CheckFree Introduces Automated Fraud Detection System for Electronic Billing and Payment

-- CheckFree FraudNet(SM) Helps Prevent Fraud Before It Happens;

Participating Banks Mutually Benefit From CheckFree FraudNet Alliance --



Nov 08, 2005, 00:00 ET from CheckFree Corporation

    ATLANTA, Nov. 8 /PRNewswire-FirstCall/ -- CheckFree Corporation
 (Nasdaq:   CKFR) today announced the launch of CheckFree FraudNet(SM), the
 Company's newest solution to continue making electronic billing and payment
 safer than offline, paper-based bills and payments.  The new, automated
 system, supported by Actimize Inc.'s analytics technology, helps mitigate risk
 and reduce fraud for banks and consumers before it happens, which makes paying
 bills online even safer for consumers and fighting crime more efficient for
 financial institutions.
     Over the years, CheckFree has established a cooperative network of
 security, privacy and law enforcement contacts across more than 1,700 consumer
 provider clients, billing organizations and merchants across various
 jurisdictions.  CheckFree FraudNet is an automated fraud detection and case
 management system that is designed to be a collaborative solution.  The
 service combines CheckFree's cumulative knowledge of payment patterns and a
 sophisticated analytics engine to help financial services clients detect and
 stop unauthorized payments before they are completed.  CheckFree FraudNet is
 powered in part by a sophisticated analytics engine from Actimize, the leading
 provider of enterprise technology solutions for mitigating operational risk,
 using real-time analytics.
     CheckFree FraudNet is proving very effective at the detection of possible
 fraudulent transactions through the automation of fraud prevention, detection
 and case resolution processes that have been conducted successfully for many
 years by CheckFree Fraud Control Services.  Not only does CheckFree FraudNet
 have the potential to significantly reduce losses for participating banks, but
 the data on attempted fraudulent transactions can provide forensics to law
 enforcement to help catch and prosecute fraudsters.  Fraud rates for
 CheckFree's electronic billing and payment have historically been extremely
 low due to stringent policies and practices already in place.  Now, as the
 continued adoption of electronic billing and payment increases volumes, these
 processes will be more fully automated, monitored and able to stop fraudulent
 transactions before they occur.
     "CheckFree is committed to continuing to make online billing and payment
 safer than offline.  Our commitment to quality includes bringing our consumer
 service providers, billers and their customers the highest possible levels of
 security and privacy protection," said Matt Lewis, executive vice president
 and general manager of CheckFree's Electronic Commerce Division.  "CheckFree
 FraudNet is one more reason why receiving and paying bills online is safer and
 more secure than receiving paper bills and mailing signed paper checks --
 because CheckFree and its financial services clients will be proactively
 detecting and preventing fraud."
 
     How it Works
     As the leading provider of electronic billing and payment services to more
 than 1,700 consumer service providers, CheckFree is in a unique position to
 help its customers fight fraud.  The CheckFree FraudNet system adds the
 ability to detect rules-based anomalies and place payment transactions into
 queues for further examination by fraud prevention teams at either CheckFree
 or its financial institution clients.
     The Actimize analytics engine issues alerts when suspicious transactions
 or fraud patterns are detected.  A "Yellow Alert" transaction enters a queue
 as it alerts fraud prevention teams to examine the payment that is ready to be
 processed.  The "Red Alert" signals a high likelihood of fraud and holds the
 payment for review by a Fraud Specialist.  If the payment is cleared as valid,
 the transaction is processed with a negligible delay.  This new automation is
 designed to take the level of quality of previous processes to the next level
 of detection and prevention as consumer adoption continues and monthly payment
 volumes are anticipated to increase.  As the CheckFree FraudNet engine gathers
 increasing amounts of data from the millions of transactions CheckFree
 processes daily, the intelligent system continues to learn and continually
 gets "smarter."  These ongoing improvements will deliver shared benefits to
 all CheckFree customers who utilize the service.
     CheckFree FraudNet monitors every bill payment transaction that appears on
 consumers' accounts at member banks and matches them against pre-established
 rules developed through experience.  Consumers who pay bills online will not
 notice the review process or longer payment times unless a transaction is
 determined to be potentially fraudulent.  The alert system allows the fraud
 teams at a bank or at CheckFree to investigate and resolve Red and Yellow
 Alerts quickly and more effectively manage their time and case loads.
     "By moving the fraud prevention and detection system to an automated
 process, we're finding constant improvement in the rates of detection," Lewis
 continued. "As we move forward, the CheckFree FraudNet system will continue to
 learn from a high volume of growing transaction data to deliver shared
 benefits to all participants.  The rule sets will become increasingly advanced
 and when leveraged in conjunction with our wealth of transaction data, will
 allow us to prevent more fraudulent transactions while reducing the number of
 false fraud alert cases that are worked by security teams."
 
