Document Security Systems, Inc. Teams with Relyco to Offer Latest Effective Check Security Technology to Combat Soaring Check Fraud


DSS Incorporates New Patent Protected Scanning and Copy Deterrent Technology into Paper Checks

ROCHESTER, N.Y. - Document Security Systems, Inc. (NYSE Amex: DSS; "DSS"), a world-wide developer and manufacturer of security and authentication solutions which prevent counterfeiting and brand fraud announced today that it has teamed with New Hampshire based, Relyco®, a leading provider of value-added business printing and payment solutions, to produce a Bank Check which contains the most effective counterfeit prevention technologies in the industry. In addition, this check meets or exceeds all Federal mandated requirements including "Check 21".

According to American Banker Magazine, more than 1.2 million fraudulent checks are written each day which equates to more than 13 per second.

A 2009 American Bankers Association study estimates there were 760,955 cases of check fraud in 2008 with actual losses estimated at $1.024 billion, compared to 561,306 cases and $969 million in 2005 (2006 ABA Study) and 616,469 cases and $677 million in 2002 (2003 ABA).

Key findings of the 2011 American Financial Professionals Payments Fraud and Control Survey published by JP Morgan include:

- 80% of business-to-business transactions are made by check; that number is expected to decrease only minimally in the coming years.

- Seventy-one percent of organizations experienced attempted or actual payments fraud in 2010.

- Large organizations were significantly more likely to have experienced payments fraud than were smaller ones. Eighty-two percent of organizations with annual revenues over $1 billion were victims of payments fraud in 2010 compared with 58 percent of organizations with annual revenues under $1 billion.

- Twenty-nine percent of survey respondents report that incidents of fraud increased in 2010 compared to 2009.

- Checks were the dominant payment form targeted by fraudsters, with 93 percent of affected organizations reporting that their checks had been targeted.

According to the U.S. Secret Service's 2010 Annual report, forensic examinations of counterfeit currency has revealed that 63% of all counterfeits are made using scanning and digital imaging equipment. DSS's technologies, which prevent accurate image capturing by these devices, are therefore extremely valuable tools in the fight against counterfeiting.

Patrick White, CEO of DSS, stated: "Based on the published statistics above, it is quite clear that the checks produced by some major check manufacturers are not secure and banks are losing the battle against counterfeiters. It is time for more effective, modern check protection technologies such as those we have imbedded into the checks we are producing for Relyco(®). Together with Relyco(®) and other licensed check manufacturers, we will educate banks on improving their check security with our scan and copy prevention technologies."

David Wicker, VP of Research and Development said, "Contrary to what some security printers are claiming, effective anti-scanning technology does exist, in the form of DSS patented technology. DSS has successfully completed extensive testing projects on desktop scanners, color copiers, digital copiers as well as high speed check archival scanners. Our anti-scanning technology's ability to defeat the widest array of copiers and scanners quantifies the extreme value of this internationally patented technology."

DSS also announced that it will exhibit at a major trade show next week.

- LAS VEGAS - PACK EXPO SHOW on September 26th-28th from 9:00am to 4:00pm at the Las Vegas Convention Center, Las Vegas, NV - Booth #S-5990

DSS will display packaging and label samples containing all of their latest patented optical deterrent and authentication technologies from the AuthentiGuard(®) Suite of technologies, including Bar Code Barricade, Phantom, Prism, and VeriGlow(®) as well as RFID and mass serialization products.

About DSS (Document Security Systems, Inc.)

DSS is comprised of four core operating groups, DSS Plastics Group, DSS Secure Printing Group, DSS Packaging Group and DSS Digital Group. Through these divisions, DSS provides counterfeit prevention and comprehensive brand and digital information protection solutions to corporations, governments, and financial institutions around the world. DSS develops and manufactures products and services containing patented and patent pending optical deterrent technologies that help prevent counterfeiting and brand fraud from the use of the most advanced scanners and copiers in the market.

The Company owns numerous patented and patent-pending technologies and products. DSS uses its covert and overt technologies to protect a wide range of documents including, but not limited to, consumer packaging, vital records, ID Cards/RFID, smart cards, passports, gift certificates, checks and coupons. The Company also protects digital information via secure cloud computing and disaster recovery services. Furthermore, DSS uses its extensive knowledgebase to provide comprehensive brand protection solutions to its customers. From risk analysis and vulnerability assessment, to systems integration and monitoring, DSS offers the advanced tools and knowledgebase needed to protect the world's most valuable and at-risk brands. DSS's customized solutions are designed to protect against product diversion, counterfeit, and other costly and damaging occurrences. In addition, DSS offers commercial printing services.

For more information on DSS and its subsidiaries, please visit www.DSSsecure.com.

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About Relyco(®)

Relyco is a leading provider of value-added business printing and payment solutions with over 10,000 customers worldwide. As one of the largest distributors of laser and digital applications, including laser checks, high-security documents, and e-payment software, Relyco's long-standing membership in the ASC X9AB check processing committee and extensive experience with fraud prevention strategies and new forms technologies positions it as the most innovative leader in the business printing solutions field. Relyco's customers include Google, PepsiCo, Samsung, Adobe and Microsoft. For more information, please visit www.relyco.com, call 800.777.7359 or 603.742.0999, or email info@relyco.com.

For more information:

BPC Financial MarketingJohn Baldissera800-368-1217 Email: ir@documentsecurity.com

SOURCE

Document Security Systems, Inc.

Web Site: www.DSSsecure.com

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