NICE Actimize, a NICE Systems (NASDAQ:NICE) business and the largest and
broadest provider of a single financial crime, risk and compliance
software platform for the financial services industry, announced the
results of its Same-Day ACH Fraud Preparedness Survey conducted among
U.S. financial institutions this spring, showing that more than 93
percent of financial institutions anticipate that new fraud threats will
emerge as a result of the upcoming transition to Same Day ACH due to
launch in September 2016. ACH (Automated Clearing House) is an
electronic network for financial transactions in the United States.
Coupled with these expected fraud-related challenges, more than 54
percent of respondents to the survey also stated they do not have the
appropriate fraud tools necessary to handle Same Day ACH transactions,
the survey revealed. The survey also found that today 70 percent of
respondents use manual review to detect ACH fraud, but that number is
expected to drop to 55 percent for Same Day ACH. Meanwhile, 70 percent
of respondents expect to use intelligent authentication as a method to
“We know from other markets, such as the U.K., that the launch of Faster
Payments is aligned with an uptick in fraud attacks and losses,”
explained Erez Zohar, Vice President & General Manager, Fraud &
Cybercrime Management Solutions, NICE Actimize. “This means that U.S.
financial institutions need to be prepared with fraud strategies on day
Where are the likely hot spots that new threats could hit? According to
Zohar, new fraud threats could be driven by such new Same Day ACH
services as Same Day Payroll and account-to-account transfer, which
could open up new holes that fraudsters can target. In commercial
banking, there could also be a rise in social engineering, focused on
corporations that initiate Same Day Payroll.
Noting the anticipated pain points that could occur as the Same Day ACH
environment rolls out, NICE Actimize recommends four ways that financial
institutions can help safeguard their transactions:
Prepare an authentication management approach that will allow good
customers to access same day ACH services, while stopping fraudsters
from entering the system.
Don’t rely on manual review for Same Day ACH transactions. While
manual review has been effective for traditional ACH where banks have
48 hours to flag and stop fraud – manual processes won’t work in a
Employ fraud tools that use behavioral analytics to effectively spot
anomalies indicative of fraud.
Design fraud operations specific to a Same Day environment: you must
be able to prioritize and analyze alerts more quickly than ever before.
NACHA, The Electronic Payments Association, is the governing body which
vets industry guidelines for moving ACH payments faster along with the
Federal Reserve. NACHA’S newest ruling, to go into effect in three
stages beginning in September 2016, will enable the same day processing
of virtually any ACH payment. In 2013, this network processed nearly 22
billion ACH transactions with a total value of $38.7 trillion.
About NICE Actimize
NICE Actimize is the largest and broadest provider of financial crime,
risk and compliance solutions for regional and global financial
institutions, as well as government regulators. Consistently ranked as
number one in the space, NICE Actimize experts apply innovative
technology to protect institutions and safeguard consumers and investors
assets by identifying financial crime, preventing fraud and providing
regulatory compliance. The company provides real-time, cross-channel
fraud prevention, anti-money laundering detection, and trading
surveillance solutions that address such concerns as payment fraud,
cybercrime, sanctions monitoring, market abuse, customer due diligence
and insider trading. Find us at www.nice.com/actimize.
About NICE Systems
NICE Systems (NASDAQ: NICE) is the worldwide leading provider of
enterprise software solutions that empower organizations to make smarter
decisions based on advanced analytics of structured and unstructured
data. NICE solutions help the world’s largest organizations deliver
better customer service, ensure compliance, combat fraud and safeguard
citizens. Over 25,000 organizations in more than 150 countries,
including over 80 of the Fortune 100 companies, are using NICE
Trademark Note: Actimize, the Actimize logo, NICE and the NICE
logo are trademarks or registered trademarks of NICE Systems Ltd. and/or
its subsidiaries. All other marks are trademarks of their respective
owners. For a full list of NICE Systems’ marks, please see: http://www.nice.com/nice-trademarks.
This press release contains forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements, including the statements by Mr. Zohar, are
based on the current expectations of the management of NICE-Systems Ltd.
(the Company) only, and are subject to a number of risks and
uncertainties that could cause the actual results or performance of the
Company to differ materially from those described herein, including but
not limited to the impact of the global economic environment on the
Company’s customer base (particularly financial services firms) and the
resulting uncertainties; changes in technology and market requirements;
decline in demand for the Company’s products; inability to timely
develop and introduce new technologies, products and applications;
difficulties or delays in absorbing and integrating acquired operations,
products, technologies and personnel; loss of market share; pressure on
pricing resulting from competition; and inability to maintain certain
marketing and distribution arrangements. For a more detailed description
of the risk factors and uncertainties affecting the company, refer to
the Company’s reports filed from time to time with the Securities and
Exchange Commission, including the Company’s Annual Report on Form 20-F.
The forward-looking statements contained in this press release are made
as of the date of this press release, and the Company undertakes no
obligation to update or revise them, except as required by law.