A friend of mine recently sent me a copy of a JP Morgan Payments Fraud Whitepaper because he likes their viewpoint on the the right way to stop ACH fraud and to razz me for being quoted in the paper. The authors make some very good points in the paper, not the least of which is that …”the customer, not the bank, is most often the initial target of ACH fraud. Mitigating fraud risk becomes exponentially more difficult when the initial compromise is outside of the financial institution’s direct chain of control.”

As we address the attacks we are experiencing from hackers and fraudsters (sometimes one and the same, sometimes working in collaboration) it is important to keep this in mind and create solutions that work not only at the bank level but also at the customer level.  It will be much more effective to fortify the point of attack rather than react after the castle walls have been breached.  The folks at JPMC go on to make some very good suggestions about how to keep commercial customers safe.  You will note that many of them require a partnership with the customer.  Banks forge partnerships with commercial customers for many business reasons.  It’s about time we do so for fraud detection as well so we can together be more proactive in our detection and prevention strategies.

There is also a good set of reference material foot noted in the paper.  I recommend taking a look at that as well.

Are you experiencing higher levels of fraud on commercial accounts?  How do you protect your commercial customers?

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