In This Article:
Mitek Systems MITK recently expanded its partnership with Alogent, which specializes in offering comprehensive check payment processing and mobile, online and digital banking solutions.
By integrating Mitek’s Check Fraud Defender (CFD) into Alogent’s web-based Unify platform, the collaboration is likely to provide a powerful solution against the rapidly evolving check fraud.
Mitek cited a Federal Reserve Financial Services Survey, which stated that check fraud, such as forgery and counterfeiting, represents 31% of all bank frauds in the United States. The evolution of technology has enabled fraudsters to employ more sophisticated techniques, including the use of AI, to create counterfeit checks, alter legitimate ones and forge signatures. All these impose heavy financial burdens on banks and their customers, with losses in 2024 expected to be higher than the $20 billion mark in 2023.
As check fraud continues to rise, the need for advanced, real-time verification technologies becomes increasingly urgent. Therefore, to address the threats posed by modern check fraud, MITK has engineered the CFD solution. CFD leverages a unique combination of patented imaging science, machine learning and AI to investigate checks from all channels in real-time.
MITK highlighted the power of CFD to detect fraud across multiple deposit channels, including online banking, in-branch deposits and ATMs.
Mitek Systems, Inc. Price and Consensus
Mitek Systems, Inc. price-consensus-chart | Mitek Systems, Inc. Quote
As digital transformation continues to reshape the industry, investment in cutting-edge fraud detection technologies is growing among various financial institutions. MITK aims to capitalize on this emerging trend to mitigate the risk of fraud and protect its clients’ operations.
MITK is a global technology company with expertise in digital identity and fraud prevention. In the last reported quarter, it generated revenues of $45 million compared with $43.1 million in the prior-year quarter, driven by healthy momentum across Software and hardware and Services and other segments. However, the top line missed the Zacks Consensus Estimate by 5.8%. Management remains concerned about the headwinds around its Identity product.
MITK currently carries a Zacks Rank #3 (Hold). Both MITK’s and the industry’s shares have declined 14.3% in the past year.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are Arista Networks, Inc. ANET, Harmonic Inc. HLIT and CommScope Holding Company, Inc. COMM. ANET and HLIT presently sport a Zacks Rank #1 (Strong Buy) each, whereas COMM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.