Five Points Bank Blog

Protect Your Business from ACH Fraud

ACH payments are a fast and efficient way to manage payroll, vendor payments, and customer transactions. But just like any electronic payment method, they can be vulnerable to fraud. Cybercriminals target ACH systems to steal funds, which can result in significant financial losses. Here’s how you can protect your business from ACH fraud.

What is ACH Fraud?

ACH fraud occurs when fraudsters gain unauthorized access to your banking information—such as account and routing numbers—and use it to initiate illegal transactions. Criminals often steal this information through phishing scams, malware, or data breaches.

Common Ways ACH Fraud Happens:

• Unauthorized Transactions: Fraudsters use stolen banking details to initiate transfers without your permission.
• Phishing Scams: Fraudulent emails or phone calls trick employees into revealing sensitive banking information, giving criminals access to your accounts.
• Account Takeovers: Cybercriminals may use stolen credentials or malware to gain access to your accounts, initiate transfers, and lock you out.

How to Protect Your Business:

• Monitor Transactions Regularly: Set up real-time alerts to detect unusual transactions, such as large transfers or payments to unfamiliar accounts.
• Implement Multi-Factor Authentication (MFA): Add extra layers of security by requiring multiple forms of identification to access accounts, making it harder for fraudsters to get in.
• Educate Employees: Train your team to recognize phishing attempts, suspicious emails, and social engineering tactics that criminals may use to gain access to sensitive information.

What to Do if Fraud Happens:

• Notify your bank immediately to freeze your account and investigate the fraudulent activity. Quick action increases the likelihood of recovering stolen funds.
• Document everything related to the fraud, including transaction details, dates, and any suspicious communications.
• File a report with law enforcement and any relevant regulatory authorities to ensure an official record is made.

How We Can Help:

At Five Points Bank, we take your business’s security seriously. We offer real-time transaction monitoring, multi-factor authentication, and fraud alerts to help detect and prevent unauthorized ACH activity.