Stay Ahead of ACH Fraud: A Proactive Guide to Detection and Legal

ACH fraud refers to unauthorised electronic transactions executed through the Automated Clearing House network. Criminals use deceptive methods, such as phishing emails or fraudulent requests, to gain access to sensitive banking information. Once they obtain this data, they initiate unauthorised withdrawals or transfers, causing financial losses to individuals and businesses.

Common tactics used in ACH fraud:

1. Phishing emails: Fraudsters pose as legitimate entities, such as banks or service providers, to trick users into revealing account details.
2. Account takeovers: Cybercriminals gain control of a victim’s account by hacking into their online banking credentials.
3. Social engineering: Scammers manipulate victims into sharing sensitive information through phone calls or messages.

Why Bajaj Finserv customers need to take precautions:

As ACH transactions are a popular method for paying EMIs or transferring funds, Bajaj Finserv customers must remain vigilant against fraud attempts. Protecting your account is essential to avoid disruptions in financial operations and safeguard your personal data.

Detecting ACH fraud early can prevent significant financial losses. Here are some common signs to watch out for:

1. Unauthorised transactions:

If you notice unexpected withdrawals or transfers in your account, it could indicate ACH fraud. Always monitor your account statements for discrepancies.

2. Suspicious communication:

Fraudsters often send emails or messages claiming to be from trusted organisations. Look for red flags such as spelling errors, generic greetings, or requests for sensitive information.

3. OTP requests for unknown transactions:

Receiving OTPs for transactions you did not authorise is a clear sign that someone may be attempting to access your account.

4. Irregular activity alerts:

Banks and financial institutions often send alerts for unusual account activity. If you receive such notifications, investigate promptly.

How Bajaj Finserv helps:

Bajaj Finserv employs advanced AI-driven fraud detection tools that analyse transaction patterns and flag irregularities in real time. These tools are designed to protect your account from unauthorised access and ensure secure transactions.

Understanding real-world examples of ACH fraud can help you identify vulnerabilities and take preventive steps. Here are two notable cases:

Case study 1: Business email compromise

A multinational company lost Rs. 5 crore due to an ACH fraud scheme where cybercriminals impersonated the CEO and instructed the finance team to transfer funds to a fraudulent account. The scam was executed through a series of convincing phishing emails.

Case study 2: Account hacking in India

An individual in India reported losing Rs. 2 lakh after clicking on a phishing link that redirected them to a fake banking portal. The fraudsters collected the victim’s login credentials and initiated unauthorised ACH transfers.

Lessons learned:

• Always verify the authenticity of emails or requests.
• Use secure portals for financial transactions.
• Employ AI-driven tools like those provided by Bajaj Finserv for added protection.