MEFX: Softpro presents State of the Art in Fraud Detection and e-Signing

[DUBAI] - 2008-06-01: Fraud Detection and e-Signing specialist Softpro presents its solutions at the leading IT-event for the financial industry in the Gulf region - MEFX in Dubai. The Signature experts will showcase their holistic fraud prevention suite "SignPlus" as well as their next generation signature tablet "SignPad" in booth 110 - along with their newly released and highly innovative end-to-end electronic account opening application.

Checks are still alive and Check Fraud is on the rise

Although the rate of online banking is increasing hundreds of billions of checks are written every year throughout the world. The affinity to checks is not diminishing in the "check countries". The relative importance of checks as a payment instrument is outstandingly high in Singapore (73,3% in 2006), Turkey (66,6% in 2005), the United States (54,7% in 2006), Brazil (40% in 2005) and Canada (35,0% in 2006). Areas with exceptional economic growth such as the Gulf countries or Australia even reported increasing numbers in check usage in recent years.

For financial institutions worldwide, check processing and clearing is a significant cost factor in the payment process. However, reduction in processing costs leads to higher check fraud risk exposure. Check fraud is consistently rising year-over-year and is expected to continue to rise as fraud perpetration using other payment instruments such as credit cards becomes increasingly difficult.

The use of checks as a vehicle for fraudulent transactions is a global phenomena. The figures about check fraud worldwide are impressive. However only a few organizations are publishing figures about fraud cases and money lost due to check fraud.

  • According to the American Banker's Association check fraud accounted for more than $12.2 billion in 2006 (up from 5.5 billion in 2003 and $4.3 billion in 2001). Check fraud losses incurred in 80 per cent of the banks (up from 75 percent in 2003).
  • According to French police reports, check fraud cases have increased by 85% between August 2005 and July 2006 in Paris alone.
  • In Australia the average cheque fraud damage in 2005 was A$ 0.03 in every A$ 100 (0.0003%) = A$ 540 mil (approx. 300 mil EUR) lost to the financial industry in total.
  • In the UK, check fraud attempts increased by 20% between 2003 and 2004 to a total of £665 million in potential fraud losses. Unfortunately no newer figures have been published so far.
Arguably the motivation for perpetrating check fraud crimes is the low risk of being caught.
Check Societies
Country checks
in mio
data of
USA 30,557 2006
France 3,827 2006
United Kingdom 1,778 2006
Brazil 1,709 2005
Canada 1,325 2006
Australia 550 2006
Italy 453 2006
Sources:
  • American Bankers Association (ABA), Deposit Account Fraud Survey Report
  • Australian Payments Clearing Association (APCA)
  • Bank of International Settlements (BIS), Statistics on payment and settlement systems in selected countries "Red Book"
  • European Central Bank (ECB)
  • FEBRABAN Documentation for 2007 CIAB Congress
  • US Federal Reserve Payments Study

Holistic Check Fraud Prevention is highly important

These losses can be avoided. Searching for fraud amongst the billions of transactions may seem like searching for a needle in a haystack. However there is one holistic and sustainable way to address all relevant aspects of check fraud and effectively lower the operational risk. Leading financial institutions around the globe cope with this challenge in using Softpro's SignPlus product suite and securing millions of transactions every day. Up until now, the challenge to fighting this fraud has been to reduce check processing costs while increasing, rather than decreasing, protection against fraud losses.

At MEFX Softpro showcases the brandnew version 4.0 of SignPlus Edition II. Banks enjoy substantial savings for back-office check processing centers by automating tedious and error-prone manual verification while significantly improving the detection of fraudulent items. This solution enables banks to take necessary precautions to secure the paper-based payment process and prevent losses from check fraud in a truly cost-effective manner. Softpro has a proven track record with its systems for the validation of handwritten signatures and fraud prevention in payment processes. The company provides the SignPlus suite of products, which were initially conceived in cooperation with a consortium of the largest U.S. banks. The solution is considered by many of the US Tier 1 banks to be a "best practice industry initiative" to combat check fraud and has been successfully deployed at many of the world's largest financial institutions since its inception.

Trustworthy e-Signing with the Handwritten Signature

For the first time in the Arab region Softpro is showcasing the next generation signature tablet, named SignPad eSignio, introduced to market in December 2007. In the Berliner Sparkasse, one of the largest German Savings Banks, signing on the pad is now part of their primary account opening process in 150 branches. The SignPad tablet allows customers of the Berliner Sparkasse to sign their banking documents and transactions both digitally and securely. The device was specifically developed for the digitizing of handwritten signatures in close co-operation with Wacom and Softpro. "Paperless signing" is a reality there now as customers sign directly onto the display of the SignPad using Softpro’s SignDoc electronic signing software in combination with Adobe Reader and intelligent Adobe documents (based on Adobe Live Cycle). The Berliner Sparkasse expects to significantly save on the cost of paper handling and archiving.

