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Routing Number: 031315036
Fraud Alert: Criminals Targeting ACH Fraud Controls Using Trusted Company IDs
Protecting our clients from fraud remains a top priority at Orrstown Bank. Recently, financial institutions across the industry have identified a new fraud tactic designed to bypass ACH fraud prevention tools that many businesses rely on every day.
What's Happening
Fraudsters are attempting to process unauthorized ACH transactions using trusted ACH Company IDs that are commonly associated with legitimate business payment activity.
Because many organizations recognize and trust these Company IDs, criminals are leveraging them in an effort to circumvent ACH fraud protection services such as ACH Block and ACH Filter. Their goal is to have fraudulent transactions appear as legitimate activity and slip through existing controls.
Steps Businesses Can Take Today
While fraud prevention tools are highly effective, active account monitoring remains essential. We encourage business clients to:
1. Utilize ACH Fraud Protection Services
Solutions such as ACH Block, ACH Filter, Positive Pay, and other treasury management controls can help prevent unauthorized transactions from posting to your account.
2. Review Exceptions Promptly
Carefully examine all ACH exception items and take immediate action if a transaction appears suspicious or unfamiliar.
3. Review Transactions Regularly
We recognize that reviewing every transaction may not be practical for all clients. However, given recent fraud trends, we encourage you to evaluate your current monitoring practices and consider enhancing your review parameters to identify unusual or unexpected ACH activity. If that is not feasible, we strongly recommend reviewing transaction activity daily and promptly investigating any unfamiliar items. Regular monitoring can help identify suspicious activity early and reduce the risk of fraud losses.
4. Set Appropriate Transaction Limits
When establishing ACH permission rules, be mindful of transaction thresholds. Limits should reflect your normal business activity and risk tolerance rather than automatically approving unusually large transactions.
5. Monitor Account Activity Regularly
Routine account reviews can help identify unauthorized activity quickly, improving the likelihood of preventing losses.
Human Vigilance Remains Essential
Fraud prevention technologies provide a strong first line of defense, but they are most effective when combined with ongoing review and oversight. Criminals continue to develop increasingly sophisticated tactics, making it critical for businesses to carefully verify transactions before they are initiated and when exceptions are presented for approval.
If you have questions about a transaction or believe you may be seeing suspicious activity, contact Orrstown Bank Treasury Management Client Care at 1-844-709-3458 or [email protected] immediately. Prompt action can help reduce risk and protect your business.
We're Here to Help
At Orrstown Bank, we're committed to helping businesses stay informed and protecting your business against evolving fraud threats. By combining advanced treasury management tools with vigilant account monitoring, we can help you keep your accounts secure.
To learn more about Orrstown Bank's fraud prevention and treasury management solutions, contact your Relationship Manager. Or, please reach out to Treasury Management Client Care at 1-844-709-3458 or [email protected].
