Behavior-based fraud prevention for ACH transactions

Guardian Analytics announced FraudMAP ACH. Using the same behavior-based anomaly detection technology proven to prevent fraud at hundreds of banks and credit unions in the online and mobile banking channels, FraudMAP ACH automatically analyzes ACH batches and transactions and prioritizes the highest risk payments for review.

NACHA, the Electronic Payments Association, released Sound Business Practices for Implementing Provisions of the Supplement in July 2012 in which they reinforce the need for anomaly detection capabilities called out in the 2011 FFIEC Guidance Supplement. The practices encourage FIs to “monitor accounts for unusual and out-of-pattern transaction flows.” FraudMAP delivers precisely these capabilities by:

  • Using the company’s proprietary analytics, Dynamic Account Modeling, FraudMAP ACH monitors originator and recipient behavior for anomalies relative to typical behavior.
  • Automatically identifying high risk batches and individual transactions buried deep within very large ACH files, including payments where only details of single line items have been modified.
  • Eliminating the need to maintain rules, limits, and negative lists and then manually comb through long exception reports.
  • Focusing payment staff efforts on the most suspicious batches and transactions by rank ordering alerts and providing rich details on the unusual activity and client’s payment history.

“The recent FS-ISAC Account Takeover Task Force survey performed by the American Bankers Association shows the instances of corporate account takeovers are significantly increasing year over year,” said Bill Nelson, President and CEO of Financial Services Information Sharing and Analysis Center (FS-ISAC). “The study also shows that investing in advanced layers of fraud prevention reduces risk and stems losses from attacks on ACH payments.”

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