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Preventing EFT/ACH Financial Fraud

Blog post - April 2024 - ACH Fraud

Safeguarding your organization’s financial assets is paramount. Electronic Funds Transfer (EFT) and Automated Clearing House (ACH) fraud pose significant risks, but with the right strategies, you can fortify your defenses. Let’s explore practical steps to prevent EFT/ACH fraud:

  1. Educate your staff and members.
    • Knowledge is power: Train your team on the dangers of EFT/ACH fraud. Ensure they understand common tactics used by fraudsters.
    • Vigilance matters: Encourage your team to stay alert for suspicious activity related to financial transactions.
  1. Verify transactions thoroughly.
    • Human touch: Always verify payment details before initiating transfers. Pick up the phone and confirm with the recipient.
    • Beware of email requests: Be cautious when receiving payment instructions via email. Verify the legitimacy of the sender independently.
  1. Match payments to invoices.
    • Cross-reference: Before disbursing funds, ensure payments align with legitimate invoices or purchase orders.
    • Vendor validation: Confirm vendor details directly with trusted contacts.
  1. Guard against phishing attacks.
    • Email scrutiny: Train your team to recognize phishing emails. Look out for suspicious links or attachments.
    • Sender verification: Verify the sender’s email address carefully. Fraudsters often create convincing imitations.
  1. Strengthen internal controls.
    • Dual authorization: Implement dual approval for financial transactions. Require two authorized personnel to validate payments.
    • Segregate duties: Separate responsibilities for initiating, approving and reconciling transactions.
  1. Monitor account activity regularly.
    • Stay vigilant: Review account statements frequently. Report any unauthorized or suspicious transactions promptly.
    • Automated alerts: Set up alerts for large or unusual transactions.
  1. Collaborate with your financial institution.
    • Know your options: Work closely with your bank or credit union to explore protective features.
    • Consider ACH blocks and filters: These tools allow you to limit ACH transactions to authorized parties.
  1. Secure your systems.
    • Firewalls and antivirus: Maintain robust cybersecurity measures to prevent unauthorized access.
    • Regular updates: Keep software, operating systems and security patches up to date.
  1. Educate your community.
    • Awareness: Educate your members about EFT/ACH fraud risks during gatherings.
    • Share best practices: Distribute informational materials and conduct workshops.
  1. Report suspicious activity promptly.
    • Timely action: If you suspect fraud, report it immediately to your financial institution.
    • Collaborate with law enforcement: Work with local authorities to investigate and prevent further incidents.

Remember, proactive prevention is your best defense against EFT/ACH fraud. By implementing these measures, you protect your organization’s financial stability and maintain trust within your community.


  1. Federal Trade Commission (FTC).
  2. American Bankers Association (ABA).
  3. U.S. Department of Homeland Security (DHS).
  4. Nonprofit Risk Management Center.
  5. National Cyber Security Alliance (NCSA.
CM Regent Solutions

CM Regent Solutions provides a variety of employee benefit products and third-party claims administration services. Our consultative approach ensures our services fit our customers' needs, including: Group Life Insurance, Disability, Dental, Vision and COBRA.

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