CapitalMark Employs ACH COPS to Protect Business Clients

CapitalMark Bank & Trust has partnered with Chattanooga-based technology provider ACH Alert to provide banking clients added protection against fraud on automatec leadring house (ACH) credit entries. CapitalMark first partnered with ACH Alert in 2010 to provide clients with added protections against unauthorised incoming ACH debits. When ACH Alert announced its newest service, ACH credit origination positive-pay service (COPS), CapitalMark became one of the first financial institutions in the US to offer the solution with out-of-band authentication.

Corporate account takeover, man-in-the-browser and man-in-the-middle are terms used to describe a new type of fraud taking shape. Businesses are being randomly targeted by fraudsters who infiltrate computers to view and record the sites visited capturing financial data keyed by the customer. The fraudsters steal the business’ login credentials and access the online banking application posing as the client. The fraud is perpetrated when the criminal manipulates existing ACH batches or creates new batches to direct funds out of the business’ account.

A financial institution already employing industry best practices would have no reason to believe the transactions were not originated by their client, when online banking ID and pass codes are correctly used. Until now the technology available to protect against such attacks has been limited.

R Craig Holley, CapitalMark’s chairman, president and chief excutive officer (CEO), said: “We are pleased to invest in this added technology to underscore our on-going commitment to work closely with our clients as a trusted partner, placing barriers to fraudulent attacks against the businesses we serve.”


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