Posts Tagged ‘Banking’

Georgia Payday Loans Approval

Global financial institutions are faced with a growing need to “know” – recognize and authenticate – their customers, to preclude fraud losses, the funding of terrorism, money laundering, and tax evasion. Failure to comply with allowable identification of the institutions customers can ensue in monetary losses, fines, and bad publicity.

Current Id Verification Practices at Financial Institutions

Georgia Payday Loans Approval

Financial institutions typically verify Id for the following types of transactions:

Account Opening: The Patriot act initially required institutions to retain a copy of the Id presented while the inventory opening. This was subsequently reduced to requiring only the recording of key facts proving that Id was verified (e.g. Driver’s license number). While it may suffice to note the Id number, a uncomplicated clerical error, such as transposing numbers may invalidate the proof of the Id verification. Capturing the Id card while the inventory occasion process confirms that the Id was verified, and opens the door for better subsequent interactions with the customer. Possibilities include: a) Adding the photo Id to a bank-issued debit or credit card, without the need for photo capture equipment. Small photo Ids are used by storehouse clubs in combined member/credit card applications. B) Showing the Id/photo, personal characteristics, and signature to the teller while a transaction to sacrifice Id fraud.
Routine Transactions: Machine-readable identification cards (Id cards, credit/debit/Atm cards) can be used to recognize a customer. The teller application can pre-populate facts about the buyer to speed up the transaction, and to originate a more pleasant buyer experience.
Cash Withdrawals: Id cards are typically required for any cash relinquishment by a buyer at a branch unless the relinquishment is at the customer’s home bank and the buyer is personally known to the bank employee.
Large Transactions: Financial institutions typically want multiple pieces of Id for transactions over a definite number threshold, together with transfers and deposits. This is vital because losses can occur with large deposits (such as cashier’s checks) where the deposit is a forgery, but only detected after the number was withdrawn.
Check cashing: A modern Fdic explore (1) showed that 7.7% Us households are unbanked, and over a quarter – 25.6 percent – of all households either don’t have a checking or savings inventory at all, or have a bank inventory but still choose to rely regularly on “alternative financial services” like payday lenders and pawn shops. Serving these customers can be profitable, especially in a tough economy, but want solutions to of course recognize a person who is not a buyer of the financial institution. This enterprise is today largely handled by check cashing stores, pawn brokers, but increasingly viewed as an occasion to bring buyer into market (such as convenience market and gas stations) by contribution check cashing services. In check cashing applications, the Id card is required for preliminary inventory registration and for subsequent check cashing transactions.
Government Regulations: Id verification is required for any financial transaction that may want government reporting, such as in the Us cash transactions over ,000. In countries with foreign change regulations, transactions need to be reported by government Id number. Most foreign change windows want a valid Id.

Developments in Identification Documents

Post 9/11, it has come to be obvious that government-issued identification (passports, national Id cards, driver’s licenses) were not sufficiently protected against forgery. The 9/11 Commission recommended that the U.S. Improve its theory for issuing identification documents, urging the federal government to set standards for the issuance of sources of identification.

For international travel, the International Civil Aviation club (Icao) issues a proper for biometric passports, or e-passports. E-passports contain biometric facts on the passport owner on a gain chip. Collective key infrastructure is used to authenticate the data stored on the passport chip. The United States (2) and most of the Eu nations have adopted e-passports for all new passports issued.

Passports are only required for international travel, and are not typically used as Id in domestic commercial transactions where state-issued driver’s licenses are the customary identification documents.

The found of state driver’s licenses has typically been insecure and very easy to forge. The easy availability of counterfeit state Id documents creates a problem with Id theft, and the enforcement of liquor sales restrictions.

In 2005, President Bush signed the Real Id-”Improved security for Driver’s License and Personal Identification Cards” Act (3). Real Id has been controversial, with several states demanding a repeal and change with the proposed Pass Id act. As of January 2011, department of Homeland security issued a waiver of the deadline, but states must be in full yielding by May 2011.

