Fraud: A 360° View” White Paper Reveals Widespread Bank Cyber Crime Challenges

Insights and commentary from the FDIC, FBI, M&T Bank and Nice-Actimize

Jersey City, NJ, August 25, 2011– Fundtech Ltd. (NASDAQ: FNDT), a market leader in global transaction banking solutions, today released a new white paper investigating the widespread cyber crime challenges faced by banks and how to fight them. The white paper includes insights from fraud and cyber crime experts from the FDIC, FBI, M&T Bank and NICE-Actimize.

Entitled “Fraud: A 360° View,” the white paper looks into the increasing occurrence of wire transfer fraud across banking channels. While cyber fraud losses from all sources have been on the decline since first peaking in 2006, online wire transfer and ACH fraud is still climbing – with 2010 seeing $87.5 million in losses, according to David M. Nelson, Specialist in the FDIC’s Cyber Fraud and Financial Crime Section. Notably, this type of fraud is increasingly occurring across a variety of channels: from bank account infiltration (24%), via call center and fax communication (26%), as well as in-branch (15%). A recent Fundtech survey revealed that the majority (66%) of bankers believe that cyber crime will never get under control.

John Walp, Information Security Officer at M&T Bank, noted that a combination of people, process and technology is needed to fight fraud, particularly as cyber crime becomes increasingly profitable. Walp pointed to fraud prevention services such as ACH block and positive pay as well as isolated computer usage as examples of ways in which to reduce the threat of fraud. The Fundtech survey also showed that the vast majority (84%) of bankers believe that better detection tools and techniques would help the industry address fraud.

Part of the cyber crime problem is also lack of end user knowledge – a NICE-Actimize study of 1,000 small businesses showed that only 18% said that they understood they had liability for cyber losses, revealing a severe lack of basic fraud knowledge. Ben Knieff, Director of Fraud Product Marketing at Actimize, points to how customer-centric fraud management should focus first on detection and examining transactions within the broader context of customer behavior.

The Fundtech white paper also describes key steps that need to be taken to best smooth the recovery process following an incident of cyber crime. Zachary Miller, Acting Deputy Assistant Director in the FBI Cyber Division, underscores the need for an incident response plan outlining policies and procedures for dealing with an incident.

"It is clear that security and fraud monitoring is a top concern for bankers," comments Ed Gainer, Senior Vice President of North American Cash Management at Fundtech. "Seventy-four percent of our clients think that their business clients would be willing to change financial institutions for better security. Account security is now a key competitive issue as well as a legal concern.”

To download a complete copy of the Fundtech white paper on fraud, please visit http://www.fundtech.com/Library.

About Fundtech

Fundtech (NASDAQ: FNDT), was founded in 1993, and is a leading provider of software and services to banks of all sizes around the world. Payments systems include wire transfers, ACH origination, cross-border payments and remittance. Cash management systems are designed for large corporate through small business clients. Fundtech operates the world’s largest SWIFT service bureau. We offer an extensive line of financial supply chain applications including electronic invoice presentment and supply chain financing. And we are the leading provider of CLS systems to the world’s largest banks. More than 1,000 clients throughout the world rely on Fundtech solutions to improve operational efficiency and provide greater competitiveness through innovative business-to-business services. For more information, visit www.fundtech.com.

Forward Looking Statements:

This news release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, projections of revenues, income or loss, capital expenditures, plans for growth and future operations, competition and regulation. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted or quantified. When used in this Release, the words, "estimates," "expects," "anticipates," "believes," "plans," "intends," and variations of such words and similar expressions are intended to identify forward-looking statements that involve risks and uncertainties. Future events and actual results could differ materially from those set forth in, contemplated by or underlying the forward-looking statements. The factors that could cause actual results to differ materially from those discussed or identified from time to time in Fundtech's public filings, including its Annual Report on Form 20-F for the year ended December 31, 2010, including general economic and market conditions, changes in regulations and taxes and changes in competition in pricing environment. Undue reliance should not be placed on these forward-looking statements, which are applicable only as of the date hereof. Fundtech undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this Release or to reflect the occurrence of unanticipated events.

Press Contacts:

(USA) Binna Kim, Cognito +1 646 395 6304 Binna.Kim@cognitomedia.com

(UK) Chanda Gathani - Metia Ltd. +44 (0) 20 3100 3605 chanda.gathani@metia.com

Corporate Contacts:

George Ravich – Fundtech Ltd. +1-201-215-6530 george.ravich@fundtech.com