     CheckFree FraudNet Alliance
     Every financial institution that leverages CheckFree FraudNet technology
 becomes part of an alliance that leverages a wealth of experiential history.
 Each member also has the ability to manually enter information to continually
 enhance the effectiveness of the tool, reduce cross-industry response times
 and potentially fight crime as an industry.  CheckFree FraudNet accumulates a
 growing knowledge base of patterns and individual fraudsters for continual
 refinement to rules sets and analytics.  This collaborative environment is
 designed to allow financial institutions to build on the effectiveness of best
 practices in fraud prevention and detection.  These benefits are quickly
 realized by financial institutions through a turn-key implementation that
 eliminates development costs and provides a live system within days.
 
     Online Billing and Payment Safer than Paper
     Armed with CheckFree FraudNet, CheckFree and its member banks, brokerage
 firms, credit unions and portals anticipate additional reductions in fraud
 rates, and can assure their consumers that they are paying bills online from
 among the safest sites on the Internet.  In addition to stringent security
 technologies and privacy policies in place, consumers may not be aware that
 financial services sites and electronic transactions in particular are subject
 to regulations that protect consumers that other types of sites are not.
 These include Federal Reserve Regulation E, the Uniform Commercial Code and
 The Internet False Identification Act of 2000.
     According to a study released in January 2005 by Javelin Strategy &
 Research, identity theft and identity fraud are more frequently committed
 using traditional methods -- a lost or stolen wallet, access of account
 information from paper mail and trash -- and are more frequently perpetrated
 by people the victims know than by strangers who hack Internet sites.  The
 best ways consumers can protect themselves are illustrated by a quiz and tips
 at a site hosted by the Better Business Bureau -- www.idsafety.net.
     Javelin Strategy & Research estimates that identify fraud crimes total
 $52.6 billion annually.
     "Using technology to prevent and detect identity fraud represents an
 opportunity for financial institutions to differentiate themselves on improved
 customer safety and overall profitability," said James Van Dyke, founder of
 Javelin Strategy & Research.  "Fraudsters access information through all
 channels, and may try to leverage electronic transactions to commit crimes.
 As an automated system that combines early detection with prevention of
 fraudulent transactions, CheckFree's solution has the potential to further
 deliver on the inherent potential safety advantages of electronic payments."
     According to an October 2005 Gartner report, about 65 percent of all U.S.
 banks will use transaction anomaly detection and user profiling systems by the
 end of 2010.(i)
     "Gartner has been recommending that financial services leverage technology
 to protect consumers.  Customer and transaction authentication and monitoring
 requires that a financial institution has a front- and back-end strategy.
 Instead of just authenticating a customer, we have been saying that banks must
 monitor back-end activity at the account and transaction level to help prevent
 fraud and inspire greater consumer confidence," said Avivah Litan, research
 vice president at Gartner, Inc.
     Consumers who pay bills from CheckFree-powered sites are further protected
 by the CheckFree Guarantee, which minimizes consumer liability for fraud
 associated with online bill payment transactions.
 
     About Actimize (www.actimize.com)
     The Actimize Identity Theft Solution is capable of identifying suspicious
 activity in real time, monitoring all on-line activities, including user
 sessions, IP addresses, bill payment, internal transfer, ACH and account
 services.
     Actimize's enterprise solutions provide top financial institutions with
 the knowledge they need in real time.  Recognized by leading industry
 analysts, Actimize offers solutions for Operational Risk Management including
 Anti-Money-Laundering, Fraud Prevention, Brokerage and Banking Compliance, and
 Brokerage Surveillance.  Actimize's innovative platform speeds implementation
 and is sensible for the bottom line.  With over 40 enterprise clients,
 including seven of the ten largest financial organizations, Actimize provides
 surveillance and compliance monitoring for over USD $4 trillion in assets. The
 Actimize customer base includes banks, brokerages, insurance firms, regulatory
 bodies, and government agencies.
 
