Fraud

What is ACH fraud?

Unauthorized or deceptive transactions conducted through the Automated Clearing House (ACH) network, which processes electronic fund transfers between banks. ACH fraud includes unauthorized debits, account takeover-driven transfers, and payroll diversion schemes. Because ACH transactions are batch-processed and can be reversed, fraudsters exploit the settlement window to move funds before detection.

How it works

Example: A fraudster obtains a victim’s bank routing and account numbers through a phishing email, then initiates a series of small ACH debits to test the account before draining a larger sum.