CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » SPONSORED BY
Sponsored Content

How safe are my ACH payments?

How do credit unions ensure payments are protected?

March 21, 2022
Josh Sheehan
No Comments
Josh_Sheehan_1200
Advanced Fraud Solutions Vice President of Sales Josh Sheehan.

The ACH Network’s ever greater volumes raise an important question: how do credit unions, who increasingly rely on ACH, ensure that their ACH payments are protected?

The use of the ACH Network skyrocketed during the pandemic, prompted by the need to provide faster digital payments and quicker reconciliation of payroll, stimulus, business-to-business, person-to-person, and other payments. ACH was already heavily used to facilitate direct deposit of payroll, Social Security, and other major payments.

Content Sponsored By:

Advanced Fraud Solutions

In fact, Nacha announced a record year in 2021, with more than 29 billion payments (16.4 billion debits, 12.7 billion credits) totaling $72.6 trillion. The growth in transaction volume in 2021 was up 8.7% year-over-year. Same Day ACH reached $943.7 billion on 603.8 million transactions, a value increase of 105% compared to 2020.

But with record growth, coupled with higher dollar limits, credit unions also need to be aware of potential fraud risk.

According to the Faster Payments Council (FPC), several fraud schemes are of concern. Detailed in an FPC letter to the Federal Reserve, concerning schemes include:

  • Account takeover. Account takeover is when a fraudster gains unauthorized access to a user’s account. Successfully taken over, the fraudster usually changes the credentials to lock the victim out, while transferring as much money as they can into a fraud-controlled account. 
  • Application fraud. Application fraud is when a fraudster uses a stolen or synthetic identity to apply for a loan or line of credit. The fraudster will then transfer monies into their account and leave the victim in the lurch. 
  • Transaction fraud. Transaction fraud is when a fraudster cons consumers, or individuals at a business, to send them payments under false pretenses. This is usually accompanied by social engineering tactics, carried out via email or phone, and involves advertising fake services, threats, or having the victim change billing information.

In short, fraudsters are deploying a variety of tactics to take advantage of faster payments. They are armed with vast troves of personal identifiable information (PII), technology, and manipulative tactics that they aim at credit unions and their members. Without proper measures in place, these types of payments fraud schemes will persist, translating into dollar losses and loss of trust.

In response, to protect faster payments as well as help meet Nacha’s compliance efforts, Advanced Fraud Solutions released TrueACH with Account Validation—a new ACH tool that enables credit unions to confirm the account status, account owner, or authorized user(s). 

TrueACH with Account Validation does this by triangulating the identity of a query against an industry-leading, financial institution-contributed database that includes account status, account owner, and authorized user identity. 

With TrueACH with Account Validation, credit unions can confirm if the person is authorized to transact on an account and further their efforts to meet Nacha’s compliance standards.

To learn more about TrueACH with Account Validation, and how you can better protect your ACH payments, schedule a demo today. 

JOSH SHEEHAN is vice president of sales at Advanced Fraud Solutions.

KEYWORDS compliance fraud technology

Post a comment to this article

Report Abusive Comment

Credit Union Magazine: Winter 2022

Winter 2022

Credit Union Magazine’s Winter 2022 issue highlights data-driven marketing, the board’s role in cybersecurity, elder abuse scams, credit unions’ auto lending advantage, and more.
Digital Edition •  Subscribe

Trending

  • House passes CUNA, League-led board modernization bill

  • CFPB issues CUNA-opposed proposal on credit card late fees

  • Key committee leaders supportive of credit union priorities

Tweets by CUNA_News

Polls

Vote for the 2023 CU Hero of the Year

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us