Carreker Corporation Press Release - January 6, 1999

CIBC Detects Check Fraud with Carreker-Antinori Software: First Bank in Canada to Use Leading Technology to Detect Check Fraud

(Toronto, Canada January 6, 1999) - Passing fraudulent checks is a little more difficult since CIBC installed Carreker-Antinori’s (NASDAQ: CANI) on-us check fraud system late last year, becoming the first bank in Canada to use on-us check fraud technology. Within the first month of installing the check fraud detection system and process, CIBC detected and defused its first fraud.

"This new system extends CIBC’s capability quite dramatically for detecting check fraud," says Ross McKay, vice president, CIBC Business Banking Services. "Without it, CIBC may have had some difficulty detecting the fraud until the customer reported a discrepancy, which is often too late."

While the dollars involved in the frauds detected so far with the new system have not been huge, McKay says it shows the system and processes are working. "We’ve received nothing but very positive feedback from customers we’ve contacted in order to verify any suspect items detected by the system," adds McKay. "It’s reassuring to our customers that CIBC is taking further steps to combat this growing problem."

The system, purchased from Dallas-based Carreker-Antinori, was installed by INTRIA Items Inc., an items processing joint venture of CIBC and Milwaukee based Fiserv Inc., to deal with what is known in banking circles as "on-us" check fraud. With on-us fraud, the account holder becomes the victim of someone who has stolen or, more likely, falsified his or her checks.

"On-us check fraud can be most daunting for a bank because the perpetrator is never seen," says Bob McCole, senior vice president, INTRIA Items Inc. "With this new system and process we hope to increase our odds of recovery for our customers’ individual and business accounts by detecting fraud earlier than we would have and preventing future occurrences."

While electronic banking builds in popularity, checks continue to be the predominant method for making payments today, with more than five million checks being cleared each day by Canada’s banks. In Canada, check fraud accounted for 40 per cent of all fraud reported to police in 1996, the most recent statistics available. Most check fraud losses go unreported.

"We welcome this initiative," says Bob Hammond of the Canadian Payments Association, the organization responsible for operating Canada’s clearing and settlement system. "Any action to reduce check fraud contributes significantly to the continuing efficiency and safety of Canada’s payments system."

The technology uses a set of rules that are based on behavior patterns of counterfeit activity. These rules are applied against all items presented for clearing through CIBC. Checks falling outside of these rules are set aside for further scrutiny by the bank.

CIBC is one of North America’s leading financial institutions. CIBC offers a full range of products and services through its electronic banking network and branches and across Canada and offices around the world.

For additional information, please contact Public Relations, Carreker-Antinori, (800) 486-1981, Ross McKay, CIBC, (416) 214-8014 or Bob McCole, CIBC (416) 861-3255.