To reduce the incidence of frauds that use credit-push payments, Nacha announced ICBA-supported rules for all participants to promote monitoring and recovering fraudulent funds in the ACH payments they receive.
How They Work: The rules:
Establish a base level of ACH payment monitoring on all parties in the ACH Network except consumers.
Follow the flow of a credit-push payment to promote the detection of fraud from the point of origination through the point of receipt at the receiving depository financial institution.
Empower the originating financial institution to request the return of the payment and delay funds availability and allow the RDFI to return suspicious transactions when fraud is detected.
Facilitate transaction monitoring by applying a standard transaction description for ACH credits used for payroll payments.
Impact: Schemes such as vendor and payroll impersonation as well as business email compromise, or BEC, can result in payments being “pushed” from a payer’s account to the account of a fraudster. According to the FBI, BEC was the second-costliest type of cybercrime last year.
ICBA View: ICBA supported the proposed changes released in 2022 and encouraged community bankers to respond to a Nacha survey on the proposal. Community banker survey respondents expressed support for the proposals and cited their importance in maintaining the safety and security of the ACH network.
ICBA Resources: Community bank security resources are available to ICBA members on ICBA's Cyber and Data Security resource center.
