UAE Banks Federation (UBF) in coordination with UBF IT Committee, hosted a workshop recently, dedicated to UBF member banks to address a new and innovative approach in combatting cheque fraud. The workshop identified proposed improvements to the current cheque verification process, specifically how changes could be made to limit incidences of fraud and support the nation’s move towards becoming a cashless society.
Counterfeit cheques currently expose banks, businesses and customers to financial, reputational and legal risks. Sophisticated printing technologies have pushed incidences of fraud to increase, and UBF member banks are keen to work together to combat this risk.
During the workshop, UBF speakers stated that, going forward, member banks would increasingly seek to make use of QR codes to improve cheque security, introducing enhanced encryption technology to discourage fraud. The new approach will see individual cheques allocated a random number that can then be read electronically during an automated validation process. The number is unique to the specific cheque and will ensure that only legitimate cheques will be honored by banks.
Commenting on the decision by UBF members to embrace this innovative new technology, H.E. AbdulAziz Al Ghurair, said, “We are committed to enhancing the security of the UAE financial system and today’s announcement is further evidence of our collective desire to tackle the issue of cheque fraud.
“By introducing technology that allows us to detect problems in real time, we are confident that we can lessen the impact of fraud on our customers. In addition, these changes will improve operational efficiency, reduce costs and lay the foundations for further innovation that will benefit the banking sector.”