What security risks should you be aware of when using ACH transactions?

2 How do ACH transactions work?

ACH transactions are initiated by the sender, who provides the recipient's bank account information and the amount to be transferred. The sender's bank then sends a request to the ACH network, which verifies the availability of funds and routes the transaction to the recipient's bank. The recipient's bank then credits or debits the account accordingly. The whole process usually takes one to three business days to complete.

3 What are some common security risks of ACH transactions?

ACH transactions may be vulnerable to fraud and cyberattacks, especially if the sender or recipient's bank account information is compromised. Unauthorized transactions, identity theft, and account takeover are some of the common security risks associated with ACH transactions. Unauthorized transactions involve someone using your bank account information to initiate ACH transactions without your permission or knowledge. Identity theft involves someone using your personal information to open new bank accounts or apply for credit in your name. Account takeover occurs when someone gains access to your online banking credentials and takes over your account. For example, a hacker could use a phishing email to trick you into revealing your account details, a fraudster could use a data breach to obtain your social security number, or malware could infect your device and capture your username and password. It is critical to be aware of these risks in order to protect yourself from potential fraud and cyberattacks.

4 What are some best practices to protect yourself from ACH fraud?

To reduce the risk of becoming a victim of ACH fraud, you should follow some best practices to protect yourself and your business. It is important to monitor your bank statements regularly and report any suspicious or unauthorized transactions as soon as possible, as you may have a limited time frame to dispute or reverse ACH transactions. Additionally, you should use strong and unique passwords for your online banking accounts and change them frequently, as well as use multi-factor authentication if available. Be wary of phishing emails or calls that ask for your bank account information or online banking credentials, and never click on links or attachments from unknown or suspicious sources. Lastly, use a secure and updated device and network to access your online banking accounts, avoiding public or shared computers or Wi-Fi networks.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?