Banks are also protected against forgery by encoding information onto the cheque using 2D barcodes. This offers additional security benefit, in that even if a forger was able to detect the presence of this bar code, she/he would not be able to discover the contents or change to reproduce a valid authentication code.
NIFT will facilitate users through a composite bundled package in the form of check writing software and secure TROY printers:
1. The secure software will harness this printing with capabilities of printing cheque information in conjunction with an encrypted 2D bar Code and a MICR line on the instrument.
2. The software will be secured through PKI security allowing use of this software only on one designated system for each copy of software provided. Additionally, NIFT software will support printing only on registered TROY printer which has been purchased from NIFT – this will inhibit fraudulent use of this facility. Furthermore, the 2D bar codes printed printer on this system will be encrypted using the digital signature securing the system.
3. Cheque's unique information like account number, serial number, date of issue, amount, paying bank branch code payee name etc. will be hidden within a graphic unreadable to the human eye. Secured with PKI encryption, this will constitute amongst the strongest available measures of protection against forgery.
4. The TROY printer is a robust machine built to protect the stationery with a secure locking arrangement and control over printing of MICR line selectively through program control, thereby preventing irregular printing through single insert slot.
5. The software will not print cheque information again. Use of digital protection adds immense value to the system. While the private key of the signature will be available only to the holder branch; the Public key can be made available to all clearing members thus verification through capture and inward clearing systems will ease will yield a positive impact and defeat attempts of frauds on instruments on like banker’s cheques, drafts, pay orders, term and call deposit receipts and other such instruments.