Latest news with #Nacha
Yahoo
16-05-2025
- Business
- Yahoo
Banks struggle to talk about fraud
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Financial institutions are facing a flood of fraud, from push-payment scams to business email compromises to bad checks. Nonetheless, they're often stymied in trying to work together to root out bad actors. That was painfully clear to attendees listening to several panel discussions at the Nacha Smarter Faster Payments conference last month. The industry event attracted about 2,100 payments, bank and credit union professionals between April 27 and April 30 in New Orleans. Push-payment schemes, also known as credit-push fraud, that move over Nacha's ACH and other electronic payment rails have been particularly problematic. In these situations, consumers and companies are duped into sending payments to criminals under false pretenses, but because they do so voluntarily, it's more difficult to combat. It's become a pain point partly because the financial system revolves around monitoring for crooks sending payments, not those receiving them. Today, 'mule' accounts belonging to unsuspecting holders are used by criminals to receive funds that are quickly drained. Payments fraud in the U.S. is a multi-billion-dollar problem, especially among elderly consumers, according to the Federal Trade Commission. Fraudsters tap social media and artificial intelligence to their advantage to prey on consumers and corporate clients alike, with schemes becoming increasingly sophisticated. Tim Thorson, a senior vice president of payments risk at Regions Bank, lamented the problem during a Nacha panel discussion regarding that organization's plan to implement new rules addressing fraud. 'Credit-push fraud can take a small business down, and I've seen it happen, and I know probably many people in here have, and that's an extremely anti-social thing to happen to a small business, because the country's built on small businesses,' Thorson said. Part of the problem is that federal and state laws intended to protect customer confidentiality and thwart money-laundering may be interpreted in ways that hamper communication between financial institutions. 'I wish there was something that we could do amongst ourselves that would amount to something of a safe harbor, where we could talk to each other the way we used to before all the privacy laws came down 25 years ago,' Thorson said. 'We're still paranoid about divulging the information on a mule (account), for instance, on somebody clearly taking money that didn't belong to them.' Fraudsters aren't protected by such laws, but it's often difficult to determine quickly whether fraud between different institutions' accounts is happening. That's where more communication might help. 'One of the things that we identify as a potential roadblock to some potential sharing is just the sense that folks are not clear what they can share with law enforcement, and how really, they can work together to try and make a broader difference,' Scott Anchin, a vice president of operational risk and payments policy at the Independent Community Bankers of America, said during a separate panel discussion. Anchin's trade group created a task force with representatives from some 50 community banks nationwide to discuss fraud, he said during the panel focused on enabling institutions to work together. The cohort has also partnered with the non-profit International Association of Financial Crimes Investigators to create a guide for bank members, he said. Even though banks share staff contact information through a Nacha registry designed to connect workers from different banks and credit unions, such registries aren't always complete or up to date, often frustrating employees who try to use them. All too often bank employees trying to reach industry peers may have access only to a customer service line that devolves into a series of deadends. The situation may become more difficult when banks are intermediaries for unlisted fintechs. Nacha panelists noted a 'cultural' problem in the industry with banks and workers not interested in talking to peers, for whatever reason, including potentially competitive instincts. 'Instead of putting your direct line (in the registry), you put the call-tree-hell (number) because you hope that nobody will sit through it, but that doesn't get us anywhere,' said William Mills, a vice president for deposit and ACH operations at Premier Banks in Maplewood, Minnesota. Mills, who spoke on the Nacha rule panel, said he endured conversations with 18 different bank representatives at a large financial institution over four hours to resolve one issue. Conference attendees suggested larger institutions may be more guarded because they're seeking to safeguard their proprietary data. When asked about banks sharing information to combat fraud during an interview last month, JPMorgan Chase's payments technology head, Sri Shivananda, pointed to the government as the linchpin for information-sharing, via the Homeland Security Department's Cybersecurity and Infrastructure Security Agency. As for JPMorgan's role, he seemed to favor maintaining an edge on rivals. 