BITS ACH Check Conversion Risk Management Toolkit
BITS has released an ACH Check Conversion Risk Management Toolkit (PDF) to "educate financial institutions’ fraud department personnel and investigators about the benefits and risks associated with ACH check conversion." Interestingly, the report includes this comment: "The ACH network, which historically has had minimal fraud, has seen a large uptick in fraudulent transactions, similar to the various types of fraud experienced in the check environment environment."
There are several major concepts outlined in the Toolkit, including: risks and liabilities associated with check conversion from both the Originating Depository Financial Institution (ODFI) and Receiving Depository Financial Institution (RDFI) perspective; a matrix that provides details about the various check conversion methods, and a Frequently Asked Questions (FAQ) section. The FAQ section addresses general questions, as well as those specific to individual customers and business customers and questions related to ODFIs and RDFIs.
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