Articles

ISPLA News-Bank Fraud: Emerging Automated Clearing House Issue

Faster ACH payments are taxing banks' ability to check for fraud and criminals are taking notice.

As of September 2016, credit-based ACH payments are now being settled within the same day. These are transactions where one person or entity is pushing money from their bank account to another person or organization, using the automated clearinghouse. Examples include direct deposit, payroll, person-to-person and vendor payments.
Where before banks had two to five days to analyze suspicious transactions, now in some cases they have only two hours. Banks haven't quite caught up with the shorter time frame for checking red flags, some say, and fraudsters have jumped on this opportunity. For further information click on the "Security Related Issues" section at:  ISPLA - Security Related Topics