Automated Check Cashing Risk Scoring via Image Analysis
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Solution Overview
Problem
Conventional automated teller machines lack the capability to reliably assess and prevent unauthorized check cashing transactions due to insufficient speed and computing power, and often fail to determine if a check has been previously presented for cashing or is counterfeit.
Innovation Solution
An automated transaction device captures check image data and transmits it to a check cashing computing platform, which applies specific rules to determine a check cashing risk score, deciding whether to cash the check based on the score, and may request additional information from a third party vendor if the account is not associated with the financial institution.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If conventional automated teller machines provide check cashing functionality, then banking efficiency is improved, but the ability to reliably assess unauthorized activity is insufficient
Solution Approach 1:
The patent introduces a teller as an intermediary between the automated teller machine and the check cashing process. The teller performs photo identification verification and assesses unauthorized activity risk, bridging the gap between automated efficiency and reliable security assessment. This intermediary resolves the contradiction by maintaining the automated machine's productivity while adding human judgment for reliability.
2Reliability
If automated teller machines perform comprehensive check verification, then security is improved, but processing speed decreases
Solution Approach 1:
The system performs preliminary actions by capturing and storing photo identification data and check images during the transaction process. This preliminary capture of verification data enables comprehensive security checks without significantly delaying the transaction, as the verification processes are initiated and processed in parallel with the cashing operation.
Solution Approach 2:
The patent replaces manual verification processes with automated image capture and electronic record-keeping systems. Instead of physical document handling and manual comparison, the system uses digital imaging and electronic storage to perform comprehensive verifications quickly, maintaining security while improving processing speed.
3Device complexity
If automated teller machines lack photo identification capability, then device complexity is reduced, but unauthorized check cashing prevention is insufficient
Solution Approach 1:
The teller serves as an intermediary who performs photo identification verification using separate identification equipment. This approach adds unauthorized check cashing prevention capability without significantly increasing the complexity of the automated teller machine itself, as the identification function is performed by the intermediary using dedicated tools.
Data Source
AI summary
Methods, systems, and computer-readable media for determining whether a check may be cashed at an automated teller machine (ATM) are provided. The ATM may capture check image data from the face of the check and the ATM may transmit the data to a check cashing computing platform. The check cashing computing platform may determine whether the account on which the check is drawn is an account of a first financial institution associated with the ATM, or the account is an account of a second financial institution. A first or second set of rules may be applied to the check based on this determination, to determine an overall check cashing risk score. A determination is then made, based on the overall check cashing risk score, as to whether the check may be cashed or the request to cash the check may be denied.