ATLANTA, Nov. 14, 2006 (PRIMEZONE) -- John H. Harland Company (NYSE:JH) will launch Validify(tm), a solution designed to significantly reduce check fraud, in January 2007.
Tri-Counties Bank in Chico, California, which was one of Harland's partners in the original pilot test of Validify, recently implemented the solution to further refine the solution and streamline the integration process. With early results indicating an 85 percent fraud capture rate, Validify is poised to save financial institutions millions of dollars annually, while increasing customer satisfaction and loyalty.
Check fraud is a $5.5 billion problem for financial institutions today and growing. Of this total, forgery accounts for 29 percent of all check fraud, as well as counterfeit checks which account for 21 percent. Validify addresses both types of check fraud by validating the authenticity of the maker's signature and the physical check document before funds are released. Using advanced image processing, data encoding and encryption, digital printing and statistical validation software the solution acts as a fingerprint, comparing the unique qualities of the signature and aspects of the checking account.
Tri-Counties Bank has installed the Validify software and will begin offering checks to its customers with the Validify security feature. "We recognize that fraud is a growing problem, and that's why we're doing all we can to stay ahead of it," said Monica Canchola, vice president of operations administration for Tri-Counties Bank. "We're taking a proactive stance to combat fraud and the Validify solution significantly enhances our efforts."
The Validify security feature is an image-survivable, digitally printed bar code placed in the top left corner of the check. The bar code permits checks to be securely authenticated at any point from presentment to posting. In a recent consumer study commissioned by Harland, 73 percent of respondents indicated strong interest in having a security feature on the actual check.
"Financial institutions across the country are dealing with a growing problem and seek integrated and sophisticated technologies that solve this problem," said Sheila Brosius, vice president of product commercialization with Harland. "We are excited about Validify because it does meet this objective. Validify identifies and mitigates check fraud and is deployable in item processing, branch back counter, at the teller and ATM, stopping the fraud, not just shifting the liability like competing technologies."
Harland check clients will have the opportunity to purchase Validify beginning in January 2007. This solution is the first in a series of fraud prevention capabilities that Harland will offer to help financial institutions combat major types of payment fraud. Validify is designed to work seamlessly with Harland Financial Solutions' EZTeller(r) and Encore(r) teller systems, enabling authentication at the teller window. The company's Item Processing Service is also Validify enabled, making it possible for financial institutions that outsource their item processing to prevent check fraud as well.
Georgian Bank uses Harland Financial Solutions' Item Processing Service, and is taking advantage of the company's integrated fraud capabilities. "Validify adds to our arsenal, providing a unique way for us to proactively and further protect our customers from the growing problem of check fraud and identity theft," said Danny Jett, Executive Vice President, Operations and Administration for Georgian Bank. "We hope that as our peers adopt similar technology, we can all work together to help mitigate check fraud industry-wide."
Harland is demonstrating Validify at the upcoming BAI Retail Delivery Conference & Expo, November 14-16, 2006 in Las Vegas, Nevada at booth No. 917.
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 Harland Financial Solutions
Harland Financial Solutions (www.harlandfinancialsolutions.com) supplies software and services to thousands of financial institutions of all sizes, offering its solutions in both an in-house and service bureau environment. The company is a leader in core systems, item processing, enterprise content management, branch automation, customer relationship management, business intelligence, origination and document solutions, risk management, compliance training, financial accounting, open documents, mortgage solutions, electronic funds transfer (EFT), self service solutions and performance advisory services.
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.