Aug 09, 2013 Dave King
Automated transactions are now common among businesses of all sizes and in all types of industries, especially as these methods add convenience and efficiency to accounts payable and receivable. However, when ACH cards are introduced into a payments strategy, the risk of fraud can intensify should the business not implement the necessary protections and security protocols.
Bank Info Security recently reported that its latest survey, 2013 Faces of Fraud, found that banks, credit unions and other financial institutions are relying on regulators to protect them from crime. While this is a nice thought, hackers and other threats that target ACH and wire payments evolve much more quickly than regulators could ever hope to pass bills and laws.
According to the news provider, financial institutions have certainly invested more in security protocols at the request of regulators, though the recommendations coming from Washington might not be so accurate or effective. The rate of fraud continues to increase, despite the increased investments, and it is quickly becoming clear that stronger expertise needs to be incorporated into the banking system.
The source added that its survey found the majority of threats are fairly traditional, including phishing attacks, trailing payment card fraud and check fraud. However, Bank Info Security noted that all of these types of threats can often be mitigated by relatively simple procedures and controls, such as employee training, customer education and firewalls.
Any business that manages financial data needs to oblige the statutes of regulatory compliance, but cannot simply stop there. Instead, those companies that go above and beyond the call of duty to incorporate more advanced processes, such as educational seminars for employees and customers that highlight the risks of ACH cards and automated payments, will be much safer.