CSI rolls out check fraud detection for NuPoint clients

PADUCAH, Ky. - CSI, a provider of financial technology solutions, has introduced a new check fraud detection tool for NuPoint® customers, aiming to combat the significant rise in check fraud incidents. The solution, powered by Mitek Systems (NASDAQ:MITK) technology, offers real-time fraud detection capabilities for bank tellers, with additional analyses for alternative deposit methods conducted overnight.

The check fraud detection solution is a response to a 90% increase in check fraud-related suspicious activity reports from 2021 to 2023, with persistent occurrences into 2024. CSI’s tool utilizes Mitek’s consortium data, encompassing millions of consumers, to enhance check fraud detection rates and streamline the review process. It provides community banks with instant detection of possible fraudulent transactions by analyzing high-resolution images of checks against 24 scorable attributes.

Steve Sanders, CSI’s chief risk and information security officer, highlighted the importance of consistent protection against increasingly sophisticated check fraud schemes. The solution is the first to offer such advanced fraud prevention at the teller line, leveraging computer vision and artificial intelligence to minimize fraud losses.

Mitek Systems (NASDAQ: MITK), a leader in digital identity verification with a market capitalization of $470 million, has partnered with CSI to incorporate its Check Fraud Defender into the NuPoint solution. The company maintains impressive gross profit margins of 86% and strong liquidity, with current assets more than four times its short-term obligations. According to InvestingPro analysis, Mitek Systems is currently trading below its Fair Value. Michael Diamond, Mitek’s senior vice president and general manager, expressed enthusiasm for the collaboration, which enables more banks to instantly detect fraud, thus reinforcing in-branch security.

The new check fraud detection tool learns and adapts through consortium sharing, offering varying levels of fraud protection and the potential to anticipate future fraud trends. Analysts can use the system to compare check attributes with profiles stored in a secure, cloud-hosted environment that uses end-to-end encryption and complies with ISO 27001-certified security protocols. Want deeper insights into Mitek Systems’ financial health and growth potential? InvestingPro subscribers get access to over 10 exclusive ProTips and comprehensive financial analysis, including detailed Fair Value calculations and expert research reports.

This development represents CSI’s commitment to providing cutting-edge solutions to its customers, which include community and regional banks, as well as other organizations worldwide. CSI has a nearly 60-year history of personalized service and is known for deploying advanced technologies that help customers compete in their respective markets. For Mitek Systems, analysts maintain a bullish outlook with a consensus recommendation of 1.67 (Strong Buy), supported by the company’s annual revenue of $172 million and consistent profitability. Access the complete Pro Research Report and detailed financial metrics through InvestingPro’s comprehensive coverage of over 1,400 US stocks.

The information in this article is based on a press release statement.

In other recent news, Mitek Systems announced a new executive incentive program. The program, approved by the Board of Directors, aims to offer cash bonuses based on the achievement of specific performance goals for the fiscal year ending in September 2025. The plan is structured around two key financial metrics: revenue and adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA).

In addition, Mitek Systems’ F4Q24 operating results were recently disclosed, with the company reporting revenue of $43.2 million, exceeding the forecast of $41.2 million. The company also outlined a strategic plan for operational improvements in FY25 and a return to profitable growth in FY26. Analyst firm H.C. Wainwright has shown confidence in the company’s strategic direction by maintaining a Buy rating on Mitek Systems’ stock and raising the price target from $11.00 to $13.00.

Lastly, Mitek Systems reported adjusted earnings per share of $0.33 for the quarter ended September 30, 2024, surpassing the analyst estimate of $0.17. The company’s adjusted EBITDA for the quarter was $15.4 million, compared to $5.9 million a year ago, with the adjusted EBITDA margin expanding to 36% from 16% in the prior year period. These recent developments reflect Mitek Systems’ focus on performance and shareholder value.

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