     About CheckFree (www.checkfreecorp.com)
     Founded in 1981, CheckFree Corporation (Nasdaq:   CKFR) provides financial
 electronic commerce services and products to organizations around the world.
 CheckFree Electronic Commerce solutions enable thousands of financial services
 providers and billers to offer their customers the convenience of receiving
 and paying their household bills online or in person through retail outlets.
 CheckFree Investment Services provides a broad range of investment management
 solutions and outsourced services to thousands of financial services
 organizations, which manage more than $1.2 trillion in assets.  CheckFree
 Software develops, markets and supports software applications that are used by
 financial institutions to process more than two thirds of the 12 billion
 Automated Clearing House transactions in the United States.  The division also
 provides operational risk management, financial messaging, corporate actions,
 and regulatory compliance software to more than 1,500 organizations across the
 globe.
 
     Certain of CheckFree's statements in this press release are not purely
 historical, and as such are "forward-looking statements" within the meaning of
 the Private Securities Litigation Reform Act of 1995.  These include
 statements regarding management's intentions, plans, beliefs, expectations or
 projections of the future.  Forward-looking statements involve risks and
 uncertainties, including without limitation, the various risks inherent in
 CheckFree's business, and other risks and uncertainties detailed from time to
 time in CheckFree's periodic reports filed with the Securities and Exchange
 Commission, including CheckFree's Annual Report on Form 10-K for the year
 ended June 30, 2005 (filed September 2, 2005).  One or more of these factors
 have affected, and could in the future affect CheckFree's business and
 financial results in future periods, and could cause actual results to differ
 materially from plans and projections.  There can be no assurance that the
 forward-looking statements made in this press release will prove to be
 accurate, and issuance of such forward-looking statements should not be
 regarded as a representation by CheckFree, or any other person, that the
 objectives and plans of CheckFree will be achieved.  All forward-looking
 statements made in this press release are based on information presently
 available to management, and CheckFree assumes no obligation to update any
 forward-looking statements.
 
     (i) Gartner Research "Regulators Tell U.S. Banks to Adopt Stronger Risk-
 Based Authentication" by Avivah Litan. October 27, 2005.
 
 

SOURCE CheckFree Corporation
    ATLANTA, Nov. 8 /PRNewswire-FirstCall/ -- CheckFree Corporation
 (Nasdaq:   CKFR) today announced the launch of CheckFree FraudNet(SM), the
 Company's newest solution to continue making electronic billing and payment
 safer than offline, paper-based bills and payments.  The new, automated
 system, supported by Actimize Inc.'s analytics technology, helps mitigate risk
 and reduce fraud for banks and consumers before it happens, which makes paying
 bills online even safer for consumers and fighting crime more efficient for
 financial institutions.
     Over the years, CheckFree has established a cooperative network of
 security, privacy and law enforcement contacts across more than 1,700 consumer
 provider clients, billing organizations and merchants across various
 jurisdictions.  CheckFree FraudNet is an automated fraud detection and case
 management system that is designed to be a collaborative solution.  The
 service combines CheckFree's cumulative knowledge of payment patterns and a
 sophisticated analytics engine to help financial services clients detect and
 stop unauthorized payments before they are completed.  CheckFree FraudNet is
 powered in part by a sophisticated analytics engine from Actimize, the leading
 provider of enterprise technology solutions for mitigating operational risk,
 using real-time analytics.
     CheckFree FraudNet is proving very effective at the detection of possible
 fraudulent transactions through the automation of fraud prevention, detection
 and case resolution processes that have been conducted successfully for many
 years by CheckFree Fraud Control Services.  Not only does CheckFree FraudNet
 have the potential to significantly reduce losses for participating banks, but
 the data on attempted fraudulent transactions can provide forensics to law
 enforcement to help catch and prosecute fraudsters.  Fraud rates for
 CheckFree's electronic billing and payment have historically been extremely
 low due to stringent policies and practices already in place.  Now, as the
 continued adoption of electronic billing and payment increases volumes, these
 processes will be more fully automated, monitored and able to stop fraudulent
 transactions before they occur.
     "CheckFree is committed to continuing to make online billing and payment
 safer than offline.  Our commitment to quality includes bringing our consumer
 service providers, billers and their customers the highest possible levels of
 security and privacy protection," said Matt Lewis, executive vice president
 and general manager of CheckFree's Electronic Commerce Division.  "CheckFree
 FraudNet is one more reason why receiving and paying bills online is safer and
 more secure than receiving paper bills and mailing signed paper checks --
 because CheckFree and its financial services clients will be proactively
 detecting and preventing fraud."
 
