Woman worried about fraud and her bank account

Fraud Prevention

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, ITM, 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.

Strengthen security and build trust with advanced fraud detection

Customers are tired of seeing headlines about security threats to their assets and identity. Choosing Parascript solutions adds an extra layer of protection to your fraud prevention efforts. Our tools provide near real-time alerts and data-driven insights to detect fraud faster to safeguard reputation and increase competitive edge.

Security and Financial Protection 

  • Enhanced Security: Early detection of fraudulent activities helps safeguard bank assets and customer accounts.
  • Reduced Financial Losses: Minimizing the occurrence of check fraud leads to significant cost savings for the bank.
  • Reputation Protection: Effective fraud management preserves the bank’s reputation and brand integrity in a competitive and crowded market.

Compliance and Efficiency

  • Regulatory Compliance: Improved fraud detection tools help ensure adherence to regulatory requirements and standards.
  • Operational Efficiency: Automating fraud detection reduces manual oversight, freeing up resources for other critical tasks.

Faster Analytics

  • Real-Time Alerts: Immediate notifications allow for swift action, preventing potential fraud from escalating.
  • Data-Driven Insights: Advanced tools provide valuable analytics, helping banks identify patterns and trends in fraudulent activity.

Detect multiple types of check alterations used in fraud schemes

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 altered check stock Use of secure, pre-printed checks is an effective layer of protection from check scams. Features such as watermarks, microprinting, and unique serial numbers are common security features, and verifying their presence and authenticity is standard. Investing in hard-to-reproduce check stock is only one part of the fraud prevention equation. Consider the benefits of software that reviews checks for the presence of the features and notifies the processor of concerns. Accuracy and speed is key to fraud detection, and early detection can aid in this process.

Parascript verifies every check received, digital or paper.

Signature Verification By using multiple verifiers, Parascript software evaluates dozens of signature characteristics to differentiate between natural irregularities and true variances that are fraud indicators. It identifies missing signatures and supports business rules such as dual signature requirements for checks and remote deposits above specified amounts. 

Verify signature authenticity on checks and other documents with SignatureXpert.AI

Validate payee and CAR/LAR match Parascript 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. 

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 is another layer of protection. It also alerts for alterations in the MICR line, payee name, check date and check number that may indicate fraud. 

Capture all text on checks, verify automatically, and convert to usable data.

Benefits of Improved Fraud Prevention

Combats Counterfeit Payments

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.

Restrictive Endorsement

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. Regulation CC 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.

Payee Match

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.

Customer Due Diligence for KYC

Parascript’s machine learning software also plays a pivotal role in automating Know Your Customer (KYC) processes, reinforcing compliance measures for financial institutions. Our software excels in detecting counterfeit documents, signature forgery, content alteration, duplicate presentment, CAR/LAR discrepancies, and payee mismatches. This robust automation not only minimizes financial losses and safeguards assets but also enhances customer service and loyalty. Parascript’s flexible automation solutions cater to both front and back-office environments, enabling banks to achieve comprehensive automation at reduced operational costs.

Regulation Compliance

As regulations expand, it falls on the bank to comply but not at the cost of customer experience or the safety of assets. Parascript’s software operates seamlessly in the background, supporting existing bank solutions and enhancing compliance efforts across multiple channels such as remote deposit, teller transactions, web banking, ATMs, and mobile devices.

Parascript Announces CheckwashAlert.AI® 1.0, a Check Washing Analysis Software

Parascript Inc. Announces CheckwashAlert.AI® 1.0, a Check Washing Analysis Software, A Next-Generation Offering in Their Fraud Prevention Solution Suite February 12, 2024 | Longmont, CO – Parascript—a software company delivering high-performing automation for over 25 years, released their newest fraud prevention product, CheckwashAlert.AI 1.0, that detects checks altered by check washing.

Read Article

Check Baking – Checkwashing Goes Digital in This New Check Fraud Scheme

What happens when you mix checkwashing fraud with the image-deposit rules from Check21? You get check baking, also known as check cooking. Gone are the days of chemical alterations and one-off deposits. The scam goes completely digital.

Read Article