CSI Launches Advanced Check Fraud Detection Tool in Partnership With Mitek Systems
In an era where financial fraud is becoming increasingly sophisticated, community banks are facing mounting pressure to protect their customers and assets. Recognizing this challenge, CSI, a leading provider of end-to-end financial software and technology, has introduced a groundbreaking check fraud detection solution tailored for its NuPoint® customers. This innovative tool, powered by Mitek Systems, equips bank tellers with real-time fraud detection capabilities, enabling them to identify and prevent fraudulent transactions at the teller line. Alternative deposit methods completed through other channels are evaluated collectively overnight, ensuring comprehensive protection across all banking activities.
The rise in check fraud incidents over the past few years has been alarming. According to recent reports, suspicious activity related to check fraud surged by 90% from 2021 to 2023, with no signs of slowing down in 2024. In response, CSI’s new solution leverages advanced technology to combat this growing threat. By integrating Mitek’s expansive consortium of financial institutions—representing millions of consumers—the tool provides unparalleled insights that enhance fraud detection rates and streamline review processes. This collaboration ensures that community banks have access to high-resolution image analysis across 24 scorable check attributes, enabling instant identification of potentially fraudulent transactions.
“Our main goal is to protect our customers,” said Heather Deneault, assistant vice president and deposit operations and branch management officer at Denison State Bank in Northeast Kansas. “By detecting fraud right at the teller line, we can proactively safeguard their assets. We’re leveraging intelligent products like CSI’s check fraud detection solution to enhance our tellers’ vigilance without relying solely on manual reviews.” Deneault emphasized the importance of customizable systems that adapt to customer behaviors and continuously learn about their banking habits. “CSI’s technology helps us scale our fraud detection efforts effectively, ensuring we stay ahead of evolving threats.”
For Steve Sanders, chief risk and information security officer at CSI, the launch of this solution represents a significant milestone in the fight against financial fraud. “As check fraud schemes continue to become more sophisticated and difficult to detect, it is essential to have a solution that delivers fast, consistent protection,” he explained. “CSI’s check fraud detection solution is the first of its kind at the teller line. By leveraging computer vision and AI technology, we can reduce fraud losses and ensure our customers receive the most advanced protection available.”
One of the standout features of the new solution is its ability to continuously learn through consortium sharing. This capability allows the system to predict future changes in fraud patterns, offering protection at various levels of complexity. Analysts can compare multiple check attributes against profiles stored in a secure, cloud-hosted environment. The platform employs end-to-end encryption and adheres to ISO 27001-certified security protocols, delivering a new level of security to community banks. This robust infrastructure ensures that sensitive data remains protected while enabling seamless integration into existing banking systems.
Michael Diamond, senior vice president and general manager at Mitek Systems, expressed enthusiasm about the partnership with CSI. “We’re thrilled to partner with CSI to integrate Mitek’s Check Fraud Defender into their NuPoint solution,” he said. “With our expertise in real-time fraud prevention and consortium-based data sharing, this collaboration enables more banks to detect fraud instantly at the teller line.” Diamond highlighted the broader impact of the partnership, noting that it strengthens in-branch security and empowers financial institutions to stay ahead of evolving threats. “This is a game-changer for community banks that need reliable, scalable solutions to protect their customers and assets.”
The implementation of CSI’s check fraud detection solution marks a pivotal shift in how financial institutions approach fraud prevention. Traditionally, banks have relied heavily on manual reviews and outdated systems to identify suspicious activity. However, these methods are often time-consuming and prone to human error. By contrast, CSI’s solution leverages cutting-edge technology to provide real-time insights, enabling tellers to make informed decisions quickly and accurately. This not only enhances operational efficiency but also improves the overall customer experience by minimizing disruptions caused by false positives or delayed transactions.
Another key advantage of the solution is its adaptability. Unlike static systems that require frequent updates to remain effective, CSI’s tool continuously learns from new data and adjusts its algorithms accordingly. This dynamic approach ensures that the system remains relevant and effective in the face of emerging fraud trends. For example, if a new type of check fraud scheme emerges, the system can quickly incorporate this information into its detection framework, providing immediate protection to banks and their customers.
The partnership between CSI and Mitek Systems underscores the importance of collaboration in addressing complex challenges like financial fraud. By combining CSI’s expertise in financial software with Mitek’s advanced fraud prevention technologies, the two companies have created a solution that is greater than the sum of its parts. This synergy not only benefits community banks but also sets a new standard for fraud detection in the financial industry.
As the threat landscape continues to evolve, financial institutions must adopt proactive measures to protect their customers and assets. CSI’s check fraud detection solution represents a significant step forward in this effort, offering a powerful combination of speed, accuracy, and adaptability. By empowering tellers with real-time insights and leveraging consortium-based data sharing, the solution provides a robust defense against even the most sophisticated fraud schemes.
Looking ahead, the success of this initiative will depend on widespread adoption and ongoing innovation. Community banks that embrace this technology will be better equipped to navigate the challenges of the modern financial landscape, ensuring the safety and trust of their customers. At the same time, continued collaboration between industry leaders like CSI and Mitek Systems will be crucial in driving further advancements in fraud detection and prevention.
In conclusion, the launch of CSI’s check fraud detection solution marks a turning point in the fight against financial fraud. By harnessing the power of AI, computer vision, and consortium-based data sharing, the tool offers unparalleled protection for community banks and their customers. As Heather Deneault aptly put it, “We’re leveraging intelligent products to enhance our tellers’ vigilance without relying solely on manual reviews.” With this innovative solution, CSI and Mitek Systems are setting a new benchmark for fraud prevention, paving the way for a safer and more secure financial future.
Key Takeaways:
- Rising Threat of Check Fraud: Check fraud incidents have surged by 90% from 2021 to 2023, necessitating advanced solutions to combat this growing threat.
- Real-Time Protection: CSI’s check fraud detection solution provides real-time fraud detection at the teller line, reducing reliance on manual reviews and enhancing operational efficiency.
- AI and Consortium Learning: The solution leverages AI, computer vision, and consortium-based data sharing to deliver fast, accurate, and adaptive fraud detection.
- Customizable and Secure: The tool adapts to individual customer behaviors, ensuring scalability and effectiveness while maintaining robust security standards.
- Industry Collaboration: The partnership between CSI and Mitek Systems highlights the importance of collaboration in developing innovative solutions to address complex challenges.
- Future-Proof Technology: Continuous learning and adaptability ensure the solution remains effective against emerging fraud trends, offering long-term value to community banks.
By addressing the needs of both financial institutions and their customers, CSI’s check fraud detection solution represents a transformative advancement in the field of financial security.
