CHICAGO--(BUSINESS WIRE)--Federal Reserve Financial Services today announced the launch of FedDetect Anomaly Notification for FedACH® Services, a new risk management service that helps financial institutions identify anomalous activity and supplement their fraud detection and alerting tools. This new addition to FedACH Risk® Management Services allows financial institutions to receive notifications via secure email when anomalous FedACH activity is detected.
“This service will put timely information into the hands of financial institutions about anomalies that arise in day-to-day FedACH transactions,” said Mark Gould, FRFS chief payments executive. “We know our customers are increasing their investment in risk management tools, and we’re excited to offer another solution at no additional cost that helps them quickly address potential fraud and improve operational efficiency.”
The new service can help financial institutions catch potential fraud attempts with account verification through micro-entry return and forward-entry monitoring. It can help originating financial institutions adhere to Nacha rules around notifications of change and avoid future rule violations.
“It is important for originators to understand and establish a baseline for normal forward and return volumes of micro-entries and to recognize and react to activity outside of those levels,” said Michael Herd, Senior Vice President of ACH Network Administration at Nacha. “FedDetect Anomaly Notification provides a method for organizations using micro-entries to recognize and prevent suspicious activity. Additionally, one of the top issues that Nacha sees in Rules compliance is an originator’s non-response to a Notification of Change (NOC). This service offers an opportunity to improve compliance with NOCs and increase the overall quality and efficiency of the ACH Network.”
About Federal Reserve Financial Services
As the U.S. central bank, the Federal Reserve System provides payment services and seeks to foster the stability, integrity and efficiency of the nation’s monetary, financial and payment systems. Federal Reserve Financial Services are a comprehensive suite of payment and information services offered to financial institutions that include the FedNow® Service for instant payments, FedACH Services suite for transactions through the ACH network, the Fedwire® Funds Service for electronic funds transfers, the Fedwire Securities Service for processing securities transfers, Check Services for electronic and paper check processing, FedCash® Services for supplying currency and coin, the National Settlement Service for settlement of interbank obligations, and the FedLine® Solutions that allow direct access to these services. Visit FRBservices.org® for additional information.