In increasing to Real Id, Michigan, New York, Vermont, and Washington are issuing Enhanced Driver’s Licenses (Edl) (4). Edl’s supply proof of identity and U.S. Citizenship, are issued using a gain process, and contain technology that makes trip easier. Edls are an alternative document to comply with trip rules under the Western Hemisphere trip Initiative (Whti) for entering the United States from Canada, Mexico, or the Caribbean straight through a land or sea port, in increasing to serving as the permit to drive. Michigan, New York, Vermont, and Washington issue Whti compliant documents.

Despite the opposition to Real Id, most states are implementing new driver’s licenses and state Id cards that contain enhanced security features:

Magnetic stripes – magnetic stripes have been the main recipe for storing facts on a credit/debit/Id card. They are not very secure, but are regularly retained for compatibility with a large installed base of equipment.
2-D barcodes. Edls want a Machine-Readable Zone (Mrz) or barcode as backup to the Rfid. Many states are adopting 2-D barcodes in basic driver’s licenses. 2-D barcodes used in Ohio and Georgia driver’s licenses can store more data, and data can be protected with encryption or digital signatures.
Radio Frequency Identification (Rfid) chips. Rfid is used for Enhanced Driver’s Licenses and the Trusted Travelers Programs (Nexus, Sentri, and Fast).
Ultra Violet Zones. Uv zones contain invisible symbols that light up only in the proximity of Uv light. These are difficult for counterfeiters to copy.
Microprint. Microprint on driver’s licenses prevents forgery. As with bank notes, microprint can be recognized with magnifiers and high resolution imaging devices and make counterfeiting more difficult.
Color and positioning of owner photograph. As with banknotes, color patterns and placement are used to resolve forgeries.

Applications of Id Card Imaging

The availability of scanners and software to capture Id card magnetic stripes and images open opportunities for two levels of utilization of the Id card images:

Archival storehouse of Id card images provides a specific proof that Id cards were presented. As noted earlier, they can supply levels of security against Id theft by displaying images of the Id holder. Even a uncomplicated application of recognition technologies (comparing facts from the card text, magnetic stripe, and barcode) will detect many common forgeries. Storing front/rear images of Id cards supply proof that the bank employee complied with the Patriot Act, obtaining the Id of a new inventory holder.

Authentication takes the Id verification to the next level. Authentication solutions offer an self-operating advent to Id verification, alerting the user of inherent risk factors, forgeries, and expired Id cards.

Advanced Id detection systems (see example: advancediddetection.com), typically contain a color/high resolution scanner combined with software to authentic Id cards. Id authentication solutions

Scan the Id in color, with high resolution
Read barcodes and magnetic stripe data
Verify infrared patterns
Cross-check facts in clear text, barcode and magnetic stripes
Warn if the Id card is expired, a person is under legal age, etc.

Automated authentication systems are used, for example, in liquor market and restaurants to avoid sales to minors. It is challenging to note that the transportation security administration (Tsa) has not implemented self-operating authentication on a wide scale. Tsa has proper bids for systems, but so far has miniature Id authentication to office training and hand-held Uv lights.

Application of Id Scan/Archive and Authentication in Financial Institutions

Most teller stations in financial institutions are adequate with a validation/receipt printer, a Pc, monitor and keyboard. More industrialized institutions deploy cash dispensers, cash recyclers, coin recyclers, and signature/Pin pads.

Check image capture has moved largely from centralized proof/reader/sorter operations to branch capture. A majority of financial institutions have implemented branch capture (est. 68% of branches) at the back counters. Back counter capture eliminates the “prime pass” but does not eliminate most of the back-office check processing tasks. It offers few fraud arresting opportunities – by the time the item is captured the person will have left the branch.

Fewer but more technologically industrialized institutions have implemented check capture at the teller. Implementations of teller capture are growing rapidly in 2010/2011 with many major regional institutions adopting teller capture.

Unfortunately, current teller scanners are not powerful for Id capture, and even less for Id authentication

First generation check scanners were oriented towards the “lowest common denominator”, 200 dpi bi-tonal images, which may be enough for check image change but not well powerful for Ids.
The installed bases of devices have a u-track found that cannot process stiff items such as Ids.

Teller scanners are designed for a five year life cycle, but with declining check volumes will last 7-10 years or longer. It is therefore vital for the business to ensure that the next generation teller scanner is more versatile to safe the big speculation required to implement teller capture.

