The rules mark the first time financial institutions will have a defined role in monitoring ACH payments.
04/11/2024 8:30 A.M.
1 minute read
Nacha, the governing body for the automated clearing house network, has approved a set of rules to reduce fraud related to business email compromise (BEC) and credit-push payments. The new rules establish a base level of ACH payment monitoring in the ACH Network, according to a press release.
“All participants in the ACH Network have a part to play in reducing the incidence of fraud, and recovering when fraud has occurred,” said Jane Larimer, Nacha President and CEO. “I applaud Nacha’s members for taking this important step of self-governance.”
While the new rules do not shift the liability for ACH payments, for the first time, receiving financial institutions will have a defined role in monitoring ACH payments.
BEC, vendor impersonation and payroll impersonation result in payments being “pushed” from a payer’s account to the criminal’s account. In its announcement, Nacha noted that the FBI’s Internet Crime Complaint Center’s 2023 annual report found there were 21,489 BEC complaints in 2023 totaling $2.9 billion in reported losses, making it the second-costliest type of cyber-crime.
Nacha Executive Vice President Michael Herd told Payments Dive that the new rules will have a gradual roll-out from October through early 2026.
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