ACH Alert, a provider of fraud prevention solutions, announced yesterday (April 18) at NACHA PAYMENTS 2016 that the amount of fraudulent transactions hit a new record last year.
To the tune of $615 million.
ACH Alert also revealed that the amount of transaction volume more than doubled in 2015 — up to $80 billion, which was a significant increase from the $38.2 billion monitored in 2014. In these cases, that means that ACH Alert has stopped the transactions before they even leave the account (once suspicious activity is suspected).
“One of our primary goals is to provide financial institutions with an electronic payments decision portal they can offer to their clients to help them protect themselves,” said Deborah Peace, AAP, chief executive officer of ACH Alert. “Not only are we doing that, but the success of our solutions is unparalleled. We’re continuing to monitor billions and help successfully prevent millions in fraudulent transactions. This speaks volumes to our products, and we look forward to continuing to expand our business throughout the remainder of the year.”
And, according to the Association of Certified Fraud Examiners, fraud costs are turning into a $994 billion a year market, which is what fraud costs U.S. organizations (7 percent of annual revenues).
Recently announced from ACH Alert was a new partnership with Venture Bank to provide customers with real-time fraud protection through its PRO-TECH solution. With the automated solution, accountholders will have the ability to stop unauthorized debits in real time and have greater control over their accounts. Venture Bank selected ACH Alert’s real-time debit approval process in an effort to replace its existing debit filter product.
The company also recently announced that it has produced record growth numbers — with a more than 350 percent increase in net income in a year’s time.
That increase also came with a client increase of 16 percent in 2015, which helped its income jump 18 percent and its recurring revenues jump by 29 percent in the same time period. The company attributes its success to its ability to tackle the challenges the payments industry faces today, which is increasingly tested by cybercriminals who are flooding to the payments market with fraud.