Check Segmentation for Re-presentment Fraud Detection

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Solution Overview

Problem

Conventional methods fail to effectively detect and deter check re-presentment fraud, which poses liability for financial services institutions, as they rely on matching deposit amounts and MICR lines, making it difficult to identify re-deposited checks.

Innovation Solution

The user separates a check into portions by cutting or tearing, generating digital images of these portions, which are then processed by the institution to create a combined image for deposit, or by punching holes/marks on the check, allowing for easier detection and processing, thereby deterring re-presentment.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If conventional techniques match deposit amounts and MICR lines to detect re-presentment, then detection capability is maintained at basic level, but fraud detection reliability is insufficient

Engineering Contradiction:

Improvefraud detection reliabilityVSAvoiddetection system complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The check image is segmented into multiple portions (e.g., top, bottom, left, right sections) and each portion is independently analyzed. The system divides the check into regions and extracts features from each region separately, then combines these features for comprehensive fraud detection. This segmentation approach enhances detection reliability by examining multiple aspects of the check independently.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The system creates digital copies of check portions and compares these copies against each other and against previously deposited checks. By generating and analyzing multiple digital representations (original image, segmented portions, reconstructed images), the system improves fraud detection capability through comparative analysis of these copies.

Inventive Principle:

Principle #26Copying

2Reliability

If the check is separated into portions by cutting or tearing, then re-presentment detection becomes more difficult for fraudsters, but the ease of operation for legitimate deposits decreases

Engineering Contradiction:

Improvere-presentment detectionVSAvoiddeposit operation ease

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The check is physically segmented into portions that are then scanned separately. Each portion is captured as an individual image, and the system automatically reassembles these segments into a complete check image for processing. This segmentation makes it difficult for fraudsters to reuse check portions while maintaining ease of operation through automated digital reassembly.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The physical act of cutting or tearing the check is replaced with digital image processing techniques. Instead of requiring physical manipulation, the system uses software to divide the check image into portions, analyze them separately, and recombine them digitally. This substitution maintains security while significantly improving ease of operation.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Reliability

If digital images of check portions are generated and combined, then the ability to detect re-presentment is enhanced, but the processing time and complexity increase

Engineering Contradiction:

Improvecheck fraud detectionVSAvoidprocessing time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The check is segmented into portions and digital images of each portion are captured and stored in advance before the actual deposit processing. This preliminary segmentation and imaging allows the system to pre-analyze check portions and quickly assemble them during the actual deposit transaction, reducing processing time while maintaining enhanced detection capabilities.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

Digital copies of check portions are created and stored, allowing rapid retrieval and comparison during deposit processing. Instead of re-scanning or re-processing physical check portions, the system uses pre-created digital copies, significantly reducing processing time while maintaining the ability to perform comprehensive fraud detection analysis.

Inventive Principle:

Principle #26Copying

Data Source

PatentUS7620604B1Systems and methods of check re-presentment deterrent

Publication Date: 2009.11.17 UNITED SERVICES AUTOMOBILE ASSOCIATION (USAA)

AI summary

A user or a device may separate a check into two or more portions prior to generating a digital image of the check for remote deposit of the check. The user or a device may separate the check by cutting or tearing the check. After separating the check into the portions, the user may generate a digital image of the portions of the check using a scanner for example. The digital image may be transmitted to an institution for deposit of the check. The institution may retrieve the images of the portions of the check and generate an image of the check based on the portions, by combining the images of the portions for example. The image of the check that may be generated based on the images of the portions may be processed for deposit.