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What Is An Image Survivable Feature (ISF)?
July 17 2020Major banks have now all requested that an Image Survivable Feature (ISF), such as a UCN, be included on all cheques as soon as possible to help reduce the incidence of fraud. But what is it?
CHEQUE FRAUD
Since the introduction of the new Image Clearing System (ICS) by UK banks in October 2017, there has been an increase in cheque fraud losses. According to the annual UK Finance report ‘Fraud – The Facts’, cheque fraud losses increased to £20.6 million in 2018 and again to £53.6 million in 2019. These were the first rises in cheque fraud reported for seven years.
CHEQUE FRAUD PREVENTION & IMAGE SURVIVABLE FEATURES
The addition of an Image Survivable Feature (ISF) onto the face of the cheque can greatly help with fraud prevention. An ISF can enable the cheque data to be captured and encrypted within a unique coded number (UCN) that is printed onto the cheque along with the MICR code line, thereby ensuring the validation of the item when the image is scanned within the ICS. Counterfeit items can then be more readily identified.
WHAT IS A UCN?
A UCN is an ISF consisting of an encrypted code number printed on the face of the cheque. A UCN provides the bank and its cheque-issuing corporate customers with a robust and comprehensive cheque fraud prevention method which fully survives the imaging process of the ICS.
UCN & ‘SPECIAL’ CORPORATE CHEQUES
A1 Security Print can now add a UCN to special corporate cheques which has been tested and approved by HSBC, Lloyds Group & Nat West/RBS. These banks have all requested that an ISF, such as a UCN, be included on all cheques as soon as possible to help reduce the incidence of fraud. We encrypt the individual Cheque Number, Sort Code and Account Number into a simple alphanumeric string using a secure encryption algorithm which is printed onto the cheque in two designated positions. The UCN is always printed in two locations to ensure capture even if a receipt stamp has been used or it is otherwise obscured.
The UCN is validated during the clearing process against the actual image of the cheque and any discrepancies are automatically flagged for review by fraud prevention operatives in the clearing system. As an Image Survivable Feature, the UCN will remain visible on the cheque after scanning and the cheque image passed into the new image-based clearing system for processing.
The end result is comprehensive validation and protection against counterfeit cheques.
WHAT TO DO NEXT?
A1 Security Print will arrange every step of the process for you. We will arrange the programming to create the UCN and ensure that the format and positioning of the UCN is fully compliant for processing through the ICS.
We will arrange design proofs for you and advise of any changes which may be required to the cheque layout to accommodate the UCN. We will also ensure that any designs are updated to the latest Pay.UK accredited cheque standards.
Please get in touch with your Account Manager or call us on +44 (0) 121 554 0044 to find out more