FraudOne^®
SOFTPRO's flagship fraud detection solution

The risk of your financial institution becoming the victim of fraud crimes is growing every day. Due to legislative changes, and the increasing sophistication of criminals, the banking industry has become an easy target for check fraud crimes.

There is never a good reason to lose money.

We are proud to introduce the first effective next-generation fraud detection solution

Note: Outside the United States the solution is branded as SignPlus^®.

Unlike other solutions that loosely integrate independent silo detection systems, FraudOne^® is based on a holistic, flexible, cost-effective, and proven approach. The platform-based system architecture combines several complementary image processing technologies to effectively identify suspicious payment items, and ensure that you do not waste time looking at inaccurately flagged suspects (false positives). To achieve this, FraudOne^® incorporates a unique risk-scoring technique that significantly reduces false positives so that you can concentrate on only the real suspects.

Front and Back Office Solution Aspects

FraudOne^® provides components for Day 2 back-office batch processing of payment items as well as Day 1 instant verification solutions that enable your tellers to instantly verify payment items at the front office.

Secure and low-risk investment

Unlike other fraud detection systems, FraudOne^® fits into your institution's current infrastructure and not vice versa so that it can be implemented with minimal changes to your existing back-office infrastructure.

The FraudOne^® platform can quickly and easily be adapted with new detection functionality and fraud profiles as industry fraud patterns change. With FraudOne^®, we are committed to providing you with a secure and future-proof investment that will continue to provide value as industry demands change.

Proven Solution

In co-operation with six of the U.S. banking industry's leading institutions, SOFTPRO defined check fraud prevention best-practice requirements in 2001 as part of the FraudOne^® initiative.

These activities have resulted in SOFTPRO's implementation of the first truly effective image-based fraud prevention solution based on SOFTPRO products and services: FraudOne^®

Bank of America

Angela Bardowell, Senior Vice President, Process Design Executive, about SignBase and SignCheck components of the SignPlus system - branded as FraudOne in the US

March 2005

"When we first started looking into an image-based fraud detection solution, we were skeptical that we could find a product on the market that would satisfy our business requirements, be cost-effective, and be able to perform in a highly complex check processing environment such as Bank of America's. We did an extensive search of all vendors on the market. SOFTPRO convinced us that they would be the right partner for us based on the quality of their product, their ability to correctly identify fraud, and their professionalism as a company. Their products exceeded our expectations by enabling us to reduce our false positives by 50%, as well reduce our losses due to counterfeit and forged maker signature checks by 60%! We are convinced that we made the right choice by selecting SOFTPRO."

BITS

BITS is a non profit-consortium of 100 of the largest financial institutions in the US.

"Strategies for Mitigating Fraud Risks Associated with the Check Clearing in the 21st Century Act" - about the benefits of the SignPlus system - branded as FraudOne in the US

October 2004

"New image-based signature verification tools, such as FraudOne^®, provide an opportunity to systematically review more signatures at a lower dollar threshold than is feasible with the current, manual signature review process. These tools greatly reduce today's high false positive rates for counterfeit and forgery."

>> Check out what others say about SOFTPRO

FraudOne^® at a glance ...

Image analysis infrastructure
Front-office capture and verification
Web and fat client module for enabling remote signature capture and storing into the signature data base (SignBase)
Signature verification and forgery detection
Check Stock Verification
Processing engine for automatically detecting counterfeit checks.
PAD Fraud Detection
Processing engine for automatically identifying pre-authorized drafts
Automated Technical Verification
Processing engine for automatically verifying legal and courtesy amounts (LAR/CAR)as well as identifying post- and/or out-dated checks
Rules-based Risk Scoring - "Combined Risk Score / CRS"
Rules-based add-on module to FraudOne for creating business rules, and/or consolidating results from several sources to identify fraud. The module is also used for dynamically configuring the item processing workflow.
Incorporation of Transaction Analysis results and other back office systems
Analysis Workstations
Fraud, Exception Item processing
Day 1 instant verification of payment items
Web module for providing instant verification of checks to identify suspects at the teller window on Day 1
World class consulting and services

FraudOne Fraud Prevention - The Solution

Click on the image for larger view in a seperate window.

The success of FraudOne^® speaks for its effectiveness: Several of the world's top financial institutions have implemented FraudOne^® into their processing environment and are enjoying the benefits of effective fraud detection today.

Contact your SOFTPRO sales team today to hear details of the many successful implementations, and how we can help you succeed in reducing your losses by using a truly holistic approach.

Background Information

The Challenges of Check Processing addressed by FraudOne

Check processing has entered into an all-image environment. The Check 21 act took effect October 28, 2004. It requires banks in the US will no longer receive original checks from the bank of first deposit but rather an Image Replacement Document or IRD. Current paper-based methods of fraud detection will be lost and fraud analysts can no longer rely on the look, feel and smell of the paper item. Fraudsters are aware of this and have begun exploiting this vulnerability.

According to the "2003 Check Fraud Survey" of the American Bankers Association (ABA) "Forged Maker Signature" and "Counterfeit Items" continue to be a favorite target of fraudsters. Together, these two categories make up over 40% of check fraud attempts annually. In addition, Pre-Authorized Drafts have become the newest target of fraud with fast growth rates. On the other hand the volumes of checks in the US are only decreasing slowly - still reaching approx. 34 billion in 2005.

... fraud rose again to USD 5.5 billion (2001: USD 4.3 billion, 1999: USD 2.2 billion)
... check fraud was still growing - with a downward trend for large institutions but a quick upward trend for smaller institutions. E.g.: In 2003, 75 percent of commercial banks incurred check fraud losses, up from 72 percent in 2001.
... more institutions are reporting fraud losses.
... more loss cases were reported but with a lower average dollar loss per case.

Solution Description

SOFTPRO developed the FraudOne^® check fraud solution together with its technology partners. Its initial aim is to mine the digital artifacts on check images to uncover the tell tale clues of fraud. The solution package combines the best technology available in the industry to deliver an integrated, multifaceted approach to fraud detection.

FraudOne provides banks with the greatest protection against check fraud by targeting the three most important categories of fraud: "Forged Maker Signature", "Counterfeit Items" and "Pre-Authorized Drafts" (PAD). The combined analysis of automatic signature verification, check stock verification, PAD fraud detection and transactional analysis gives banks the intelligence it needs to find the most fraud while minimizing false positives associated with most conventional silo fraud detection methods. FraudOne eliminates the "needle in the haystack" burden most banks experience with check fraud detection and only delivers suspect items with the highest probability of fraud to analysts for review.

Additional Information

Get in touch with your local sales contact from SOFTPRO and discover why more financial institutions in the world use SOFTPRO than any other solution for check fraud detection.

>> American Bankers Organisation	Distributor of the biannual "Deposit Account Fraud Survey Report"
>> Check 21 Act	includes the Act itself of "Check Clearing for the 21st Century"
>> BITS	A nonprofit consortium of 100 of the largest financial institutions in the US. Created in 1996 to foster the growth and development of electronic financial services and e-commerce for the benefit of financial institutions and their customers. It shares membership with The Financial Services Roundtable. BITS seeks to sustain consumer confidence and trust by ensuring the security, privacy and integrity of financial transactions. BITS works as a strategic brain trust to provide intellectual capital and address emerging issues where financial services, technology and commerce intersect.
>> The Financial Services Roundtable	Premier forum in which leaders of the United States financial services industry determine and influence the most critical public policy issues that shape a vibrant, competitive marketplace and a growing national economy, promote the interests of member companies in federal legislative, regulatory, and judicial forums; and effectively communicate the benefits of competitive and integrated financial services to the American public.