The SignPad has a cordless, battery-free pen. The signature is captured on a non-reflective 5" TFT LCD. The device offers enough space to cater for longer signatures as well, like when some customers may sign with two surnames. The tablet display is designed to offer the same signing feeling as if writing on paper. In combination with Softpro’s account opening software, customers are able to provide a complete paperless workflow for the storing of signatures and legally binding documents such as credit and loan contracts or account opening forms. Visitors of MEFX may experience this new way of signing for themselves.

The Berliner Sparkasse decided to use SignDoc from Softpro - the leading solution for trustworthy capturing, administration and verification of handwritten signatures in combination with the SignPad. Bodo Stüwe, responsible for the project at the Berliner Sparkasse, is convinced by the SignPad: ”We have tested several different input devices, but the SignPad is the only signing tablet that finally convinced us that signing digitally can be comfortable, user-friendly, robust, trustworthy, secure and cost-effective - all at the same time. The reason we chose the combination of SignPad and SignDoc is that we were convinced that it is the only combination that was able to adequately be deployed in a large scale environment.” The combination of SignPad (hardware) and SignDoc (software) is also officially certified by both processing centers of the savings banks in Germany - Sparkassen Informatik and Finanz IT - which are serving 477 savings banks.

Recommended links for additional information


>> Outline about the status of Dynamic Signature Verification today for the RSA Conference 2008 (April 2008, 7)
>> Software Development Kit: Integrating Signature Verification into own Applications (April 2008, 7)
>> Softpro's SignDoc: Handwritten Signatures secure Electronic Documents (April 2008, 7)
>> Press Release about Berliner Sparkasse as first customer of the SignPad (October 2007, 31)
>> Innovation Award for SignPad of DMS Show in Cologne (September 2007)

 

Downloads

Code
Title Last Update Language Status
A11
SignDoc - Product Description2010-02-02en de available
Brochure describing benefits and features of SignDoc
A19
SignPad eSignio - THE Tablet for Trustworthy Signature Capturing2010-02-02de en restricted
>> register for free
Information about Joint Development of Wacom and Softpro

About SOFTPRO

The SOFTPRO Group is the worldwide leading vendor of systems for capture and verification of handwritten signatures. The company is based in Boeblingen, Germany with local subsidiaries in North America (Bear, Delaware), the United Kingdom (London), and Asia-Pacific (Singapore).

The group currently employs an international staff of over 60 people, enabling more than 200 companies worldwide to streamline their document and transaction workflows.

  • With its "eSign Workflow" product line, SOFTPRO provides solutions for securing the authenticity and integrity of documents within electronic processes, such as those required for legal contracts. For this purpose, a unique signature technology is used to extract and evaluate both the static and dynamic (biometric) characteristics of handwritten signatures.
  • SOFTPRO’s "Fraud Prevention Solutions" portfolio provides a holistic approach to detecting and preventing fraud in paper-based processes (such as payment transactions), as well as increasing operational efficiency using signature management and verification solutions.
Among SOFTPRO’s customers are American Express, Bank of America, Barclays, Chase, Citigroup, Discover Financial, Fifth Third, SEB, Sunrise, Standard Bank of South Africa, UBS and Wachovia.

Since 2002, the offer to secure electronic documents with handwritten signatures extended the customer portfolio of SOFTPRO to other industries such as banking and insurance, telecommunication, health and pharmaceuticals, retail, government, automotive and logistics.

Frost & Sullivan - one of the leading growth consulting companies worldwide - presented SOFTPRO GmbH with its "Customer Service Leadership Award" for having excelled in serving its customers and gaining superior customer satisfaction levels. This award recognizes the company that has gained the best insights into customer needs and product demands.

SOFTPRO is privately owned.

SOFTPRO's partners include: A2iA, Adobe, Betasystems, Datalan, Disoft, Fujitsu, Gijima AST, Gizmotech, IBM, Lenovo, Microsoft, Motion Computing, Siemens, Toshiba, TeleCash (First Data), Siemens, Unisys and Wacom.

Please contact us for additional information:

SOFTPRO GmbH

Wilhelmstrasse 34
71034 Boeblingen
Germany

Phone: +49 7031 6606 0
Fax: +49 7031 6606 66

Joerg-M. Lenz
Manager PR

e-Mail Joerg-M. Lenz