'We have a competitive advantage on the data that we see through the number of transactions that we support on the platform,' he said. A major government public campaign to call attention to the rising fraud problem, or to address it, has been lacking, some panelists contended. There is no federal government office coordinating a response to this multi-billion-dollar crisis, said Paul Benda, an executive vice president of risk, fraud and cybersecurity policy for the American Bankers Association. The situation reflects a 'complete and utter failure' of the national government to spearhead a nationwide solution, he said. For its part, Nacha is implementing new rules to address the mushrooming payments fraud, asking financial institution members to submit plans for procedural changes. The rules aimed at changing financial institutions' processes and policies are being phased in, with additional deadlines next year. Unfortunately, many financial institutions aren't ready to make the improvements, according to Dominic Plumeri, who audits banks on the ACH Network in his role as vice president of member services at not-for-profit payments association Southern Financial Exchange. Nacha is also seeking to spur more information-sharing among its members by adding a new online means of connecting with each other to report fraud and attempt to recover funds. In addition, some financial institutions are turning to outside software vendors to help develop technology to flag potential account problems, sometimes based on changes in payment behavior, like increases in volumes or values being received or sent by customers. In the meantime, though, speakers at the conference said they fear losses are contributing to an expansion of organized crime rings, fueling the problem. Karen Helmberger, director of fintech and payments at the industry fraud-fighting organization FS-ISAC, emphasized the personal and financial tolls the crimes take on people. 'We are losing generational wealth across the sector in this country and it's going to these scam facilities wherever they may be,' said Helmberger. She urged attendees to focus not on the uncomfortable feelings they have about communicating, but rather on the 'really bad things' that happen when they don't. Recommended Reading ACI, states reach $20M in settlements over payments mishap Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-04-2025
- Business
- Yahoo
Paze aims to pump up the volume with Fiserv
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Paze, the digital wallet launched last year by Early Warning Services, has loaded 150 million debit and credit card accounts onto its nascent system, according to an EWS presentation at Nacha's Smarter Faster Payments Conference. Now, those bank customer card holders can opt into the wallet if they're interested in using it. More big banks are expected to link to Paze later this year, Early Warning's Chief Partnership Officer Eric Hoffman said Sunday during a panel discussion at the conference. He spoke alongside Deva Annamalai, Fiserv's head of client strategy and solutions for digital payments. The processor is partnering with EWS to attract more banks to offer the digital wallet to their customers for online purchases. With Fiserv, there is 'exposure to thousands of banks,' Hoffman said in an interview after the panel discussion, explaining how additional banks will disclose working with Paze as they announce that the service is available to those banks' customers. The latest card count is up from 125 million cards connected last October. Early Warning Services has been eyeing the 150 million card goal for some time because the accounts belong to customers of EWS's bank owners, but now it will set its sights higher, to add more card credentials. As Fiserv helps bring its bank clients onto the Paze system, it will benefit from the increased transaction volume it processes through the digital wallet. Scottsdale, Arizona-based Early Warning Services has been building the Paze system since at least 2022, with a slow roll-out to its bank owners since its launch last September. The seven major banks that own EWS are Bank of America, Capital One, JPMorgan Chase, PNC Bank, Truist, U.S. Bank and Wells Fargo. Those EWS banks also developed the bank-to-bank payments system Zelle, which sent $1 trillion between users last year. Paze got a lift last year after the arrival of a new leader, Serge Elkiner, who was tapped to become its general manager. Hoffman is also somewhat new to the project, having arrived just as Paze was launching last year. He's bringing experience from his work as a business development executive for Apple Pay. Some 70% of U.S. consumers don't use a digital wallet so there is a broad opportunity to attract new users without having to do battle with some of the long-time rivals in the field, namely Apple Pay and PayPal, Hoffman said. 'They may use their card on file (online), but they're not using digital wallets – this is the consumer that we're going after,' he explained. Paze will be directed at consumers between 35 and 65 years-old who tend to be wealthy, and have been 'protectionist' in their thinking about digital wallets, Hoffman said. This group has generally avoided using digital wallets so far, but they're likely to sign up for Paze if it's offered by their banks, just like they did with Zelle, he said. 'Consumers trust their banks – that's what we're hanging our hat on,' he said. When asked why it's taken so long to get the system rolled out, Hoffman suggested it was simply time spent developing the Paze technology. He conceded during the discussion that the Paze team is 'still closing some technical gaps.' He also noted that getting bank card issuers up and running with Paze at the same time EWS was trying to add merchants to the system was no easy task. Merchants offering the Paze payment option to their customers so far include retailers Sephora and Fanatics. Hoffman expects Paze will also add more merchants to the online Paze shopping ecosystem later this year. Recommended Reading Paze gets new leader amid slow start
