DALLAS, Sept. 18, 2018 /PRNewswire/ -- GIACT Systems®, the leader in helping companies positively identify and authenticate customers, today issued a white paper, Securing Faster Payments: Protecting Your Organization and Customers from the Risks of Same Day ACH Debits. The white paper discusses emerging fraud threats to Same Day ACH debit payments as well as GIACT's approach to mitigating fraud.
Launched one year ago, Same Day ACH debits represent a fast, convenient and low-cost method of money transfer. However, Same Day ACH debits also pose a substantial risk to financial institutions, payment processors and customers given the speed and little room for error. Fraudsters are seeing new opportunities to act on Same Day ACH debits, using the shortened settlement period to bypass existing fraud prevention tools.
Unfortunately, for those looking to adopt Same Day ACH debits, legacy account validation processes -- including prenotes and trial deposits -- will be ineffective at identifying and preventing fraudulent debits. The likely result of which will be higher rates of unauthorized and administrative returns, fines and penalties, deteriorating customer experience, and unacceptably high fraud losses.
"Relying on existing fraud reduction or account validation tools will not work," said David Barnhardt, EVP of Product, GIACT. "Organizations planning to offer Same Day ACH debits need to update their existing systems and processes to validate both account status and ownership in real time in order to prevent a surge in fraud."
"Payments are moving faster, and fraudsters are learning how to keep up," said Erika Baumann, senior research analyst, Aite Group. "Banks that offer faster payments capabilities need to ensure their customers frequently review their current fraud control measures to close any gaps that fraudsters could exploit."
GIACT® has been helping companies verify valued customers since 2004. From financial to insurance, to retail, to solutions for your industry, GIACT offers customer intelligence for complete payment confidence. As the leader in providing real-time data to help companies mitigate payment risk and fraud, our OFAC screening, ID verification, account verification and authentication, and mobile verification solutions enable you to focus on providing unmatched customer experiences. Since our founding, we've processed billions of transactions for our more than 1,000 customers. For more information, visit www.giact.com or call 1-866-918-2409. Follow us on LinkedIn and Twitter.