March 18, 2024

Fighting Credit-Push Fraud


Jane Larimer

Jane Larimer

President and CEO


ACH Network Logo with background

Not long ago, credit-push fraud wasn’t something you heard payments professionals discussing. That it quickly became part of today’s lexicon shows the importance of keeping our risk management strategies current. A slate of recently approved Nacha Operating Rules will do just that.

First, a little history. For a long time, Nacha focused its ACH Network risk management strategies on unauthorized debits. But recognizing the changing landscape, Nacha released its “Risk Management Framework for the Era of Credit-Push Fraud” in late 2022, focused on increasing awareness of frauds using credit-push payments, such as business email compromise (BEC) and other impersonation. The intent was clear: reduce the number of successful attempts and improve funds recovery where fraud occurs.

That led us to the newly approved Rules. They fit together like the pieces of a puzzle, working toward the goals of reducing and recovering from credit-push fraud. Under these new Rules, all participants in the ACH Network, except consumers, will conduct a base-level of fraud monitoring on ACH payments, including ACH credits. These Rules also acknowledge that Receiving Depository Financial Institutions (RDFIs) have a part to play in monitoring transactions for fraud. In fact, there are situations where RDFIs might be in the best position to identify fraud.  For the first time under the Nacha Rules, RDFIs will have defined requirements to monitor inbound ACH credits.

These new Rules bring new things to think about and, for many organizations, new ways of approaching fraud detection. Nacha is building out educational resources and implementation guidance for the payments community. Nacha’s Risk Management Advisory Group (RMAG) is a great resource for thought leadership and guidance on transaction monitoring.

One look at the news, or the suspicious texts and emails that pour in daily, makes it clear that fraud isn’t going away. I applaud Nacha members for supporting these Rules. Their approval is a significant act in the industry’s self-governance of the ACH Network and will promote the ongoing safety and security of the ACH Network.

Learn more about the new Rules.