Business Wire
28-04-2025
- Business
- Business Wire
Nacha and the U.S. Faster Payments Council: 161 Accredited Faster Payment Professionals (AFPPs) Pass Inaugural Exam
NEW ORLEANS--(BUSINESS WIRE)--Today, Nacha and the U.S. Faster Payments Council announced that 161 payments professionals successfully passed the inaugural Accredited Faster Payment Professional (AFPP) exam, marking an important milestone in demonstrating expertise and commitment within the faster payments ecosystem. The AFPP credential demonstrates the growing emphasis on professional education and industry excellence in an era where faster payments are becoming a cornerstone of commerce and economic activity. The AFPP accreditation, developed as a collaboration between Nacha and the U.S. Faster Payments Council (FPC), with assistance from Payments Associations and other leading payments industry experts and stakeholders, sets a new standard for professionals dedicated to advancing secure, efficient and innovative faster payments solutions. The exam focuses on a variety of payments rails used across the United States, including Same Day ACH, FedNow, RTP and Push-to-Card Debit Card Networks. This credential demonstrates the growing emphasis on professional education and industry excellence in an era where faster payments are becoming a cornerstone of commerce and economic activity. 'The AFPP designation exemplifies the dedication of industry professionals committed to leading the evolution of faster payments. Passing this exam is a significant feat, and these individuals have validated their expertise and proven their passion for shaping the future of payments,' said Jane Larimer, President and CEO of Nacha. 'Their hard work paves the way for stronger collaboration and innovation in our industry.' The FPC also recognized the significance of this accomplishment. FPC CEO and Executive Director Reed Luhtanen commented, 'We congratulate these pioneering AFPPs for their achievement. Faster payments are vital to improving the lives of consumers and the efficient operation of businesses. The AFPP accreditation reflects a shared commitment to fostering a secure and accessible faster payments ecosystem. This accomplishment is a testament to the expertise of these leaders in the field.' As the faster payments landscape grows and evolves, this achievement begins a new chapter in industry excellence and innovation. In the first quarter of 2025, Same Day ACH continued its growth trajectory, recording 326 million payments valued at $897 billion. Those represent increases of 19.1% and 24.8% respectively over the same time period in 2024. Likewise, more than 100 million instant payment transactions were conducted in the United States in the first quarter of 2025. For more information about the AFPP certification program or how to get involved, visit About Nacha Nacha governs the thriving ACH Network, the payment system that drives safe, smart, and fast Direct Deposits and Direct Payments with the capability to reach all U.S. bank and credit union accounts. There were 33.6 billion ACH Network payments made in 2024, valued at $86.2 trillion. Through problem-solving and consensus-building among diverse payment industry stakeholders, Nacha advances innovation and interoperability in the payments system. Nacha develops rules and standards, provides industry solutions, and delivers education, accreditation, and advisory services. About the U.S. Faster Payments Council (FPC) The FPC is an industry-led membership organization whose vision is a world-class payment system where Americans can safely and securely pay anyone, anywhere, at any time and with near-immediate funds availability. By design, the FPC encourages a diverse range of perspectives and is open to all stakeholders in the U.S. payment system. Guided by principles of fairness, inclusiveness, flexibility and transparency, the FPC uses collaborative, problem-solving approaches to resolve the issues that are inhibiting broad faster payments adoption in this country. For more information, please visit
Yahoo
27-04-2025
- Business
- Yahoo
Phixius by Nacha Expands Bank Account Validation Coverage With ValidiFI
NEW ORLEANS, April 27, 2025--(BUSINESS WIRE)--Phixius by Nacha—a secure, peer-to-peer payment information network—announced today that ValidiFI is live on the Phixius network as an additional provider of bank account validation. Phixius now offers multiple providers of account validation, expanding the coverage of account validation data for Phixius users. "Phixius provides the connective tissue to reach multiple account validation service providers, addressing gaps in coverage for validating U.S. bank account information," said Rob Unger, Managing Director of ACH Network Development at Nacha. "With multiple data sources, Phixius assists organizations in mitigating payment fraud, helping reduce ACH returns, and improving the quality of ACH transactions." "This partnership with Phixius enhances the distribution of ValidiFI's account validation solutions," said John Gordon, CEO of ValidiFI. "Our offerings provide extensive coverage of bank accounts, combined with intelligence to identify fraud and assess risk." With this new integration with ValidiFI, Phixius is enhancing its value proposition to users to: Validate bank account information in the United States