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Complete Story
04/11/2019
Scammers Target ACH Transactions
CFO
Automated clearinghouse (ACH) transactions are often considered safer and more difficult to compromise than paper checks and wire transfers, but that reputation might not last.
In 2018, 33% of organizations were subject to ACH debit fraud and 20% were subject to ACH credit fraud, each up several percentage points from 2017, according to the Association for Financial Professionals’ Payments Fraud and Control Survey, released on Tuesday. What’s more, ACH was the only payment method that experienced a year-over-year increase in the percentage of companies that experienced instances of fraud.
“This new development indicates that fraudsters are now trying to use ACH transactions as vehicles for their scams as they move away from checks and wires,” according to the AFP report. ACH transactions, of course, are increasingly popular and are cheaper than wire transfers.
How are fraudsters committing ACH fraud? In many instances, “it is usually not the payment method itself that is compromised but the processes leading up to payment initiation,” the AFP explained.
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