US-based credit, collections and accounts receivable platform specialising in fraud prevention Bectran has teamed up with GIACT, part of the London Stock Exchange Group (LSEG), to provide protection against ACH fraud for credit departments.
According to Bectran, ACH remains a popular payment method for B2B finance operations, although is it one of the “most commonly and easily defrauded” payment methods.
It observed that while ACH fraud has historically been associated with consumer transactions, scammers have been targeting B2B credit “lured by the high-dollar transactions and relative ease of ACH forgery”.
GIACT provides real-time account checks and, as part of LSEG, has access to the largest bank account database in the US.
By partnering with GIACT, Bectran is able to give creditors two “layers” of account validation, the first of which verifies each account’s status to indicate whether the account is open and has any risk indicators, such as recent returns, or insufficient funds notices.
Secondly, it attempts to authenticate the account by comparing information about the applicant with the account owner’s information when available and, in doing so, can identify applicants who are using stolen bank account details.
Bectran automatically “flags” transactions that have been identified by GIACT as being high risk and generates a report of GIACT’s findings on each application.
Bectran’s chief executive officer Louis Ifeguni said: “Partnering with GIACT marks a significant step in Bectran’s commitment to streamlining credit risk management.
“Identifying potential ACH fraud automatically and reliably gives departments a profound additional security in their decisioning.”
“GIACT brings the trustworthiness of the London Stock Exchange Group to credit departments using ACH,” added Ali Kidwai, product and implementation senior manager at Bectran.
“You can move through credit reviews faster and more securely, trusting that bank accounts are verified thoroughly.”
