![]() Both the FBI and the FDIC warned of the increase of these types of frauds late in 2009. Many larger schemes use "mules," which are hired accomplices, usually through work-at-home schemes to either knowingly or unknowingly move funds on their behalf, to move the funds to their overseas accounts.ĪCH fraud has been a growing trend, most likely because it is fairly easy to accomplish and can go undetected. They use this information to create their own login and transfer funds out of the accounts or apply payments through the accounts. Once the Trojan is in place, the fraudsters then log keystrokes, looking for logins for bank accounts. More complex ACH fraud, perpetrated by rings, begins with a computer Trojan that fraudsters seek to place on a computer, usually through some type of "phishing" attack launched through email or through an infected website. ![]() This type of fraud can occur over the phone or through web transactions. In the simplest form, the fraudster uses your bank account and routing numbers to initiate payments for purchases or to pay debt by giving these numbers to the desired vendor. All the fraudster needs is an account number and a bank routing number to execute the fraud. ACH fraud, unfortunately, is very easy to execute. Simply defined, ACH fraud is any unauthorized funds transfer that occurs in a bank account. An ACH transaction is an electronic funds transfer between bank accounts using a batch processing system. What is involved in ACH fraud? How is this crime perpetrated and how can businesses and individuals protect their information? CSO spoke with Deb Geister, director of fraud prevention and compliance solutions at LexisNexis, for more information about this growing problem.ĬSO: What exactly is ACH fraud and how does ACH fraud happen? ACH, of course, stands for Automated Clearing House network.
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