During our first session of Fraud Office Hours, an attendee asked, "What are the current trends in ACH Fraud?" Watch this video clip to see how Unit21's Head of Fraud Risk, Alex Faivusovich, responded.
Protecting Against ACH Fraud
"ACH fraud has always been there. And I think the biggest trend is that all of those new fraudsters are taking their first steps in the fraud world with ACH fraud.
The basic process is for them to try and understand which financial institutions can be leveraged to bring funds in and take funds out before the sending institution will suspect anything and respond with any type of return code. It's critical to have a strong policy around how much you allow new users to use ACH on your platform. And also to have a strong policy around what happens if a certain user gets some type of return.
It's worth considering how you might treat different return codes and how you treat the user if you had different return codes. I think lack of policy of one of the biggest issues here, and nobody wants to find out that this is the case. Implement powerful customer segmentation and policy around how you allow users to do ACHs on your platform."
Looking for more insights? Check out our first session of Fraud Office Hours on-demand for a deeper dive into current fraud trends and which preventative measures to consider.