ACH Receives Boost to Fraud Detection

The Electronic Payments Network (EPN) is to take proactive steps to reduce fraudulent activity in the US ACH system. The organisation has launched its ‘Early Warning Fraud Detection Reporting Service’ to help financial institutions tackle the increasing number of incidents of fraud in the ACH network. Criminals are beginning to become familiar with ways to misuse electronic payment systems, said the EPN. In a recent study conducted by The Clearing House, nearly 38 per cent of large-revenue companies and between 8 and 10 per cent of small and mid-revenue companies experienced unauthorized debits in the six months preceding the study. EPN’s new reporting service has three reports to monitor specific types and amounts of return activity looking for patterns of abuse: corporate unauthorized report; unauthorized threshold report and; invalid account threshold report.


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