How a regional bank is using ID scanning to deter fraudsters and empower their frontline staff
Paragon Bank, a major regional financial institution, faced persistent challenges in accurately verifying customer identities and detecting fraudulent IDs. Relying on manual visual inspection made it difficult to catch high-quality fake IDs, resulting in financial losses and operational inefficiencies.
Consequences of manual ID verification
Before using ParseLink, Paragon Bank’s tellers manually inspected driver’s licenses and other IDs for signs of tampering. This method was inconsistent, time-consuming, and often ineffective against sophisticated fake IDs.
The consequences of this process were significant:
- Fraudulent accounts were opened using synthetic identities
- Altered checks were cashed
- Financial losses impacted both customers and the bank
Compounding the problem, Paragon’s previous scanners produced poor image quality and required tellers to leave their stations to complete scans, disrupting workflows and frustrating customers.
The banking industry has long relied on a mix of document-based verification (e.g., copying driver’s licenses, passports, birth certificates) and knowledge-based authentication (e.g., requesting SSNs, addresses, account numbers). While these methods help in some cases, they often fall short when facing sophisticated identity fraud schemes.
ParseLink Authentication for Banks
After evaluating multiple options, Paragon Bank selected ParseLink ID Authentication for its
- Ease of use and intuitive process for tellers
- Competitive pricing, making it cost-effective for full deployment
- Seamless integration with the bank’s core systems
The bank equipped every teller station with ParseLink ID Authentication paired with E-Seek M500 scanners, enabling instant ID validation and high-quality image capture.
A typical high-risk transaction workflow at Paragon Bank with ParseLink Authentication includes:
- Collect a valid, unexpired ID (driver’s license or passport)
- Verify personal details (photo match, date of birth, etc.)
- Request a second opinion from management if needed
- Obtain a second form of ID when appropriate
The results
“Paragon feels like we received good value for the investment and expect to recoup the costs with increased ease of detection of identity fraud.”
Kingston Blenis, Senior Vice President of Information Technology and Deposit Operations, Paragon Bank
Since implementing ParseLink, Paragon Bank has:
- Eliminated incidents of fraudulent IDs being accepted
- Reduced risk of fraudulent accounts and check fraud
- Improved teller efficiency with automated data entry using ParseLink’s scripting tool, which extracts ID data and enters it directly into the customer onboarding system
- Enhanced customer experience by reducing time spent on verification while increasing trust in the process
Paragon Bank now encounters fraudulent IDs very rarely, about two to three times per year, and can confidently detect and reject them.
