Essential Tips for Preventing ACH and Wire Fraud

Essential Tips for Preventing ACH and Wire Fraud

Published October 16, 2023

By Deb Zautke | Vice President/Retail Banking Manager | Pierce Branch

In today’s increasingly digital world, financial transactions have become faster and more convenient than ever before. However, this convenience also brings new risks, with ACH (Automated Clearing House) and wire fraud on the rise.

Fraudsters are continually finding sophisticated ways to exploit vulnerabilities and defraud individuals and businesses. To help you safeguard your finances, we have compiled a list of essential tips to prevent ACH and wire fraud.

Strengthen Your Online Security:

The first line of defense against ACH and wire fraud is to fortify your online security. Utilize strong, unique passwords for all your financial accounts, and consider using a password manager to generate and securely store them. Enable two-factor authentication (2FA) whenever possible to add an extra layer of security.

Educate Yourself:

Stay informed about common fraud techniques and tactics used by cybercriminals. Be cautious of suspicious emails, phone calls, or text messages requesting sensitive information or urging urgent actions. Familiarize yourself with common red flags of phishing attempts and learn to differentiate between genuine communication and fraudulent attempts.

Verify Before Sharing:

Always verify the authenticity of requests before sharing sensitive information or making financial transactions. Independently contact the company or individual purportedly requesting the transfer to confirm their legitimacy. Do not rely solely on contact information provided in an email or phone call; instead, use established, reliable channels to reach out to the party in question.

Secure Your Devices and Networks:

Ensure that your computers, smartphones, and other devices are protected with up-to-date antivirus and anti-malware software. Regularly install software updates to address security vulnerabilities. When using public Wi-Fi networks, avoid accessing sensitive financial information or conducting financial transactions unless you are connected through a secure, private network or a trusted virtual private network (VPN).

Monitor Your Accounts Regularly:

Maintaining a vigilant eye on your financial accounts is crucial for detecting fraudulent activity promptly. Regularly review your bank statements, credit card bills, and other financial statements to identify any unauthorized transactions. Many financial institutions like Midwest Bank offer real-time alerts via email or text message for account activity, which can help you quickly identify any suspicious transactions.

Implement Dual Authorization:

When setting up ACH or wire transfer capabilities with your bank or financial institution, opt for dual authorization. This means requiring multiple individuals within your organization to approve and authorize transactions. By implementing this additional layer of security, you can reduce the risk of unauthorized transfers.

Be Wary of Unsolicited Offers:

Exercise caution when dealing with unsolicited offers, whether via email, phone calls, or social media. Be skeptical of deals that sound too good to be true or require you to disclose personal or financial information. Scammers often lure unsuspecting victims with promises of easy money, sweepstakes winnings, or investment opportunities. If it seems suspicious, trust your instincts and steer clear.

Keep Software Up to Date:

Ensure that your computer’s operating system, web browsers, and other software applications are regularly updated with the latest security patches. Cybercriminals often exploit vulnerabilities in outdated software to gain unauthorized access to your system or install malicious software.

Train Your Staff:

If you run a business or manage a team, educate your employees about the risks associated with ACH and wire fraud. Train them on best practices, such as recognizing phishing attempts, verifying requests for fund transfers, and maintaining strong passwords. Encourage a culture of cybersecurity awareness and provide ongoing education to keep your team informed about emerging threats.

In today’s world of new advances in technology, protecting your business against fraud is more important than ever. But by putting safeguards in place, training your staff, and staying well informed, you can help prevent fraud from disrupting your business.

Deb Zautke

Use Secure Payment Gateways:

When making online purchases or conducting business transactions, ensure you are using secure payment gateways. Look for the padlock symbol in your browser’s address bar, indicating a secure connection. Additionally, consider using secure payment methods like credit cards or reputable third-party payment processors that offer fraud protection.

Protecting your finances from ACH and wire fraud requires vigilance, awareness, and proactive measures. By implementing the tips mentioned above, you can significantly reduce the risk of falling victim to fraudsters. Stay informed, practice good online security habits, and remember that an ounce of prevention is worth a pound of cure when it comes to safeguarding your hard-earned money.

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