The currently ready free-standing solutions for Id authentication are not well-suited for branch banking, because

Id authentication solutions are not integrated with other banking applications
Free-standing Id authentication solutions are high-priced and would consume vital teller workspace.

It makes much more sense to use teller check scanners for Id capture. To enable future Id scan/authentication applications, a suitable teller scanner must offer

A straight track for stiff Id cards. Since miniature footprint and the need of 100-item hoppers and stackers want a u-shaped design, Id cards must be scanned using a “by-pass feeder” that enters still items after the bend, but before the front/rear cameras.
A resolution of at least 300 dpi, with 256 gray level image capture.
An integrated magnetic stripe reader.

The next generation of check scanning devices will allow institutions to capture Id images for

Archival storehouse of proof that the practice validated the Id
self-operating capture of buyer facts (name, address, age, sex) for new inventory occasion or future marketing of unbanked / competitor prospects.
additional logon security by authenticating the teller using the teller employee Id card.
Faster teller service by automatically occasion the buyer inventory when an Id or credit/debit card is captured -without an extra Pc peripheral device. This is generally used in teller operations in international banks.
Recoding of Id images for display at teller workstations to preclude withdrawals with stolen Id
A level of authentication supported by 300 dpi grey-scale images, such as decoding 2-D barcodes, and matching Id card and inventory data with barcodes and magnetic stripe information
Potentially adding Id pictures to bank-issued Debit/Atm cards, a practice successfully used by storehouse clubs for combined membership/credit cards, without additional photo equipment.

Application of Id Scan/Archive and Authentication in Alternate Financial Services Channels

Alternative financial services channels supply services that are mostly targeting the unbanked/under-banked population. Alternate financial services are provided by pawn brokers, check cashing stores, pay day lenders, gas hub stores, casinos, convenience stores, and even prisons. A modern Wall street Journal report (5) ] lamented that the 2009 credit Card (Card accountability accountability and Disclosure) Act “pushed more Americans surface the banking system” in the name of consumer protection.

Many alternate financial transactions are conducted on financial self-service kiosks. Kiosk integrator found devices with a wide array of features: Id card readers, debit/credit card readers, check acceptors, cash dispensers and acceptors, cameras, and even money order and store value card printers.

Since these customers typically do not use a bank card as the Id or debit/credit card, the driver’s license becomes the customary identification tool. The following is an example of an application implemented at convenience market of a gas hub chain with the Cts Sb50E module in a self-service kiosk:

buyer registers by inserting the driver’s license. The Id is scanned, stored, authenticated by software, and returned to the customer.
The buyer is registered using facts from the Id (clear text, magnetic stripe and barcode).
The buyer feeds in the check.
The Id and photo/video of the buyer is used for approval by a human operator at a central location. The operator accepts the check and it is endorsed, stamped and retained in the device, or rejected and returned to the customer.
The kiosk dispenses cash, a stored value card, or a money order (minus a commission).

Financial self-service kiosks are funded by transaction fees, but are often deployed as a marketing tool to bring customers into the convenience store.

Future Technology Advancements – Uv and Color Imaging

While color images are proper in most imaging applications, they have not been widely adopted in Us check processing. But in international banking, the use of color imaging and Uv is growing rapidly.

Asian applications want higher-resolution color images to authenticate “chops” – seals that function as signatures.
Central banks in India (6) and Latin America are establishing check standards that contain Uv zones to preclude fraud. The new retain Bank of India Check Truncation theory Cts-2010 (7) features contain use of watermark and printing of bank logos that are only descriptive with ultra violet images.

As a result, we will see advancements in check scanner technology, together with Uv and color image capture for check capture and authentication. Color / Uv image capture will offer the occasion to additional Improve the drive of Id authentication.

1) ]Fdic National Household Survey

2) Bureau of Consular Affairs, U.S. department of State

3) Us department of Homeland security – Real Id Final Rule

4) Us Customs and Border security Enhanced Drivers License website

5) Wall street Journal, Jan.4 2011, Todd Zywicki, Dodd-Frank and the Return of the Loan Shark

[6) Rbi prescribes enhanced security norms for checks- Indian bank org

7)Reserve Bank of India Cts 2010 proper for cheque forms – specifications

Id Authentication in Banking Applications

Georgia Payday Loans Approval