Document Security Systems Inc. Announces New Electronic Check 21
Protection Technology for the Banking Industry
ROCHESTER, N.Y., Sept. 8 /PRNewswire-FirstCall/ -- Document Security Systems,
Inc. (AMEX:DMCAMEX:-AMEX:News) announced today that it has created a hidden
security image for checks that can be read by the banking industry's current
check processing equipment.
Under a new Federal Reserve regulation called "Check 21" that takes effect in
October, banks where checks are deposited will no longer be required to return
the original paper check to the bank on which the check has been drawn. Instead, the originating bank will receive only electronic images or scans of
its checks from the banks at which the checks have been deposited. Until now,
there has been no known security feature that has been able to survive the
scanning process on the current generation of check processing equipment used
by the banking industry, thereby leading to concerns over the potential for
increased check fraud once the new "Check 21" regulation goes into effect.
"The banking industry has been trying to find a cost effective security feature
that can survive the imaging process on the check processing technology
currently in use, and we have it," said Patrick White, Chief Executive Officer
and President of Document Security Systems, Inc. "Our new 'Survivor 21' check
pantograph technology will allow originating banks to assure the authenticity
of the new electronic checks that will become standard under the upcoming
'Check 21' regulations. An important element of 'Survivor 21' is that no
expensive software or hardware will be necessary to utilize it. All that will
be necessary is for a bank's check printer to print a background pattern
(sometimes called a pantograph) on the face of the check that incorporates our
new patent-pending 'Survivor 21' technology." Tom Wicker, Chief Technology Officer of Document Systems and the inventor of
the new patent pending "Survivor 21" technology, said: "We have tested the
'Survivor 21' pantograph on the older 100 bit map check processors as well as
the new generation of high resolution scanners and our new hidden security
feature is surviving the scans every time. This is significant because it
means the banking industry will not have to convert or upgrade their current
check processing equipment. The only thing a bank would have to do is to
change the printing of the check itself by directing their check printer to
incorporate 'Survivor 21' into the printing process. The fact that the banking
industry will not have to invest in new and expensive software and hardware
detection systems is a very important benefit from our new technology." Patrick White also said, "We are currently in discussions with leading security
printers and imaging equipment manufacturing companies for the licensing of
this technology, some of whom have already tested 'Survivor 21'. We are also
licensing our technology directly to end-users, such as banks and payroll
companies, thereby giving them the freedom to use the security printer of their
choice." According to a study issued by Standard Register on March 17, 2004, "While
Check 21 will significantly speed the handling and collection of checks, the
potential for enormous unprosecutable check fraud losses is nearly certain as
the conversion process destroys the evidence of fraud in most cases....For this
reason, the search for effective image survivable security features is a high
priority....The 'Holy Grail' of image-survivable security technology is a
feature or features that could be authenticated using images already captured
as the 'normal' part of the sorting process. Such a solution would require no
additional expenses or modifications to the different hardware platforms
already in place." Tom Wicker, Chief Technology Officer of Document Security Systems, said: "If
the technology described above by Standard Register is indeed the 'Holy Grail'
of image-survivable technology, then we have it." Safe Harbor Statement This release contains forward-looking statements regarding expectations for
future financial performance, which involve uncertainty and risk. It is
possible the Company's future financial performance may differ from
expectations due to a variety of factors including, but not limited to, changes
in economic and business conditions in the world, increased competitive
activity, achieving sales levels to fulfill revenue expectations, consolidation
among its competitors and customers, technology advancements, unexpected costs
and charges, adequate funding for plans, changes in interest and foreign
exchange rates, regulatory and other approvals and failure to implement all
plans, for whatever reason. It is not possible to foresee or identify all such
factors. Any forward-looking statements in this report are based on current
conditions; expected future developments and other factors it believes are
appropriate in the circumstances. Prospective investors are cautioned that such
statements are not a guarantee of future performance and actual results or
developments may differ materially from those projected. The Company makes no
commitment to update any forward-looking statement included herein, or disclose
any facts, events or circumstances that may affect the accuracy of any
forward-looking statement.
For Licensing or other information contact:
Contact: Cherrie Mahon
Company: Document Security Systems, Inc. Title: Shareholder Relations
Voice: 800-930-6788
Fax: 585-232-5960
Email: Websites: http://www.documentsecurity.com/
http://www.safetypaper.com/
http://www.legalstore.com/
http://www.patrickprinting.com/ Websites: http://www.documentsecurity.com http://www.safetypaper.com http://www.legalstore.com http://www.patrickprinting.com DATASOURCE: Document Security Systems, Inc.
CONTACT: Cherrie Mahon, Shareholder Relations of Document Security Systems, Inc., +1-800-930-6788, Fax: +1-585-232-5960,
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