DENVER--(EON: Enhanced Online News)--CTS North America, a market leader in providing financial institutions with branch automation and merchant cash and check processing solutions, announced today at the 2013 BAI Retail Delivery Conference that Citizens State Bank Norwood Young America ($85 million in assets) has deployed CTS’ LS150 scanner equipped with Identification Verification Systems’ (IVS) SNARE software, enabling the bank to immediately validate government-issued IDs when presented by new and existing customers.
“The LS150 provides these institutions with industry-leading teller check capture capabilities plus a cost-effective tool to combat fraud while avoiding the headaches of a system overhaul. With one device, banks can prevent fraud losses while streamlining the validation, storing and filing of customers’ ID cards.”
When a customer is opening a new account or requests to cash a check, he or she must present a government-issued ID in order to open the account or process the check. This common practice actually puts financial institutions at significant risk however, because unless the customer’s ID is also authenticated, he or she can easily perpetrate fraud.
With CTS’ LS150 and IVS’ SNARE software, Citizens State Bank’s tellers have the capability to detect fraudulent IDs and therefore prevent fraud at the point of initial contact. In addition, the software also stores and tracks the IDs’ expiration dates, allowing Citizens State Bank to alert its customers when an ID will need to be renewed.
In addition, the LS150 and SNARE software ensure that the bank remains fully compliant with the recently amended UCC Article 9, which standardizes borrower information on UCC financing statements. To date, 28 states have adopted the amendment in an effort to prioritize lien positions on collateral for specific types of loans. Failure to comply with the newly adopted naming requirements of UCC Article 9 could result in the bank losing its lien position and forfeiture of collateral to a subsequent creditor.
“It is critical that our check scanners go beyond a simple photocopy of a customer’s ID as a small handful of fraudulent transactions can result in significant, unrecoverable losses,” said Perry Forst, president and CEO of Citizens State Bank. “The SNARE-equipped LS150 scanner not only stores and files the ID image, but it validates the ID’s authenticity to effectively prevent fraud. We also have the capability to provide our customers with a convenient reminder of when their ID is about to expire, which keeps our records updated and compliant.”
“Many of today’s scanners are outdated and ill-equipped to fight evolving types of fraud, and unfortunately many financial institutions mistakenly view new integrations as cost-prohibitive,” said Glen Fossella, COO of CTS North America. “The LS150 provides these institutions with industry-leading teller check capture capabilities plus a cost-effective tool to combat fraud while avoiding the headaches of a system overhaul. With one device, banks can prevent fraud losses while streamlining the validation, storing and filing of customers’ ID cards.”
About Citizens State Bank Norwood Young America
Citizens State Bank Norwood Young America, Minnesota, is an $85 million independent bank in a community of 3,800 citizens located adjacent to the Minneapolis St. Paul metropolitan area. Perry Forst, president and CEO, is only the sixth president since the bank was founded on June 20, 1914. The bank provides products, services and delivery channels that complement its customers’ lifestyles. The bank’s innovative offerings continually evolve to meet the needs of its customers.
About CTS North America
CTS North America is a market leader in providing financial institutions with branch automation and merchant cash and check processing solutions. Its parent company, CTS Electronics, is a global provider of automated systems for payments, document processing, cash recycling and deposits. CTS has more than one million peripherals installed across five continents, including more than 500,000 document readers and check scanners worldwide. Additional information is available online at www.ctsna.com.