ICBA: Managing your community bank’s ACH and demand draft risk

Would anyone in their right mind attempt to drive a car blindfolded? Well, the answer would be an emphatic "No" because of the dire consequences. So, why do so many banks operate their ACH and check systems completely in the dark? Surely the potential consequences of such actions could be just as dire.

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CU Management Magazine : Prevent ACH Violations from reaching your members

A credit union can maintain its reputation with the people it serves by being proactive

As non-recurring ACH transactions increase, the risk of network violations and fraud increase as well. ACH debit transactions have increased 15.7 percent since last year and continue to grow. In 2006, the top 25 ACH originators' debits totaled more than $6.3 billion.

Credit unions and their members are at risk for violations and fraud from non-recurring transactions, especially if the originating financial institution overlooks the violations. The top 50 originating financial institutions identified by NACHA in 2006 accounted for 59 percent of ACH transactions, a 6.4 percent increase from 2005. With the large number of ACH transactions, the opportunity for errors and violations has become more common. Some institutions may not be consistently following the rules laid out by NACHA and are failing to address ACH violations as they occur.

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American Banker : Laru Reports on Fraud Detection

Many ACH transactions are being originated by financial companies that have no automated fraud detection system in place.

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American Banker Technology News : Laru Moves ACH Risk-Monitoring Service to Web

Laru Corp., a provider of software applications for ACH risk and compliance management, has launched a Web-based version of its transaction risk-monitoring application.

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American Banker: ACH Monitor Paying Off for Fremont Bank

Fremont Bancorp. of Fremont, Calif., said it has reduced research time on automated clearing house transactions and begun to eliminate recurring errors by using specialized software to identify transaction-flow anomalies.

The $2 billion-asset company went live in August with ACH Clarity software from Laru Corp. of El Dorado Hills, Calif., to monitor its transaction flow, said Ann Kolsch, a Fremont vice president.

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Bank Systems & Technology: Fremont Bank Gains Clarity Into ACH Risk

Like many banks, as automated clearing house (ACH) transactions gained momentum, Fremont Bank ($2 billion in assets) found itself facing increased risks from originating payments and receiving deposits. "We were doing manual processes, which is very time-consuming," relates Patti Greenup, director of deposit operations at the Fremont, Calif.-based bank. If bank officials wanted to look at ACH risk exposure over a 60-day period, for example, they had to pull 60 days' worth of records individually by day and by client.

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Bank Systems & Technology: Rollouts: Recent Solution Implementations

To monitor its growing volume of automated clearing house (ACH) transactions, Fremont, Calif.-based Fremont Bank rolled out the ACH Clarity product from Laru Corp. (El Dorado Hills, Calif.). ACH Clarity, which runs as a complementary platform to Fremont's core ACH processing system, monitors incoming and outgoing ACH traffic among participating financial institutions.

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