ACH / Wire Fraud Prevention
Quarantine unusual transactions, including Man in the Browser Attacks
Laru Technologies is the pioneer provider of ACH and Wire transaction monitoring and control tools that put financial institutions back in command of their operations. Laru’s suite of affordable products addresses the specific concerns of risk management, compliance and governance of ACH activity.
Control transactions in real time:
- Permit specific or all SEC codes
- Prevent network violations
- Stop transactions from exceeding specified limits
- Allow transactions to valid receivers only
- Apply multi-level exception handling protocols
- ACH risk exposure per originator or in aggregate
- OCC 2006-39 specific risk assessment
- Return level and activity by originator or third party aggregator
- Network rule violations and prevent costly penalties
- Track ODFI and RDFI transaction trends
Also, Measure and Manage Risk:
Both ODFIs and RDFIs share many of the same concerns regarding credit risks and compliance with NACHA and FDIC rules. Approximately 2,000 financial institutions manage the majority of originators of ACH transactions who process items such as direct deposit of paychecks and an ever-growing number of debit transactions. ODFIs must guarantee that all payments put into the ACH network are authentic. When they are not, the ODFI must manage the correction over a period of time. Financial institutions must protect themselves against loss over the time period from when entries are initiated until its customer funds the account at settlement.
Oversight includes the responsibility to periodically report ACH activities to boards of directors or management committees, manage compliance with NACHA rules, and also to promptly implement new rules and regulations as they occur.
For ODFIs, ACH operations represent a valuable income-producing service. Improved visibility and business intelligence into ACH transactions provides financial institutions with the ability to better manage their ACH operation and offers valuable insights in new product development, marketing and increased profitability for this service.
ACH is a prominent payment method in today’s digital world. To support today’s consumer, RDFIs are required to participate with the ACH network, but not in a direct revenue-producing way. Their primary benefits of participation include customer attraction, service and retention by providing a vital dimension in financial transactions.
The primary RDFI concerns in managing ACH operations are increasing operating efficiency for customer retention activities. Customer service personnel are given the tasks of supporting consumer issues resulting from fraud or network violations, but are seldom given the tools to research and resolve such problems. Maintaining customer confidence and market reputation is of paramount importance to the RDFI.
RDFIs are confronted with many of the same compliance issues as ODFIs, and therefore need a system that is pro-active in rules compliance through advanced identification of potential violations and comprehensive case management tools for locating and managing the major offenders.
Known variously as “Man-In-The Middle,” “Corporate Account Takeover,” or “Man in the Browser” attack; it is the most perplexing problem in on-line banking today. Imagine that a business owner has suffered a corporate account take over. The institution serving this customer receives fraudulent ACH files that appear to come directly from the client. But the financial institution hears about the problem ex-facto, after the funds have vanished. Costly litigation follows, affecting the Financial Institution’s reputation and ultimately leads to loss of customers.
ACH Vision provides an array of tools that allow financial institutions to fight Man-In-The-Browser and Corporate Account Takeover attacks. Laru’s proprietary business intelligence tools flag files that appear to be fraudulent and allow institutions to make informed decisions about these files. Even ACH files that result from errors or omissions of employees may be caught and flagged by the wide range of risk checks provided by the ACH Vision product.
For more information, select Products from the menu.
What Customers are Saying?
“Tompkins Bank (Tompkins
Financial) considers it critical to understand the transaction-level behavior of our originators. Once these patterns are understood, we establish rules to catch anomalies from those patterns. Not only does this methodology help us with our risk containment objectives, it also identifies marketing and revenue opportunities. We use and recommend Laru’s ACH
Clarity to analyze behavior of originators and ACH Vision to trap anomalous transactions.
“We use Laru’s ACH Clarity
software to help us with NACHA rule compliance as well as Operational, Board and Audit reporting. This process automation has not only eliminated several manual steps previously required, but added consistency and accuracy to our
analytical and reporting capabilities. Several reports are used across the Treasury management functions when originator behavior is assessed periodically. Laru’s ACH Vision product assists us with anomaly detection at the transaction level as recommended by the FFIEC. We highly recommend Laru’s Business Intelligence driven ACH Clarity and Vision products for risk management.”
Vice President, Retail Operations
“As an originating and receiving depository financial institution, ACH Clarity has enabled us to manage and monitor growing ACH transactions.”
Treasury Operations Manager
First Community Bank
“For an originating and receiving depository financial institution, ACH Clarity has enabled us to manage and monitor ACH transactions while FileFox is a simple and effective tool to find errors in ACH file formats and repair them.”
Vice President of Electronic Banking
United Bank and Trust
“As the result of a recent audit, we recognized the need to manage our ACH transactions and files with better controls. ACH Clarity provides those necessary and important tools to accomplish this."
Vice President of Treasury Management