tools might miss, helping financial institutions lower false positives and fraud losses.

What impact did Check Fraud Defender have on one U.S. bank's manual review process?

One of the largest U.S. banks reported up to a 90% savings in manual review time after deploying Check Fraud Defender.

What are the statistics on check fraud attempts?

In 2018, attempted check fraud reached $15.1 billion, accounting for 60% of fraud against deposit accounts.

Who can benefit from Check Fraud Defender?

Financial institutions looking to enhance their fraud detection processes can benefit from Check Fraud Defender.