Frauds Dangers Connected with ACH and Wire Transfer

Every business bear the risk of payment frauds, due to nature of business or some other reasons. Almost three quarters of respondents were targets of attempted or actual fraud, while 42 percent reported increased fraud attempts. Fraudulent checks were used most often, followed by wire transfers, cards and ACH.

With high-tech global technology in payment industry it made check acceptance and clearance cheap and easy, but also it made easy to commit fraud activities. Increased in the use of automated transaction coms with an increased in fraudulent activities. The FBI saw a 38 percent increase in wire transfer fraud in 2011 alone. The 2014 Association for Financial Professionals Payments Fraud and Control Survey reported that payment fraud from ACH debits in 2013 affected 22 percent of responding organizations, while payment fraud from ACH credits in 2013 affected 9 percent. Payments from wire transfers in 2013 affected 14 percent of respondents, up from 11 percent in 2012.

ACH and wire transfer appears very similar with few differences. Wire transfer move money between financial institutions. With ACH Transaction information is sent in a batch to an automated clearing house, which clear the ACH payments and sends to bank and the clearing house acts as a middle man takes long time up to 3 business days to clear the payments. 

Being popularity of these types of payments there is greater accessibility of fraudulent activities. The primary targets are small- to medium-sized banks, businesses, schools and other organizations. These targets often rely on traditional security systems and applications, therefore increasing their risk.

Now Get Paid Without Going to Bank

ACH known as “Automated Clearing House” and fund transfer system for E-payments and direct debit and credit payments. Business people are taking more and more advantage of ACH processing for sending and receiving payments around the world. Every business while it is retail or online store is taking advantage of ACH processing to receive payment from customers. Business owners can even pay their suppliers safely and securely in a timely manner. While you do everything online why to waste time in dealing with paper checks and bank trips.
Electronic check payments can also be processed day or night meaning you can make money even when your business and the banks are closed. ACH gives you the ability to process your transaction more effectively and securely. Improve your cash flow and quick access your money, and same time increase on time collections. You will also get bounce check notification within 48 hours. Electronic processing keeps your valued money safe and secure.