Fraud Prevention & Compliance
Parascript machine learning software helps commercial and retail banking organizations automate complex, costly and error-prone processes intended to combat fraud and support compliance such as Know Your Customer (KYC) and AML initiatives. As banks of all sizes expand their channels of engagement and work to improve customer experiences, the costs of managing comprehensive processes associated with compliance and fraud prevention continue to increase. New gaps in compliance are discovered seemingly every month.
Parascript software provides the automation “behind the scenes” for many solutions already used by banks helping to enable compliance and identify fraud for financial institutions regardless of channel, such as remote deposit, teller, Web, ATM or mobile device. Our software detects counterfeit documents, signature forgery, content alteration, duplicate presentment, CAR/LAR mismatch and payee match discrepancies. Reliable automation is key to mitigate losses, protect assets and improve customer service and loyalty. Parascript automation software for compliance and fraud prevention solutions can be deployed in both front or back office environments and enable financial institutions to provide more comprehensive automation at lower costs than ever.
Benefits of Fraud Prevention
Combats counterfeit through meticulous verification of all major pre-printed elements on business and personal checks and IRDs, including headers, check number, date, payee, dollar amount, dollar sign, memo, payor block and payor field. Complete analysis is performed by a combination of multiple forgery detection algorithms that review content, font type, font size, font spacing, the placement of each item and relative distances between pairs of blocks. As a result, financial institutions immediately identify the slightest variation on a given check or remote deposit.
Parascript solutions provide support for Regulation CC changes that involve indemnification of depository banks from checks that originally were received via remote deposit, including mobile deposit. On July 1, 2018, new Regulation CC changes take effect that places the risk of multiple deposits of the same check on the institution, which accepts the item via Remote Deposit Capture (RDC).
With Parascript technology solutions, banks providing remote deposit services automatically detect and process the restrictive endorsement information necessary to reduce the chance of multiple deposit fraud and remove liability. If the restrictive endorsement is not detected or if it is not consistent with bank requirements, the check can be immediately rejected. Since Parascript technology locates and recognizes both handprinted and machine-printed data, you have the flexibility to select any restrictive endorsement that you want and reduce customer impact.
Helps Fight Fraud Online
Parascript auto-verifies and auto-detects signature discrepancies through online applications to help businesses and organizations fight signature fraud. When used for online verification, it analyzes pressure, speed and tension. The software is highly effective for fraud prevention and is used for workflow automation, document management, and for electronic transactions in banking, financial, health care, retail, government and other sectors.
For applications that require an extra level of protection for checks, Parascript technology supports the core needs of payee match/positive pay by locating and extracting the payee name and verifying it. This is an extra layer of protection since it compares payee information from checks and remote deposits to payee information in the customer-issued file. This further data validation helps to significantly reduce fraud.
How Parascript Verifies Content
Parascript accesses reference signatures and additional account information from the database to process transactions in real-time or batch mode and flag potentially fraudulent items so that financial institutions can easily:
Identify content alteration. Effective in identifying a discrepancy on a check between the amounts entered in numbers (courtesy amount) and the amount written in the print line (legal amount), known as CAR/LAR mismatch. It also alerts for alterations in the MICR line, payee name, check date and check number that may be indicative of fraud.
Prevent duplication. Helps prevent duplicate check presentment by collecting data from the check and enable verification against deposited items.
Validate payee match. Offers an automatic solution that reads both machine printed and handwritten payee data. This is an extra layer of protection since it compares payee information from checks and remote deposits to payee information in the customer-issued file. This further data validation contributes to reduce fraud.