Check alteration detection system and method

• US 5,890,141 A
• Filed: 01/18/1996
• Issued: 03/30/1999
• Est. Priority Date: 01/18/1996
• Status: Expired due to Term

• Current Assignee: Bank of America Corp.
• Original Assignee: Merrill Lynch & Co. Incorporated (Bank of America Corp.), Mellon Bank NA (Bank of New York Mellon Corporation)
• Inventors: Brady, Anthony F., Carney, James F., Ponsonby, Jr., Craig W.
• Primary Examiner(s): Poinvil, Frantzy
• Application Number:
  US08/588,130
• Time in Patent Office: 1,167 Days
• Field of Search: 395/244, 395/245, 395/235, 395/217, 395/601-603, 340/825.34, 382/137-139, 235/375, 235/379, 235/381, 194/210, 194/232, 705/17, 705/35, 705/44, 705/45
• US Class Current: 705/45
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• CPC Class Codes: G07F 7/125 Offline card verification

Abstract

A system and method for detecting and thus preventing check fraud utilizing a digital computer with image capture and interpretation systems. The system converts the payee information, issue date and the MICR line information (account number, check number and dollar amount) to a check digit which is then placed into the MICR line of a check, printed on its face or transmitted via the paid issuance file to the drawee bank. The drawee bank, upon presentment utilizes a transformation algorithm to convert the printed payee information and issue date on the check into a numerical value that is combined with MICR line information and a check digit is calculated based upon pre-agreed logic. This unique data processing system quickly confirms properly presented checks while effectively precludes payee and other alterations in a cost effective manner.

Claims

1. In combination in a system for determining whether check information printed on the face of a check has been modified comprising:

a first computer means for printing check information on the face of a check, including means for converting said printed check information to a first digital value;

a second computer means for capturing and processing said printed check information, including scanning means for capturing said printed check information from the face of said check and means for converting the captured printed check information to a second digital value;

means for conveying in a MICR line or paid issuance file said first digital value to said second computer means; and

said second computer means further comprising a comparison routine for comparing said first digital value to said second digital value to discern a match therebetween, wherein said second computer means further comprises means for iteratively evaluating one or more field position for which more than one value may exist to determine if a changed value will produce a match.

2. The system of claim 1 wherein the means for converting the printed check information to a first digital value comprises a predetermined algorithm selected from a set of at least one algorithm;

and the means for converting said captured printed check information to a second digital value comprises said predetermined algorithm.

3. The system of claim 2 wherein the printed check information comprises information selected from the group consisting of payee name, check number, check amount, issue date and account number.

4. The system of claim 3 wherein the printed check information includes the payee name, and the predetermined algorithm includes a step for transforming said payee name to a numerical value, said numerical value being used in the predetermined algorithm to convert the printed check information to a digital value.

5. The system of claim 4 wherein each of said at least one algorithm of said set of algorithms is assigned an identifying number, and said means for conveying comprises means for conveying an identifying number corresponding to said predetermined algorithm along with said first digital value to said second computer means.

6. The system of claim 1 wherein said means for conveying comprises placing said first digital value in the MICR code of the check.

7. The system of claim 1 wherein said means for conveying comprises placing said first digital value on the face of the check.

8. The system of claim 1 wherein said means for conveying comprises placing said first digital value in a paid issuance file.

9. The system of claim 1 wherein said scanning means includes digital image processing techniques.

10. A banking fraud prevention process using a digital computer and utilized to prevent the submission for payment of checks having information printed on the face of the check altered, comprising the steps of:

converting the printed check information to a first digital value via a predetermined but not publicly known algorithm;

receiving a presented check having said printed check information printed thereon;

converting the presented check information to a second digital value via said predetermined algorithm;

comparing said first digital value and said second digital value to determine whether a match exists; and

when a match does not exist, reconverting said presented check information to a third digital value by iteratively evaluating one or more field positions for which more than one value may exist and using an alternate value to determine said digital third value and comparing said third digital value to said first digital value to determine whether a match exists.

11. The method of claim 10 wherein the printed check information includes information selected from the group consisting of the payee name, account number, check amount, issue date and check number.

12. The method of claim 11 wherein the printed check information includes the payee name, and the step of converting said presented printed check information to said second digital value includes the step of converting the payee name to said numerical value by image capture software.

13. The method of claim 12 wherein the step of converting said payee name to said numerical value includes the step of scanning the presented check by an image camera.

14. The method of claim 10 further including the step of rejecting payment of said presented check when a match does not occur.

15. The method of claim 10 further including the step of keying in the check information by an operator when a match does not occur between said first digital value and said third digital value.

16. The method of claim 10 further comprising the steps of incremental processing a series of preprinted checks in a sequential manner.