Check fraud detection techniques using encrypted payee information
First Claim
1. A system for determining whether payee information on a check has been improperly modified after the original preparation of the check, the system comprising:
- a first computing mechanism for receiving and storing payee information for printing on a check;
the payee information comprising an alphabetic portion specifying a payee name and a numeric portion specifying at least a payment amount;
the first computing mechanism further including a conversion mechanism for converting said alphabetic portion of said printed payee information to an encrypted first digitized value;
for converting said numeric portion of said printed payee information to an encrypted second digitized value; and
for combining said first and second digitized values into an encrypted third digitized value for processing in a digital computer;
a second computing mechanism for receiving information about said check, including a scanning mechanism to convert the alphabetic portion of the printed payee information to a fourth digitized value, and to convert the numeric portion of the printed payee information to a fifth digitized value;
the computing mechanism combining the fourth and fifth digitized values into an encrypted sixth digitized value; and
the second computing mechanism further comprising a comparison mechanism for comparing the third digitized value with the sixth digitized value so as to thereby determine whether the printed payee information on said check has been changed.
1 Assignment
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Accused Products
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.
127 Citations
19 Claims
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1. A system for determining whether payee information on a check has been improperly modified after the original preparation of the check, the system comprising:
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a first computing mechanism for receiving and storing payee information for printing on a check;
the payee information comprising an alphabetic portion specifying a payee name and a numeric portion specifying at least a payment amount;
the first computing mechanism further including a conversion mechanism for converting said alphabetic portion of said printed payee information to an encrypted first digitized value;
for converting said numeric portion of said printed payee information to an encrypted second digitized value; and
for combining said first and second digitized values into an encrypted third digitized value for processing in a digital computer;
a second computing mechanism for receiving information about said check, including a scanning mechanism to convert the alphabetic portion of the printed payee information to a fourth digitized value, and to convert the numeric portion of the printed payee information to a fifth digitized value;
the computing mechanism combining the fourth and fifth digitized values into an encrypted sixth digitized value; and
the second computing mechanism further comprising a comparison mechanism for comparing the third digitized value with the sixth digitized value so as to thereby determine whether the printed payee information on said check has been changed. - View Dependent Claims (2, 3, 4, 5)
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6. A banking fraud prevention process using a digital computer and utilized to prevent the submission for payment of a check having payee information altered, the payee information comprising at least an alphabetic portion specifying a payee name and a numeric portion specifying at least a payment amount, the method comprising the steps of:
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transforming the alphabetic portion into a first numerical value, transforming the numeric portion into a second numerical value, and transforming the first and second numerical values into a third numerical value comprising an encoded payee identifier, wherein the transformations are performed via a predetermined algorithm; and
wherein the encoded payee identifier is printed on the check;
receiving said payee identifier;
receiving a presented check having a payee'"'"'s as-presented information printed thereon;
the payee'"'"'s as-presented information comprising at least an alphabetic portion specifying an as-presented payee name, a numeric portion specifying at least an as-presented payment amount, and an as-presented encoded payee identifier;
converting the alphabetic portion of the payee'"'"'s as-presented information to a first digital value via said predetermined algorithm;
converting the numeric portion of the payee'"'"'s as-presented information to a second digital value via said predetermined algorithm; and
combining the first and second digital values, using the predetermined algorithm, to generate a third digital value;
comparing said as-presented encoded payee identifier with the third digital value to determine whether a match exists. - View Dependent Claims (7, 8, 9, 10, 11)
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12. A system for confirming check accuracy and preventing altered checks from being honored;
- said system comprising;
a. a first computing mechanism for generating checks corresponding to accounts and payment obligations wherein each check has printed payee information comprising at least an alphabetic portion and a numeric portion;
b. the computing mechanism further comprising a calculation mechanism for calculating an encrypted numeric value corresponding to payee information and for identifying a transformation algorithm used for encryption;
wherein the encrypted numeric value is determined by calculating a first numeric value from the alphabetic portion, calculating a second numeric value from the numeric portion, and combining the first and second numeric values to generate an encrypted numeric value;
c. a communications mechanism for conveying said numeric value and the identified transformation algorithm to one or more drawee banks; and
d. a printing mechanism for printing said checks for distribution to the payees. - View Dependent Claims (13, 14)
- said system comprising;
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15. A data processing system for the detection of altered checks as presented at a drawee bank for disbursement, said system comprising:
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a first computing mechanism for printing a plurality of individual checks wherein said checks include payee information on the check face;
the payee information comprising at least an alphabetic portion and a numeric portion;
said computing mechanism further comprising a data processing mechanism for encrypting the alphabetic portion to form a first numeric value, encrypting the numeric portion to form a second numeric value, and combining the first and second numeric values to form a first encrypted digitized value; and
a second computing mechanism for processing checks submitted for payment, including a receiver for receiving said encrypted digitized value, and a scanning mechanism for generating a second encrypted digitized value corresponding to said selected payee information;
said second computing mechanism further comprising a comparison mechanism for comparing said first and second encrypted digitized values to discern whether said values match. - View Dependent Claims (16, 17, 18, 19)
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Specification