PATENT-PENDING TECHNOLOGY FOR HIGH-VOLUME, LOW-COST CHECK FRAUD

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PATENT-PENDING TECHNOLOGY FOR HIGH-VOLUME, LOW-COST CHECK FRAUD DETECTION FraudVision The Check Clearing for the 21st Century Act (Check 21) and image exchange provide a tremendous opportunity for banks to reduce paper handling, transportation and clearing expenses. They also provide a tremendous opportunity for fraud. While faster check posting made possible by Check 21 will deter some fraud and make check kiting more dif cult, fraudsters will almost certainly evolve new schemes.

The banking industry is up against highly skilled and organized individuals who can be expected to regroup and exploit new practices with counterfeiting and account takeover. Banks will no longer be able to rely on physical clues of paper checks such as color, smell and feel. A skilled fraudster could obtain a legitimate check, create an image of it, alter it, print a counterfeit image replacement document (IRD) and try to cash it at multiple locations.

Fraud prevention in the Check 21 world is also about more than avoiding losses. It 9s about protecting the banking industry 9s investment in image-exchange technology. Many banks are leveraging the costs of reengineering their back of ces for Check 21 compliance by moving from paper- based systems to image exchange and check truncation.

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enhance fraud prevention could leave the banking industry more vulnerable to fraud, eroding customer con dence and resulting in a more rapid run-off to competing payment channels. With fewer checks to process, per-check processing costs will rise and ultimately delay the payback on image-exchange systems. Your customers are bombarded daily with advertising messages from credit card and debit card vendors touting their anti-fraud programs. What can your bank do to preserve customer goodwill and assure consumers that checks are highly secure? FraudVision protects your customers and your Check 21 investment by providing an automated method of detecting counterfeit and forged checks. This provides a higher level of service and security for both you and your customers. ? ONE OF THESE PEOPLE IS ABOUT TO COMMIT CHECK FRAUD. DO YOU KNOW WHO? If not, t hen you need CSC 9s FraudVision ® software. FraudVision uses cutting-edge image technology to combat check fraud in high-volume payment processing operations. You can detect more forged and counterfeit checks at a lower cost 4 and with fewer false positives. Use FraudVision to protect your bank and your customers against fraud loss. PREVENTING CHECK FRAUD IN A CHECK 21 WORLD " Signi cantly improve accuracy in fraud prediction and lower false positive rates " Reduce losses from check fraud without increasing labor costs " Increase customer trust and goodwill " Enhance customer service for payee name recognition and other offerings CSC 9S FRAUDVISION HELPS BANKS: If not, then you need CSC 9s FraudVision ® software. FraudVision uses cutting-edge image technology to combat check fraud in high-volume, payment processing operations. Detect more forged and counterfeit checks at a lower cost 3 and with fewer false positives. Use FraudVi- sion in the back of ce or at point of presentment to protect you and your customers against fraud loss. THE CURRENT STATE 4 ONLY A FEW CHECKS ARE SCRUTINIZED ANALYZE MORE CHECKS WITH FRAUDVISION Fraud perpetrators seek the level of least resistance. They target institutions with the least-sophisticated detection systems, and they keep check amounts low to stay cbelow the radar. d The problem is simple. Set dollar thresholds too high (A) and you leave plenty of opportunity (B) for fraud to occur. Attempt to lower the dollar limits and you must add expensive staff to keep up with the workload. Other techniques such as digital seals (C) , where data is encrypted into a watermark, and payee positive pay (D) , where the customer sends a daily data le to the bank, are applicable only to a small subset of total accounts and check volumes. It takes a new approach 4 such as FraudVision 4 to balance the situation and help you nd more fraud. FraudVision uses a detection technique that requires no changes in customer behavior and can be used for any commercial or retail account. It allows you to lower your review thresholds without adding expensive staff. Simply put, it makes it much harder for fraud to occur below the radar. CSC 9s FraudVision is a suite of automated, patent-pending software tools that integrate pattern-matching and recognition capabilities with check imaging. FraudVision has a very low false positive rate and can help your bank analyze more checks without generating more labor costs or taking more time. FraudVision makes it feasible for a bank to lower dollar thresholds (E) and analyze more checks to uncover more fraud with the same amount of staff. FRAUDVISION & DATA ANALYSIS SIGNATURE VERIFICATION & DATA ANALYSIS With CSC 9s FraudVision, a majority of items are analyzed. IMAGE SEALS PAYEE POSITIVE PAY UNDETECTED