The introduction of the Image Clearing System could leave banks vulnerable to fraud
To modernise the process of clearing cheques, a new Digital Image clearing system has been introduced in the UK. Banks will now be legally required to exchange digital images of cheques with one another. While this allows faster cheque payment processing, the change, could leave banks vulnerable to increased cheque fraud as existing systems are often unable to detect counterfeiting and altered cheques from scanned images.
Communisis’ solution to this, e-UCN (Unique Coded Number) uses a complex algorithm to generate a unique code that is laser printed onto customers’ cheques as they are being personalised, ensuring that suspect cheques are automatically held for investigation. e-UCN is irreversible, unique to each cheque and can only be decrypted using a ‘decryption key’ built into a bank’s clearing process.
If you would like to understand the value that five major banks have found testing and adopting this system, please get in touch.