Closing in on Fraud: How to protect your financial transactions and validate bank accounts in real-time

In this webinar, industry experts from Early Warning®, Nacha and Rynoh discussed how the payments fraud landscape is transforming and the points of entry fraudsters can exploit during a variety of transactions. Understanding fraudsters’ tactics is crucial for anyone navigating the complex payments landscape.

New fraud schemes demand a new ACH risk management framework

Historically, the focus has been on debit fraud and Nacha supported the financial industry in making progress to mitigate its effects. Despite advancements, debit fraud persists but with strong risk frameworks in place, fraudsters have had to shift toward credit push scenarios, such as business email compromise (BEC) and vendor impersonations.

The Nacha Risk Management Framework aims to combat these fraud schemes by increasing awareness, reducing successful attempts and improving fund recovery. However, credit push fraud differs from debit fraud, emphasizing the need for a holistic approach to fraud mitigation across payment methods.

While real estate transactions are highly regulated, they are also highly desirable to fraudsters

Buying a home is one of the most momentous and complicated purchases someone makes in life. The often-large amounts of money exchanged between parties make real estate dealings a prime target for fraudsters.

Jim Weld, a General Manager from Rynoh, discusses the most common fraud scenarios that occur in the real estate sector, but he explains that implementing fraud mitigation tactics to validate bank accounts is helping catch red flags before it is too late.

Weld says, “one of the things that we're currently building into our systems is bank account verification, allowing my clients to determine who owns the bank account before they're about to send out these payments”.

Consortium-fueled data is the key to better decision making

At Early Warning, we aim to bring trust to the financial moments that matter, and we do this by leveraging the National Shared DatabaseSM resource that offers a wealth of deposit data contributed by over 2,500 financial institutions.

Lawrence Pannell, the Senior Director of Market & Partnership Initiatives at Early Warning, says, “Gone are the days where you should be processing ACH or wire [payments] blindly.” With a sophisticated and predictive fraud solution in place, organizations can gain valuable insight into customers that helps identify patterns and anomalies to predict future behavior.

By working with a Nacha Preferred Partner, such as Early Warning, you can access solutions that will help strengthen your strategy by identifying incremental high-risk transactions, reducing losses due to payments fraud, improving your customer experience and validating bank accounts in real-time.