Banks Are Now Embracing The Newer And Tougher Signature Verification System
Every branch of every bank maintains customer signatures on index cards or similar documents. These cards are physically stored in boxes or cabinets and require a person to physically search them for a specific client’s signature card. This process takes time, increases overhead, and also leaves the cards at risk from fire, flood, or simply being lost or misfiled. In addition, a client’s signature card is only available at the specific branch where the account was opened. This makes it difficult to conduct some transactions at branches other than the ‘home branch’.
Signature verification systems offer comprehensive and highly secure electronic solutions, which allow signature cards to be digitalized and easily managed for single and multiple branch banking, These security systems provide check and signature verification technologies to help guard against fraud and identity theft.
Larger banking institutions tend to use a double layer method of signature verification. For transactions that only involve a small sum of money such as payment for utility bills or withdrawals for everyday use, banks will commonly use verification system software designed by an independent vendor or contractor.
For transactions that involve a large sum of money and are therefore more conspicuous, a second layer of verification software designed by a bank’s in-house technical security group are used. This internal software is unique and provides a double layer of protection that significantly cuts down on cases of fraud.