Illinois Bank & Trust
ACH Debit And Credit Fraud Continues To Rise

Help protect your business from being a target of ACH payments fraud.

When it comes to your business, having procedures and tools in place to protect against fraud is always important. Being mindful of your exposure is imperative. Considering today’s evolving business environment, fraud is on the rise and additional measures are being taken to protect the payments process, particularly when it comes to ACH transactions. The Association of Financial Professionals (AFP) 2021 Payments Fraud and Control Survey Report shared that of their respondents:

ach fraud stats

 

ACH FRAUD VIA EMAIL

When compared to the previous year, ACH Debit fraud increased 1% and ACH Credit fraud decreased 3%. This is especially alarming when it comes to the rise of ACH fraud incidences via Business Email Compromise (BEC), which is a scam targeting company email accounts to fraudulently transfer unauthorized funds.

ach fraud stats

 

ADDITIONAL RISKS WITH SAME DAY ACH

Same day payments, regardless of the method, are beneficial for any business. However, as ACH fraud continues to rise, so does the need for companies to be more cognizant of interventions to lessen the risks. While some companies are prepared with mitigation plans, the study found the vast majority are not:

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ach fraud stats
 

USING CONTROLS TO FIGHT ACH FRAUD

The need to have ACH Fraud controls in place is evident. The more proactive you can be to protect your company, the less at risk you are of being a victim, much less a target. Respondents shared use of the following tools and procedures:

ach fraud stats
 

Until now, ACH has not been considered a high-risk payment method because fraudsters have been so focused on targeting checks and wires. While you cannot eliminate the risk entirely, you can certainly take precautions to protect your business. As remote and hybrid work models continue to evolve, a little extra peace of mind can be helpful. It’s true that ACH transactions are quick & easy, but clearly, so is the possibility of financial loss because of it. There are tools and resources available to ensure that doesn’t happen – just don’t wait until it’s too late.


Payments fraud can be reduced, if not avoided completely, by understanding the prevalence and threat of fraud and recognizing prevention as an ongoing, critical business strategy. Financial products, services, and fraud prevention tools and resources are available.

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Source:
Association for Financial Professionals: 2021 Payments Fraud and Control Survey Report

As with all serious financial topics or decisions, be sure to consult with a trusted financial advisor beforehand. The content here is for educational purposes only and is not meant to serve as any sort of advice or endorsement.