Fraud Tactics: How to Avoid the Latest ACH Scam
Written By
Banc of California
Scammers are growing more sophisticated and learning how to bypass even the most trusted fraud prevention tools. A new wave of fraud uses the company IDs of legitimate brands to fool block and filter technology.
These scams are particularly alarming because they target the trust built into ACH positive pay. Here’s what you need to know and what you can do today to help protect yourself.
How This ACH Scam Works
Take Steps to Protect Your Business
Protecting yourself from ACH fraud doesn’t require abandoning the system entirely. ACH block and filter remains a valuable form of business fraud prevention, but it works best when combined with smart account management, active human oversight and collaboration with your bank. Here are some extra steps you can take to detect and help prevent payment fraud.
- Deploy a Secondary Validation Control. This added layer helps confirm that each transaction is legitimate before it reaches your account.
- Review Approved Company IDs Regularly. Frequent reviews ensure that only trusted vendors and partners have the ability to debit your account.
- Set Realistic Transaction Limits. Limits can prevent large unauthorized withdrawals by stopping questionable payments before they process.
- Carefully Examine Exception Requests. Taking time to inspect unexpected or out-of-pattern transactions helps you catch fraud attempts early.
- Train Your Team on ACH Controls. Educating employees builds awareness and reduces the chances of internal errors that can lead to losses.
- Report Suspicious Activity Immediately. Quick action improves the likelihood that your bank can block or reverse fraudulent transfers.
- Stay Connected and Informed. Regular communication with your bank and attention to fraud trends help you strengthen your overall defense.
Shared Vigilance Is the Best Defense
ACH fraud protection is an ongoing, shared responsibility. The best defense is a combination of advanced technology and careful human monitoring by both our clients and our bankers at Banc of California. As a reminder, Banc of California will never contact you via text, email or phone to request your password or other sensitive information.
If you haven’t reviewed your ACH protocols recently, now is the time to take this critical step. Reach out to your Treasury Management team to review your current account safeguards and discuss additional fraud prevention services.
CONNECT WITH A RELATIONSHIP MANAGER
COMPLETE THIS FORM OR CALL
877-770-BANC (2262)