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ACH Fraud

Updated: Nov 4, 2019


ACH stands for Automated Clearing House; the system allows an exchange of funds between businesses and individuals.

More businesses are using ACH for accounting functions.

When making a vendor payment by ACH, a business no longer has to write a check and put a stamp on it. However, fraudsters now also use ACH to steal funds as well. With just a copy of a check that has an account number and a routing number, a swindler has all he needs to commit fraud. How many checks has your business mailed that are out there that could get in the wrong hands? There is also other ACH scams that originate as emails sounding like a vendor or HR issue requiring ACH payment. You might be thinking, “my bank will protect me; if someone commits bank fraud against my business, I have restitution rights via my bank.”


Did you know that business banking regulations are not the same as they are for individuals? A business has significantly less time to notify their bank of the fraudulent activity and less protection. How much less you ask? An individual has 60 days and a business has between 24-48 hours. The bank is also NOT responsible for getting funds back to you. Read that last sentence again. Some banks are more generous in their ACH fraud policies, is yours?


Now what can you do to protect your business and assets:

· Properly archive or shred copies of checks and documents that have your routing and account number(s).

· Use a business credit card for business expenses. Credit card companies typically have more generous fraud and theft policies.

· Find out what your bank’s policy is on ACH fraud. Do they have any safeguards in place to help combat ACH fraud?

· Review your company’s anti-virus and anti-spyware systems.

· Talk to your staff and educate them on ACH theft.

· Ensure your banking activity is monitored daily.

· Talk to your insurance carrier about fraud coverage for banking/ACH theft.


#ACHfraud #BusinessBanking #BestPractices #BusinessFraud #BankFraud


For more information or to have Sand Dollar Bookkeeping help your business better its controls and processes, please email april@sanddollarbookkkeeping.net or call 239.823.3937.

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Sand Dollar Bookkeeping
April Miller
Phone:  239-823-3937
Email:  april@sanddollarbookkeeping.net
https://www.facebook.com/sanddollarbookkeeping
Fort Myers, FL
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