1 ALL UK CHEQUES TO BE CLEARED WITH DIGITAL IMAGING IN … · 2019. 9. 25. · CHEQUE FRAUD: STAY...
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CHEQUE FRAUD: STAY ONE STEP AHEAD e ALL UK CHEQUES TO BE CLEARED WITH DIGITAL IMAGING IN 2019 After a transition period where both systems run in parallel, paper-based clearing is set to become history in the UK. That’s good news for you and your consumers, thanks to quicker processing times. But the removal of traditional security features could mean an increase in cheque fraud. So, how can your organisation prepare for this new reality? Communisis has a smart fraud-prevention solution, tested and in use today - we call it e-UCN. Since it’s roll-out in October 2018, the Image Clearing System (ICS) has been improving on the existing six weekday timescale, and has provided an opportunity for more robust, secure cheque payments - that is, if done correctly. But without traditional security measures being checked, it will also be easier to manipulate or duplicate these images. Industry experts predict this may result in a dramatic rise in the number of incidents of cheque fraud, especially if volumes rise significantly as all banks move to the new system. Wonder if anyone still regularly use cheques? The answer is - yes; in fact, Almost 400m cheques were written in the UK in 2018. Digital Image Clearing brings us much needed change - but like any period of change, it comes with risks £20.6m - The cost of traditional cheque fraud to the UK banking sector in 2018. WHY MIGHT THE MOVE TO DIGITAL IMAGING INCREASE FRAUD? By the end of 2019, we will see all banks using the new Image Clearing System (ICS). The aim is to offer convenience and speed of transfer for customer funds. There are processing benefits for banks too. 23:59 NEXT-DAY THE LATEST CHEQUES WILL BE CLEARED UNDER THE NEW SYSTEM But cheque truncation - when the paper cheque is digitally scanned - massively increased the incidenc- es in the US of cheques being processed twice, both accidentally and fraudulently. Fraud Magazine has noted that duplicate cheque processing in the US is a “$500 million problem” that represents about half of the country’s total cheque fraud. With the era of digital imaging upon us, banks in the UK know they will experience similar issues unless suitable technology is deployed. 1 86% of businesses and 55% of consumers still use them. THIS IS AN INCREASE OF 109%
Transcript of 1 ALL UK CHEQUES TO BE CLEARED WITH DIGITAL IMAGING IN … · 2019. 9. 25. · CHEQUE FRAUD: STAY...
CHEQUE FRAUD: STAY ONE STEP AHEAD
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ALL UK CHEQUES TO BE CLEAREDWITH DIGITAL IMAGING IN 2019After a transition period where both systems run in parallel, paper-based clearing is set to become history in the UK. That’s good news for you and your consumers, thanks to quicker processing times. But the removal of traditional security features could mean an increase in cheque fraud. So, how can your organisation prepare for this new reality? Communisis has a smart fraud-prevention solution, tested and in use today - we call it e-UCN.
Since it’s roll-out in October 2018, the Image Clearing System (ICS) has been improving on the existing six weekday timescale, and has provided an opportunity for more robust, secure cheque payments - that is, if done correctly.
But without traditional security measures being checked, it will also be easier to manipulate or duplicate these images. Industry experts predict this may result in a dramatic rise in the number of incidents of cheque fraud, especially if volumes rise significantly as all banks move to the new system. Wonder if anyone still regularly use cheques?
The answer is - yes; in fact,
Almost 400m cheques were written in the UK in 2018.
Digital Image Clearing brings us much needed change - but like any period of change, it comes with risks
£20.6m - The cost of traditional cheque fraud to the UK banking sector in 2018.
WHY MIGHT THE MOVE TO DIGITAL IMAGING INCREASE FRAUD?By the end of 2019, we will see all banks using the new Image Clearing System (ICS).
The aim is to offer convenience and speed of transfer for customer funds. There are processing benefits for banks too.
23:59NEXT-DAY
THE LATEST CHEQUES WILL BE CLEARED UNDER THE NEW SYSTEM
But cheque truncation - when the paper cheque is digitally scanned - massively increased the incidenc-es in the US of cheques being processed twice, both accidentally and fraudulently.
Fraud Magazine has noted that duplicate cheque processing in the US is a “$500 million problem” that represents about half of the country’s total cheque fraud.
With the era of digital imaging upon us, banks in the UK know they will experience similar issues unless suitable technology is deployed.
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86% of businesses and 55% of consumers still use them.
THIS IS AN INCREASE OF 109%
CHEQUE FRAUD: STAY ONE STEP AHEAD
A complex algorithm generates this unique number which is then lasered onto the cheque as it is being personalised. It is irreversible, unique to each cheque and can only be decrypted using a ‘decryption key’ built into a bank’s clearing process.
Communisis has been developing its own solution to cheque fraud since 2013 - the result is the unique coded number, or e-UCN.
e-UCN ADVANTAGESFOR YOUR ORGANISATION:
Market-tested solution: proven significant cost-savings thanks to reduced fraud
Image Clearing System - ready today. Future-proof for tomorrow
Requires very little IT resource: low-cost implementation
To learn more about how e-UCN
could protect your organisation,
get in touch today.
Daniel PattenBusiness Development [email protected] watch our video
Once unlocked, the code line must match the unique e-UCN on each cheque - should it fail, the cheque is automatically held for investigation.
Communisis e-UCN is a real-world solution that is fully ICS-ready - in fact, it has been tested and adopted by the UKs biggest banks.
THE COMMUNISIS SOLUTION TO CHEQUE FRAUD
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A unique code is created usinga complex algorithm calculation
The e-UCN is generated and outputas a robust alpha numeric code
The e-UCN is decoded and validatedin the clearing process
Communisis e-UCN is a real-world solution that is fully ICS-ready - in fact, it has been tested and adopted by the UKs biggest banks.
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33The e-UCN is decoded and validatedin the clearing process
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