What is ACH Fraud?
Why is ACH Fraud on the Rise?
ACH stands for Automated Clearing House, a network used by financial institutions to handle direct deposits, bill payments, and other electronic funds transfers between businesses and individuals. ACH fraud occurs when unauthorized transactions are made from a bank account using this network.
ACH fraud is on the rise because it’s easy to carry out and can be highly lucrative for criminals. According to an FBI report, there were approximately $100 million in attempted losses due to ACH fraud, with new cases being reported weekly. What used to require physically forging checks can now be done electronically with far less risk for the fraudster.
Protecting Yourself and Your Clients
- Stay vigilant against phishing emails: Be cautious about emails from unknown senders and avoid clicking on suspicious links or downloading attachments.
- Monitor bank accounts regularly: Regularly review account statements for unauthorized transactions.
- Implement strong security measures: Use multi-factor authentication and keep your software up to date.
- Verify ACH changes with vendors: If you receive an email from a vendor requesting updates to ACH routing numbers, always call to verify the request using a known and trusted phone number.
- Educate clients and employees: Share best practices and ensure everyone is aware of the risks and warning signs of ACH fraud.
Final Thoughts
ACH fraud is a serious and growing threat, but with awareness and the right precautions, we can protect ourselves and our clients from falling victim. If you have any questions or need further information, feel free to reach out.
Thanks for joining this Tech Thursday, and stay safe out there!
-Your ABI Tech Team
