Bank of Boston implements innovative technology to combat check fraud; Check Detect(TM) is second product in series of imaged-based cash management solutions.

BOSTON, Mass--(BUSINESS WIRE)--Nov. 6, 1995--Fraudulent checks, which cost U.S. businesses $10 billion a year(a), will be easier to spot with Check Detect(TM), a Windows-based software solution developed by Bank of Boston that combines the latest data and imaging technology with the bank's years of anti-fraud experience.

Unveiled today, Check Detect provides corporate customers with on-line access to check images (front and back) and associated detail information for all positive pay(b) suspect items as well as the capability to electronically communicate pay/return decisions back to the bank. Bank of Boston is one of only a dozen banks nationwide to offer an image-based product to its corporate customers.

Every morning at 8 a.m., Check Detect users receive an electronically transmitted file containing both data and images of suspect items to be reviewed directly on their PC or workstation. To view the image of the suspect check, the customer simply selects the item on the suspect listing and the check image is displayed. Customers can enlarge, view the back of the item, or rotate the image to get a clearer view of a specific area of the check, e.g., maker signature, endorsement, print/fax the item or make the pay/return decision. Once they have completed the payment decision process, customers electronically transmit a file of payment decisions to Bank of Boston.

"When designing Check Detect, we asked our customers to tell us what features they needed in order to guard against check fraud," said Charles Pierce, product line manager for Collections and Disbursements. "We incorporated suggestions such as optional dual control authorization into the product."

Check Detect is a companion product to Spinning Image(TM), Bank of Boston's CD-ROM-based check retrieval system, that was introduced in January. Spinning Image is a Windows-based product that provides paid check images stored on an optical compact disc, along with the associated index needed to retrieve the images. By using CD-ROM and PC-based software as the storage and retrieval media, Spinning Image provides for flexibility not available with conventional microfilm systems. Spinning Image customers have experienced a 50 percent reduction in the time required to respond to check copy requests.

Tony Rodriguez, systems manager, Bank of Boston, added: "Check Detect was created by Bank of Boston for Bank of Boston customers. Because we designed it ourselves, our intimate knowledge of the product enables us to react quickly to our customer's individual needs. We have found that by designing products in-house, they can easily be integrated into an entire suite of other products developed specifically for Bank of Boston's customers. Enhancements and upgrades are easy to accomplish because all of the software has the same base design in place."

Bank of Boston has developed a series of cash management solutions using the latest technology in response to the security issues that have become more prevalent during the past 10 years. Since 1983, instances of check fraud have increased tenfold(c). A recent change in the Uniform Commercial Code introduced provisions for comparative negligence (determining the degree to which both parties are responsible). As a result of this change, liability for fraudulent transactions is now shared by corporations and banks, prompting companies to more carefully monitor their disbursements.

"Check Detect is another example of Bank of Boston's ongoing investment in leading-edge technology," said Susan Rugnetta, Bank of Boston department executive for Global Payments. "One of the bank's strengths is its ability to harness that technology to meet the needs of our customers."

Bank of Boston Corp. (NYSE:BKB), with assets of $46.1 billion as of Sept. 30, 1995, is one of the top 20 banks in the nation. New England's only global bank, Bank of Boston offers comprehensive personal, corporate and global banking through a network of over 500 U.S. offices and over 100 offices in 23 countries in Latin America, Europe and Asia, the third-largest overseas network of any U.S. bank. The corporation's common and preferred stocks are listed on the New York and Boston stock exchanges.

-0- (a) U.S. Justice Department. (b) Positive pay is a banking service that provides enhanced fraud protection for check disbursements. (c) Ibid.

CONTACT: Ed Russell

Bank of Boston

617/434-6883

or

Amy Groden

The Weber Group

617/520-7031