CSI and Mitek Systems launch AI-driven check fraud detection tool to combat rising financial crimes

In response to the escalating threat of check fraud across the United States, Computer Services Inc. (CSI), a prominent provider of financial software and technology solutions, has unveiled an advanced check fraud detection tool for its NuPoint platform. Developed in partnership with Mitek Systems, this new solution leverages real-time fraud detection technology, artificial intelligence (AI), and computer vision to fortify community banks against increasingly sophisticated fraudulent activities.

How does CSI’s new check fraud detection tool enhance banking security?

The launch of CSI’s check fraud detection solution marks a significant shift in how banks address fraud prevention, particularly at the teller line. Unlike traditional fraud detection systems that rely on overnight batch processing to review transactions, this tool provides real-time fraud prevention, allowing bank tellers to identify suspicious checks instantly during face-to-face transactions.

Heather Deneault, assistant vice president and deposit operations and branch management officer at Denison State Bank in Northeast Kansas, highlighted the proactive benefits of the tool. According to Deneault, the system enhances teller vigilance without depending solely on manual reviews. Its ability to adapt to customer banking habits ensures that fraud detection processes become more robust over time.

“Our main goal is to protect our customers,” Deneault said. “By detecting fraud right at the teller line, we can proactively safeguard their assets. CSI’s technology provides a customisable system that continually learns about our customers’ banking behaviours, helping us scale our fraud detection efforts effectively.”

Why is real-time fraud detection crucial amid rising check fraud cases?

The urgency for advanced fraud detection systems is underscored by alarming statistics: between 2021 and 2023, check fraud-related suspicious activities surged by 90%, with continued increases reported throughout 2024. As criminals deploy more sophisticated tactics, traditional fraud prevention methods struggle to keep pace.

CSI’s real-time fraud detection solution is designed to counter these evolving threats. Powered by Mitek Systems’ expertise, the tool taps into a consortium of financial institutions representing millions of consumers. This collaborative network allows the system to learn from a vast pool of transaction data, enhancing its ability to detect anomalies and prevent fraudulent activities before they cause financial harm.

Steve Sanders, chief risk and information security officer at CSI, emphasised the growing complexity of fraud schemes. “As check fraud schemes become more sophisticated, it’s critical to have a solution that delivers fast, consistent protection. By leveraging AI and computer vision, we can minimise fraud losses and ensure our customers receive the most advanced security available,” Sanders explained.

What technologies power CSI’s advanced check fraud detection solution?

At the core of CSI’s fraud detection system is a combination of AI, machine learning, and computer vision technologies. This powerful trio enables the solution to analyse checks with remarkable precision, evaluating up to 24 scorable check attributes in real time. These attributes include high-resolution image analysis, signature verification, and pattern recognition, all designed to identify discrepancies that may indicate fraudulent activity.

The system’s continuous learning capability is another key feature. By participating in Mitek’s consortium-based data sharing model, the tool refines its algorithms based on real-world transaction patterns. This means the more data it processes, the smarter it becomes, enabling it to anticipate emerging fraud trends and adjust detection protocols accordingly.

Additionally, the solution operates within a secure, cloud-hosted environment that employs end-to-end encryption and complies with ISO 27001-certified security protocols. This ensures that sensitive financial data remains protected while enabling seamless updates and scalability for banks of all sizes.

How does CSI’s partnership with Mitek Systems strengthen fraud prevention?

The collaboration between CSI and Mitek Systems brings together two industry leaders in financial technology and fraud prevention. Mitek’s Check Fraud Defender, integrated into CSI’s NuPoint platform, enhances the system’s capabilities with real-time data analysis and consortium-driven intelligence.

Michael Diamond, senior vice president and general manager at Mitek Systems, highlighted the strategic value of the partnership. “We’re thrilled to partner with CSI to integrate Mitek’s Check Fraud Defender into their NuPoint solution. Our combined expertise in real-time fraud prevention and consortium-based data sharing strengthens in-branch security and helps financial institutions stay ahead of evolving threats,” Diamond said.

This partnership reflects a broader trend in the banking industry, where collaboration and technology integration are essential to addressing complex security challenges. By pooling resources and expertise, CSI and Mitek aim to create a comprehensive fraud prevention ecosystem that benefits not only individual banks but the financial sector as a whole.

What’s next for fraud detection in banking?

As financial crimes continue to evolve, the future of fraud detection will likely focus on predictive analytics and adaptive technologies. CSI’s solution is already positioned for this shift, with its continuous learning framework and real-time processing capabilities.

For community banks, adopting such advanced fraud detection tools is no longer optional but a necessity. The ability to detect and prevent fraud at the point of transaction not only protects financial institutions from losses but also builds customer trust—an invaluable asset in today’s competitive banking environment.

In the face of rising fraud threats, CSI’s new tool represents a proactive approach to security, offering banks the tools they need to safeguard their operations and their customers’ financial well-being.