More For Your Money | Adams Bank & Trust Newsletter | 3rd Quarter 2022

ACH FRAUD: DON’T LET YOUR FINANCIAL FUTURE COME DOWN TO THE WIRE

by TODD S. ADAMS chief executive officer

Businesses and consumers beware: ACH and wire fraud is on the rise nationwide.

According to the FBI, business email compromise (BEC) including wire fraud is the most common cybercrime.

The Automated Clearing House (ACH) network is used for all kinds of fund transfer transactions from banks to various entities. Businesses depend on ACH payments for everything from direct deposit of paychecks to routine vendor payments.

Wire fraud is a favorite among cybercriminals because it’s relatively easy to attempt, instantaneous, and once it happens, it’s nearly impossible for the business or individual to reverse or recoup the loss. Sending a wire is like electronically sending cash.

How does the thief gain access and steal funds? The

ACH SAFETY CHECKLIST

✔ QUESTION: Be suspicious or cautious of any request for new payment information. Watch for red flags like wrong account numbers or slight differences in the return email address. Remember that banks and other legitimate entities NEVER request information or account confirmation via email.

✔ HOVER: Before clicking on any emailed link, hover the cursor over it so you can see the whole URL of the site you’ll be entering.

✔ VERIFY: Call the vendor to confirm that the request to change routing or account information is legitimate BEFORE sending funds. Use a phone number that you have on record, not one on a new invoice or an email someone sent you. Double-checking the request with another form of communication is a good safeguard.

✔ TRAIN: Help educate your employees so they won’t click on unknown links and emails or download attachments that may contain malware. Train them to identify cyber threats and how they may come into your business.

process usually starts with a “phishing” email that convinces the victim to change the routing or account number on an ACH payment. An attack can also be initiated by phone, text, or instant message. The email or message may appear to be routine and legitimate, but you’ll want to be very cautious whenever changes are requested.

A simple phone call is one of your best defenses. Call the vendor to verify that the request is legitimate before changing any routing or account information and sending funds.

Don’t use a phone number you received in a new invoice or email; use the number that you already have on record.

Wire transfers are generally a safe and efficient way to move funds and pay vendors - if you remain on guard against fraud. You don’t want to develop an ACHing pain in your finances.

QUICK TIP: Adams Alerts help you stay on top of all account activity. You may not notice a fraudulent withdrawal or recurring payment immediately, but Alerts can do the legwork and tip you off in real time. Call us or stop in with any questions about setting up various alerts in our mobile app.