ATLANTA, Nov. 9, 2005 (PRIMEZONE) -- Every year, millions of consumers fall victim to identity theft, which according to the Federal Trade Commission is the nation's fastest-growing crime. Based on research conducted by John H. Harland Company (NYSE:JH), 70% of consumers would be more likely to do business with a financial institution that offers protection against check fraud and identity theft.
To address this growing need, Harland announced today the release of its Validify(tm) solution for fraud prevention, which was jointly developed with Mitek Systems, the leader in image analytics. During rigorous pilot testing, the company's patent-pending technology captured up to 85% of forged and counterfeit checks. Validify is just the first in a suite of fraud prevention capabilities that Harland will be rolling out to provide financial institutions a way to combat major types of payments fraud, a common concern of their customers.
Harland is unveiling the new solution at the upcoming BAI Retail Delivery Conference & Expo, November 15-18, 2005 in Orlando, Fla., at booth No. 1545.
"Our pilot test results indicate users can expect to eliminate at least 85% of their check fraud losses due to forgeries and counterfeiting," said Kevin Lee, president of Harland's Services and Payment Solutions division. "Most importantly, we're not only talking about saving the industry hundreds of millions of dollars per year, but also about protecting the identity and assets of individual financial institution customers, and consumers in general."
The comprehensive solution specifically addresses the most difficult-to-catch type of check fraud: the forgery of the maker's signature. Employing advanced image processing, data encoding and encryption, digital printing and statistical validation software, Validify will enable financial institutions and merchants to validate the authenticity of the maker's signature and physical check document. The combination of an image-survivable, Check 21-compatible digitally printed security feature and sophisticated software ensures the check can be securely authenticated at any point of presentment.
Committed to partnering with industry leaders, Harland experimented with technology using various transport and imaging devices from providers such as Digital Check, IBM, NCR and UNISYS. Harland also secured the participation of several financial institutions of varying sizes who piloted the technology. Harland currently is engaged in discussions with a number of credit union clients about pilot testing.
Executive Vice President and CIO Dan Butler of West Georgia National Bank said, "We are committed to helping protect the identity of our customers. Harland's technology really appealed to us because it allows us to capture the vast majority of forged or counterfeit checks before they hit our customers' accounts. We believe our customers will genuinely appreciate the added security they get by banking with us and by using Harland checks."
"We have been a partner of Harland's for many years, and we have come to appreciate their efforts and the company's innovation and forward thinking strategy," said Monica Canchola, vice president operations administration, Tri Counties Bank in Chico, California. "We believe this solution will become an important industry initiative that significantly impacts the way we do business and successfully addresses security concerns surrounding fraudulent checks and identity theft."
Harland is confident this technology will be equally appealing to merchants who, like financial institutions, lose billions of dollars each year as a result of lost, stolen or counterfeit checks. The company is presently in discussions with major retailers about entering a pilot testing phase focused on enabling them to use the technology at the point of sale.
"Over 40 billion checks are signed every year in America today. This is the first solution to enable a real-time validation of a signature anywhere a check is presented for payment," said James DeBello, chief executive officer of Mitek Systems. "Mitek is very pleased to work with Harland to introduce this capability to protect consumers against check fraud." In 2004, Harland acquired a 20 percent ownership stake in Mitek.
Harland will begin marketing and selling its Validify solution to its check clients in early 2006 and will be pursuing licensing opportunities with other providers in the check printing, presentment, processing and imaging industries.
"We are pleased to have been actively involved in the piloting phase of this solution," said Chuck Tufts, executive vice president of retail services, U.S. Bank. "As a result of our participation, we witnessed first-hand the capabilities of Validify to accurately and effectively detect a majority of the forged checks presented in the simulated test environment. This improved ability to pre-empt fraud should certainly impact financial institutions by helping to reduce annual check fraud related losses."
About Harland
Atlanta-based John H. Harland Company (NYSE:JH) (http://www.harland.net) is a leading provider of software and printed products to the financial and educational markets. Harland Financial Solutions, Inc. (http://www.harlandfinancialsolutions.com), a wholly owned subsidiary, supplies software and services, including customer relationship management, deposit and loan origination, core systems and mortgage services to thousands of financial institutions of all sizes. Harland Printed Products' offerings include checks, direct marketing and financial forms. Scantron Corporation (http://www.scantron.com), a wholly owned subsidiary, is a leading provider of both paper and electronic-based services and systems for the collection, management and interpretation of data to the financial, commercial and educational markets.
About Mitek Systems
Mitek Systems (OTCBB:MITK) (www.miteksystems.com) is a global leader in Image Analytics used by financial institutions to detect fraud and improve customer service. The Company also develops and markets the most comprehensive suite of intelligent character recognition software used to test, clean, read and authenticate imaged documents. Sold to partners and directly to end users, the Company's software is used in the processing of over 8 billion transactions per year. For more information about Mitek Systems, contact the company at 14145 Danielson Street, Suite B, Poway, CA 92064; 858-513-4600 or visit www.miteksystems.com.
Validify is a trademark of John H. Harland Company. All other brands and products or services are trademarks and/or service marks of their respective owners, may be registered and should be treated appropriately.
This press release contains statements, which may constitute "forward-looking statements." These statements include statements regarding the intent, belief or current expectations of John H. Harland Company and members of its respective management, as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those contemplated by such forward-looking statements. Reference is made to the Risk Factors and Cautionary Statements in Harland's Form 10-K and Form 10-Q filed under the Securities Exchange Act.