     How it Works
     As the leading provider of electronic billing and payment services to more
 than 1,700 consumer service providers, CheckFree is in a unique position to
 help its customers fight fraud.  The CheckFree FraudNet system adds the
 ability to detect rules-based anomalies and place payment transactions into
 queues for further examination by fraud prevention teams at either CheckFree
 or its financial institution clients.
     The Actimize analytics engine issues alerts when suspicious transactions
 or fraud patterns are detected.  A "Yellow Alert" transaction enters a queue
 as it alerts fraud prevention teams to examine the payment that is ready to be
 processed.  The "Red Alert" signals a high likelihood of fraud and holds the
 payment for review by a Fraud Specialist.  If the payment is cleared as valid,
 the transaction is processed with a negligible delay.  This new automation is
 designed to take the level of quality of previous processes to the next level
 of detection and prevention as consumer adoption continues and monthly payment
 volumes are anticipated to increase.  As the CheckFree FraudNet engine gathers
 increasing amounts of data from the millions of transactions CheckFree
 processes daily, the intelligent system continues to learn and continually
 gets "smarter."  These ongoing improvements will deliver shared benefits to
 all CheckFree customers who utilize the service.
     CheckFree FraudNet monitors every bill payment transaction that appears on
 consumers' accounts at member banks and matches them against pre-established
 rules developed through experience.  Consumers who pay bills online will not
 notice the review process or longer payment times unless a transaction is
 determined to be potentially fraudulent.  The alert system allows the fraud
 teams at a bank or at CheckFree to investigate and resolve Red and Yellow
 Alerts quickly and more effectively manage their time and case loads.
     "By moving the fraud prevention and detection system to an automated
 process, we're finding constant improvement in the rates of detection," Lewis
 continued. "As we move forward, the CheckFree FraudNet system will continue to
 learn from a high volume of growing transaction data to deliver shared
 benefits to all participants.  The rule sets will become increasingly advanced
 and when leveraged in conjunction with our wealth of transaction data, will
 allow us to prevent more fraudulent transactions while reducing the number of
 false fraud alert cases that are worked by security teams."
 
     CheckFree FraudNet Alliance
     Every financial institution that leverages CheckFree FraudNet technology
 becomes part of an alliance that leverages a wealth of experiential history.
 Each member also has the ability to manually enter information to continually
 enhance the effectiveness of the tool, reduce cross-industry response times
 and potentially fight crime as an industry.  CheckFree FraudNet accumulates a
 growing knowledge base of patterns and individual fraudsters for continual
 refinement to rules sets and analytics.  This collaborative environment is
 designed to allow financial institutions to build on the effectiveness of best
 practices in fraud prevention and detection.  These benefits are quickly
 realized by financial institutions through a turn-key implementation that
 eliminates development costs and provides a live system within days.
 