FRAUD SIGNATURE VERIFICATION & DATA ANALYSIS IMAGE SEALS PAYEE POSITIVE PAY UNDETECTED FRAUD Current check fraud detection methods analyze only a small percentage of total items for fraud. E B A C D FraudVision leverages the power of multiple engines to reduce the false positives requiring analyst review. HOW FRAUDVISION IS DIFFERENT More and more banks are converting to high-volume, image-based payment processing operations that include decentralized capture and image exchange. CSC 9s patent-pending FraudVision software technology supports the strategic vision, the cooperative approach and the reengineered business processes needed for this new environment. Better yet, FraudVision helps banks nd more fraud in a post-Check 21 environment. FraudVision uses the most extensive combination of recognition engines, business rules and prediction techniques to surpass traditional signature veri cation methods to protect against check fraud. The culmination of more than 15 years 9 experience with pattern recognition technology, FraudVision extends intelligent character recognition (ICR) to include both machine and cursive handwriting on check images. When an image of a new check is presented for payment, FraudVision automatically determines if the check writing characteristics match the trusted pro le of the account holder. If the comparison indicates signi cant fraud potential, the case is referred to investigators for analysis. FraudVision becomes a powerful and accurate fraud detector within your organization. Signature Veri cation Is Only the Beginning FraudVision stores the history of the handwriting characteristics of each accountholder. With FraudVision, the entire check 4 not just the signature 4 is the customer 9s symbol of authenticity. FraudVision pattern matching looks at data samples in the signature, payee, payor and serial number elds. It also pattern matches against the known check stock and layout and detects images with double MICR lines. The combined result is more sophisticated fraud prediction that also can be leveraged in the future as banks evolve to real-time checking and fraud prevention at the point of presentment. FraudVision Comparing signatures is not enough. New technology in CSC 9s FraudVision software examines many attributes that 4 in total 4 provide powerful clues to uncover check fraud. Signature Double MICR Payee Check Layout/Stock Payor Serial Number 5 4 3 2 6 1 1 2 3 4 5 6 FRAUDVISION IS EASY TO USE FraudVision 9s rules engine allows business users to create and tune rules that direct the functions of FraudVision, providing exibility and conformance to a bank 9s strategies. Non-technical employees can con gure FraudVision to support a bank 9s business policies without needing to change the application code. Banks set processing and performance characteristics based upon dollar thresholds, account or document type, region or other supplied characteristics of the incoming checks. There are two general types of rule sets: " Analysis Control Rules that specify how much and in what order analysis is to be performed for a given check image " Combined Analysis Results Evaluation (CARE) Rules that specify what is to be done with a given check based on the results obtained from all FraudVision analytical components. Combined with traditional data analysis techniques, these combined results greatly enhance the accuracy of fraud predictions. Analysts quickly identify differences between stock elements and suspect items. FraudVision recognizes alterations to the payee name. FRAUDVISION MODULE 4 PAYEE RECOGNITION FOR POSITIVE PAY FraudVision 9s Payee Positive Pay module enables nancial institutions and their corporate clients to work together more effectively to combat fraud and reduce nancial losses. With traditional positive pay programs, banks match data from checks presented for payment against their corporate clients 9 lists of issued checks. Integrating this facility with FraudVision creates a program that identi es changes to serial number, dollar amount, account number and the payee 9s name. This module increases the likelihood of detecting counterfeits and forgeries. FRAUDVISION ANALYST WORKSTATION 4 ADD EVEN MORE EFFICIENCY The FraudVision Analyst Workstation integrates the check analyst review into a bank 9s work ow. Using the workstation, analysts can review and make decisions on more than 300 items per hour. Suspect checks agged by FraudVision for analyst review are automatically incorporated into daily processing based on the bank 9s speci cations. Access to workstation queues and functions is role-based, and item decisions can be reported individually or in batch. This offering includes: " A simple work ow supporting prioritized work queues. Suspect item packages are placed into these queues and are automatically sorted according to their suspect priority 4 presenting analysts with high- priority items rst. " A Fraud Analyst Workstation utility application that allows analysts to visually contrast suspect items and the base images against which they were measured. Items can then be