ACH Fraud - Detection and Prevention

This training program will discuss common forms of ACH fraud, including: social engineering, account takeover (consumer, corporate, and institution internal accounts), money mules and advance fee frauds, and embezzlement. Under each of these sections, the course will also discuss: ACH fraud detection, fraud mitigation, ACH Returns, sound business practices to thwart attempts, and education.

Why Should You Attend:

Fraudsters continue to infiltrate the ACH Network at the cost of U.S. businesses and financial institutions across the country. Trends show that criminals have once again set their sights on small to mid-sized businesses, payroll processors (including CPA firms), and small financial institutions. Add in everyday occurrences like embezzlement, and it’s no wonder ACH fraud is so persistent.

Regardless of how relentless these forms of fraud are, so much of today’s fraud can be detected and managed before they cause losses, if you know what to look for.

This 90-minute, information packed session will identify four common types of fraud perpetrated through the ACH Network: social engineering, account takeover, advance fee frauds, and embezzlement. More importantly, it will explore how to detect these frauds and methods to manage the risk at your organization.

Whether you are a financial institution seeking to understand these frauds and options under the ACH Rules, or a business who desires a better understanding of how to protect your assets, this session will cover each fraud from various perspectives, flexing your ability to deflect these frauds and better understand the process if fraud does occur.

Join us to:

• Learn how losses from social engineering, account takeover, advance fee frauds, and embezzlement occur using ACH
• Isolate ways to detect these forms of fraud
• Study sound business practices to manage the risks of these frauds
• Review if/when holds or returns may apply to these fraudulent transactions
• Isolate appropriate return reason codes when applicable

Learning Objectives:

• Identify common types of ACH fraud
• Learn common ways the frauds are perpetrated through the ACH Network
• Discuss best practices to detect and combat each form of fraud presented
• Isolate sound business practices to avoid common forms of ACH fraud in the future
• Locate appropriate return reason codes and funds availability exemptions in the ACH Rules Book

Areas Covered in the Webinar:

Social Engineering

• Define and demonstrate through examples of real cases from a business, an ODFI and an RDFI perspective
• Detection and mitigation methods

Account Takeover (Consumer, Corporate, and Institution Internal Accounts)

• Define and demonstrate through examples of real cases from a business and an ODFI perspective
• Detection and mitigation methods
• Consumer accounts
• Business accounts
• DFI internal accounts

Money Mules and Advance Fee Frauds

• Define and demonstrate through examples of real cases from a business, an ODFI and an RDFI perspective
• Money mule = Money laundering - the RDFI obligation under BSA/AML
• Detection and mitigation methods

Embezzlement

• Define and demonstrate through examples of real cases from a business and a DFI perspective
• Profile of a typical embezzler
• Detection and mitigation methods

Returns and Handling of Fraudulent Transactions

• The benefits of notification vs. reversal
• RDFI handling from ODFI notification of fraudulent transaction

Who Will Benefit:

All payments professionals who want to expand their knowledge of ACH fraud mitigation strategies, including:

• Business or bank investigators
• Auditors
• Compliance professionals
• Third-parties who process payments for other entities
• CPAs
• Payments processors