instantaneously. Mitigate payment risk when sending and receiving payments to new accounts. Comply with the Nacha Operating Rules & Guidelines, including the requirement to validate account information for Internet-initiated ACH debits (WEB debits). Phixius streamlines the validation process by: Allowing users to access multiple data sources through a single, standard API gateway. Enabling connectivity to multiple data sources without centralized data aggregation. Maintaining strong data security practices through SOC 2 Type 2 certification for security, confidentiality, and privacy. To learn more about Phixius and schedule a free demo, visit Attendees at Smarter Faster Payments, taking place in New Orleans April 27 to 30, can stop by the Nacha Booth No. 844 or the ValidiFI booth No. 913 to learn more about the partnership and get a demo. About Nacha Nacha governs the thriving ACH Network, the payment system that drives safe, smart, and fast Direct Deposits and Direct Payments with the capability to reach all U.S. bank and credit union accounts. There were 33.6 billion ACH Network payments made in 2024, valued at $86.2 trillion. Through problem-solving and consensus-building among diverse payment industry stakeholders, Nacha advances innovation and interoperability in the payments system. Nacha develops rules and standards, provides industry solutions, and delivers education, accreditation, and advisory services. About ValidiFI ValidiFI is the leading provider of predictive bank account and payment intelligence. Leveraging the Omni Platform, ValidiFI empowers organizations and financial institutions with actionable insights to help validate bank accounts, detect fraud, and assess credit risk. By analyzing the intricate connections between bank accounts, consumers, and payment performance, ValidiFI offers a more comprehensive view. ValidiFI serves as a trusted partner, unlocking the power of predictive bank account and payment intelligence through credentialled and non-credentialed solutions, enabling more confident transactions. For more information, visit View source version on Contacts Dan RothNacha571-579-0720media@ Sign in to access your portfolio
Business Wire
27-04-2025
- Business
- Business Wire
Phixius by Nacha Expands Bank Account Validation Coverage With ValidiFI
NEW ORLEANS--(BUSINESS WIRE)--Phixius by Nacha—a secure, peer-to-peer payment information network—announced today that ValidiFI is live on the Phixius network as an additional provider of bank account validation. Phixius now offers multiple providers of account validation, expanding the coverage of account validation data for Phixius users. "Phixius provides the connective tissue to reach multiple account validation service providers, addressing gaps in coverage for validating U.S. bank account information," said Rob Unger, Managing Director of ACH Network Development at Nacha. "With multiple data sources, Phixius assists organizations in mitigating payment fraud, helping reduce ACH returns, and improving the quality of ACH transactions.' 'This partnership with Phixius enhances the distribution of ValidiFI's account validation solutions,' said John Gordon, CEO of ValidiFI. 'Our offerings provide extensive coverage of bank accounts, combined with intelligence to identify fraud and assess risk." With this new integration with ValidiFI, Phixius is enhancing its value proposition to users to: Validate bank account information in the United States instantaneously. Mitigate payment risk when sending and receiving payments to new accounts. Comply with the Nacha Operating Rules & Guidelines, including the requirement to validate account information for Internet-initiated ACH debits (WEB debits). Phixius streamlines the validation process by: Allowing users to access multiple data sources through a single, standard API gateway. Enabling connectivity to multiple data sources without centralized data aggregation. Maintaining strong data security practices through SOC 2 Type 2 certification for security, confidentiality, and privacy. To learn more about Phixius and schedule a free demo, visit Attendees at Smarter Faster Payments, taking place in New Orleans April 27 to 30, can stop by the Nacha Booth No. 844 or the ValidiFI booth No. 913 to learn more about the partnership and get a demo. About Nacha Nacha governs the thriving ACH Network, the payment system that drives safe, smart, and fast Direct Deposits and Direct Payments with the capability to reach all U.S. bank and credit union accounts. There were 33.6 billion ACH Network payments made in 2024, valued at $86.2 trillion. Through problem-solving and consensus-building among diverse payment industry stakeholders, Nacha advances innovation and interoperability in the payments system. Nacha develops rules and standards, provides industry solutions, and delivers education, accreditation, and advisory services. About ValidiFI ValidiFI is the leading provider of predictive bank account and payment intelligence. Leveraging the Omni Platform, ValidiFI empowers organizations and financial institutions with actionable insights to help validate bank accounts, detect fraud, and assess credit risk. By analyzing the intricate connections between bank accounts, consumers, and payment performance, ValidiFI offers a more comprehensive view. ValidiFI serves as a trusted partner, unlocking the power of predictive bank account and payment intelligence through credentialled and non-credentialed solutions, enabling more confident transactions. For more information, visit