annotated, assigned pay or return status and/or deferred for later review by another operator. " An administration and monitoring tool that allows system administrators to examine the queues. FraudVision FRAUDVISION 4 EASE OF INTEGRATION The FraudVision software suite includes an image importer and a data importer. Supporting data les may be imported from complementary fraud prevention software. These data les are placed into a staging area to be converted by the FraudVision system and included in overall results. For suspect items that are manually reviewed by the analysts, the bank work ow announces those decisions back to FraudVision. Decisions may be made by the FraudVision For 25 years, CSC has provided cost-effective solutions to more than 1,200 banks and nancial services companies. FraudVision software is just one component in CSC 9s powerful offering for payment processors worldwide. This software suite encompasses FraudVision and the following offerings. CheckVision Archive An enterprise transaction archive system for North American nancial services institutions, CheckVision® Archive cost-effectively stores millions of transactions for long-term access, including check images, payment images, transaction data, statements, reports and more. CheckVision Delivery A leading transaction delivery solution for worldwide nancial services institutions, CheckVision Delivery includes Statements, Encryption, CD-ROM Plus, and e-Delivery applications. This combined software provides archived customer statements and check images to customers via mail, CD-ROM or the Internet. CheckVision Delivery can be implemented with other archival software as well as CheckVision Archive. CSC 9S INTEGRATED PAYMENTS SOLUTIONS CSC, a Fortune 200 company, is one of the world 9s leading IT services rms. CSC developed FraudVision with the assistance of a consortium of the top banks in the world. CSC backs its commitment to the banking industry with world-class support, research and development. CSC 9s FraudVision helps you minimize losses from check fraud and cost-effectively improve the accuracy of fraud prediction. To learn more about FraudVision and other components of CSC 9s Integrated Payments System, call 800.345.7672 or e-mail inforequests@csc.com. THE STRENGTH OF CSC workstation and/or your bank 9s exception review process. All suspect items that are either rejected or cleared will be presented to the FraudVision Feedback Repository. A results database keeps track of the items presented and this cclosed loop d system modi es account pro les to re ect decisions made within FraudVision and in external systems. The system adapts as your customers evolve. Payment Processing CSC 9s Payment Processing solution provides North American nancial services institutions with a scalable, high-volume, eld-proven system for all types of payments 4 including retail remittances, retail lockbox and wholesale lockbox. Computer Sciences Corporation Financial Services Group 200 W. Cesar Chavez Austin, Texas 78701 +1.512.345.5700 +1.800.345.7672 Worldwide CSC Headquarters The Americas 2100 East Grand Avenue El Segundo, California 90245 United States +1.310.615.0311 Europe, Middle East, Africa The Royal Pavilion Wellesley Road Aldershot Hampshire GU11 1PZ United Kingdom +44(0)1252.534000 Australia/New Zealand 26 Talavera Road Macquarie Park, NSW 2113 Australia +61(0)2.9034.3000 Asia/Paci c 139 Cecil Street #08-00 Cecil House Singapore 069539 Republic of Singapore +65.6221.9095 About CSC Computer Sciences Corporation, one of the world 9s leading consulting and IT services rms, helps clients in industry and government achieve strategic and operational results through the use of technology. The company 9s success is based on its culture of working collaboratively wit h clients to develop innovative technology strategies and solutions that address speci c business challenges. Having guided clients through every major wave of change in information technology since 1959, CSC combines the newest technolo gies with its capabilities in consulting, systems design and integration, IT and business process outsourcing, applications software, and Web and applicat ion hosting to meet the individual needs of global corporations and organizations. About CSC in Financial Services CSC distinguishes itself through its time-tested ability to plan, build and operate highly reliable, ef cient and secure business and IT solutions for leading nancial services rms around the world. To complement its capabilities in consulting, systems integration and outsourcing, CSC brings nancial services industry knowledge and experience, a comprehensive portfolio of nancial services application software and an extensive network of industry and technology partners. More than 10,000 CSC employees are dedicated to serving nancial services clients, including more than 1,200 major banks, insurers and investment management and securities rms. www.csc.com Copyright © 2006 Computer Sciences Corporation. All rights reserved. Printed in USA 793061k

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