Countless industries across the globe rely on automated clearing houses (ACH) as a payment option to conduct transactions. As a result, cyber criminals are increasingly targeting these transactions to commit fraud.
Cyberattacks of this type can leave unprepared businesses on the hook for thousands in financial losses and damaged customer relationships. Thankfully, there are several effective ways to prevent ACH fraud.
At EHD, our risk control professionals have witnessed these evolving cyberattacks and compiled a list of best practices companies can implement to prevent ACH fraud from taking place at their organization. Cyber insurers also want to make sure their policyholders are up to date on the latest fraud prevention practices.
Here are five simple steps businesses can take today to stay safe amid rising ACH attacks:
- Set up multi-factor authentication (MFA): MFA is one of the most effective ways to prevent cybercriminals from committing ACH fraud. It is also simple and easy for employees to implement and use. MFA has become a must for cybersecurity defense strategies across the globe.
- Educate employees on ACH fraud techniques: User error is one of the largest contributing factors of ACH fraud. The best way to combat this is to make sure employees are aware of the latest fraud tactics and preventative measures. These trainings can act as a first line of defense against ACH attacks.
- Set transaction limits and thresholds: Setting parameters around ACH transactions can mitigate the financial losses should fraud occur. Placing limits on the amount of funds that can be transferred without approvals or further checks makes it much more difficult for criminals to target individuals inside your organization successfully.
- Monitor and analyze ACH transactions: Monitoring ACH transactions for suspicious activity can help stop fraud from continuing within your organization. Automated detection tools can flag transactions that deviate from established patterns. Regularly analyzing these transactions can help identify and stop fraud from occurring.
- Verify all identities and bank details: It is important for companies to establish a system to verify all existing and new customers when conducting ACH transfers. This can help identify any foreign or malicious actors posing as legitimate customers seeking to commit fraud.
EHD Can Help
ACH payments fraud is on the rise and must be addressed as soon as possible. Implementing these security best practices can take time, and it’s important that organizations take steps immediately to build their cyber defenses. A few small actions today can save thousands of dollars and countless hours down the road.
Not sure where to start? EHD can help. Reach out to us today for help streamlining this process.