     Online Billing and Payment Safer than Paper
     Armed with CheckFree FraudNet, CheckFree and its member banks, brokerage
 firms, credit unions and portals anticipate additional reductions in fraud
 rates, and can assure their consumers that they are paying bills online from
 among the safest sites on the Internet.  In addition to stringent security
 technologies and privacy policies in place, consumers may not be aware that
 financial services sites and electronic transactions in particular are subject
 to regulations that protect consumers that other types of sites are not.
 These include Federal Reserve Regulation E, the Uniform Commercial Code and
 The Internet False Identification Act of 2000.
     According to a study released in January 2005 by Javelin Strategy &
 Research, identity theft and identity fraud are more frequently committed
 using traditional methods -- a lost or stolen wallet, access of account
 information from paper mail and trash -- and are more frequently perpetrated
 by people the victims know than by strangers who hack Internet sites.  The
 best ways consumers can protect themselves are illustrated by a quiz and tips
 at a site hosted by the Better Business Bureau -- www.idsafety.net.
     Javelin Strategy & Research estimates that identify fraud crimes total
 $52.6 billion annually.
     "Using technology to prevent and detect identity fraud represents an
 opportunity for financial institutions to differentiate themselves on improved
 customer safety and overall profitability," said James Van Dyke, founder of
 Javelin Strategy & Research.  "Fraudsters access information through all
 channels, and may try to leverage electronic transactions to commit crimes.
 As an automated system that combines early detection with prevention of
 fraudulent transactions, CheckFree's solution has the potential to further
 deliver on the inherent potential safety advantages of electronic payments."
     According to an October 2005 Gartner report, about 65 percent of all U.S.
 banks will use transaction anomaly detection and user profiling systems by the
 end of 2010.(i)
     "Gartner has been recommending that financial services leverage technology
 to protect consumers.  Customer and transaction authentication and monitoring
 requires that a financial institution has a front- and back-end strategy.
 Instead of just authenticating a customer, we have been saying that banks must
 monitor back-end activity at the account and transaction level to help prevent
 fraud and inspire greater consumer confidence," said Avivah Litan, research
 vice president at Gartner, Inc.
     Consumers who pay bills from CheckFree-powered sites are further protected
 by the CheckFree Guarantee, which minimizes consumer liability for fraud
 associated with online bill payment transactions.
 
     About Actimize (www.actimize.com)
     The Actimize Identity Theft Solution is capable of identifying suspicious
 activity in real time, monitoring all on-line activities, including user
 sessions, IP addresses, bill payment, internal transfer, ACH and account
 services.
     Actimize's enterprise solutions provide top financial institutions with
 the knowledge they need in real time.  Recognized by leading industry
 analysts, Actimize offers solutions for Operational Risk Management including
 Anti-Money-Laundering, Fraud Prevention, Brokerage and Banking Compliance, and
 Brokerage Surveillance.  Actimize's innovative platform speeds implementation
 and is sensible for the bottom line.  With over 40 enterprise clients,
 including seven of the ten largest financial organizations, Actimize provides
 surveillance and compliance monitoring for over USD $4 trillion in assets. The
 Actimize customer base includes banks, brokerages, insurance firms, regulatory
 bodies, and government agencies.
 
     About CheckFree (www.checkfreecorp.com)
     Founded in 1981, CheckFree Corporation (Nasdaq:   CKFR) provides financial
 electronic commerce services and products to organizations around the world.
 CheckFree Electronic Commerce solutions enable thousands of financial services
 providers and billers to offer their customers the convenience of receiving
 and paying their household bills online or in person through retail outlets.
 CheckFree Investment Services provides a broad range of investment management
 solutions and outsourced services to thousands of financial services
 organizations, which manage more than $1.2 trillion in assets.  CheckFree
 Software develops, markets and supports software applications that are used by
 financial institutions to process more than two thirds of the 12 billion
 Automated Clearing House transactions in the United States.  The division also
 provides operational risk management, financial messaging, corporate actions,
 and regulatory compliance software to more than 1,500 organizations across the
 globe.
 
     Certain of CheckFree's statements in this press release are not purely
 historical, and as such are "forward-looking statements" within the meaning of
 the Private Securities Litigation Reform Act of 1995.  These include
 statements regarding management's intentions, plans, beliefs, expectations or
 projections of the future.  Forward-looking statements involve risks and
 uncertainties, including without limitation, the various risks inherent in
 CheckFree's business, and other risks and uncertainties detailed from time to
 time in CheckFree's periodic reports filed with the Securities and Exchange
 Commission, including CheckFree's Annual Report on Form 10-K for the year
 ended June 30, 2005 (filed September 2, 2005).  One or more of these factors
 have affected, and could in the future affect CheckFree's business and
 financial results in future periods, and could cause actual results to differ
 materially from plans and projections.  There can be no assurance that the
 forward-looking statements made in this press release will prove to be
 accurate, and issuance of such forward-looking statements should not be
 regarded as a representation by CheckFree, or any other person, that the
 objectives and plans of CheckFree will be achieved.  All forward-looking
 statements made in this press release are based on information presently
 available to management, and CheckFree assumes no obligation to update any
 forward-looking statements.
 
     (i) Gartner Research "Regulators Tell U.S. Banks to Adopt Stronger Risk-
 Based Authentication" by Avivah Litan. October 27, 2005.
 
 SOURCE  CheckFree Corporation