Blogs

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According to the White Paper produced by the Federal Reserve near the end of 2018, the typical victims of ‘synthetic identity fraud’ are children, the elderly, or the homeless. We are all familiar with identity fraud in one way or another, but what is synthetic identity fraud? It seems that the U.S. is a better target due to the static nature of our identities because we rely on personally identifiable information (PII) like Social Security numbers. In the past this type of fraud was perpetrated face-to-face but has grown due to the Internet. McKinsey estimates that it is America’s fastest growing financial crime even though it is hard to track and ...
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What’s next in payments? It’s a question we should be continually asking ourselves in today’s rapidly evolving payments landscape.  As new efforts unfold, it is critical that we stay on the cutting edge of new developments through continuing education, especially in the areas of financial technology and innovation, both of which are growing exponentially.   At last year’s   Innovating Payments Conference , we addressed a number of topics that fall into such categories as artificial intelligence, API, and blockchain, to name a few. A FinTech panel and open forum discussions also allowed for the free exchange of ideas as attendees explored the intersection ...
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Education is critical to professional development. Personally, I know that when I earned my Accredited ACH Professional (AAP) qualification, I feel like it launched my career. Accreditation brings so much opportunity to advance knowledge and be the go-to person for your financial institution. That’s just one reason I’m so enthusiastic about others getting accredited and hopefully feeling similarly; but I’m supportive of all education efforts that advance knowledge of our industry. Because it’s changing every day, and it can seem difficult to stay on top of all of it. Programming notes Our education programs aim to cover each step in the life of ...
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In today’s dynamic financial services landscape, there’s always an emerging opportunity or a new technology. And while not all new trends will stick, financial institutions must evaluate changes in the market to ensure they don’t let a new business opportunity pass them by or an emerging risk miss their filter. There’s a lot to stay up-to-speed on as the industry continues its transformation . At NEACH, it’s our job to stay on top of the trends that impact FIs at strategic and operational levels. Through education and member events, we address timely and relevant topics. For example, our Payments Management Conference (PMC) is a crucial way to learn about ...
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Afinis – V1.0

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Afinis is a membership-based standards organization, designed to develop implementable, interoperable, and portable standards across operating environments and platforms. Afinis provides a community for thought leadership on the shared goals of expanding efficiency, surety, safety and interoperability within the financial services industry. NEACH is one of its members. What that means in layman’s terms is that when folks from various segments of the financial services world define a need for an API (Applications Programming Interface), they will hash out the details amongst themselves and make it happen. Once these APIs are developed, they will be ...
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I recently had the pleasure of attending the Cybersecurity Conference and Roundtable in Bridgeport, CT. I’m always thrilled to be invited to industry events focusing on payments and found this event particularly fascinating as the attendees were primarily municipalities, towns and state government employees, all focusing on cybersecurity. When looking at risks related to processing payments, there is sometimes a habit of focusing on risk solely by the payment or type of payment – especially if you’re comfortable with pushing out credits and less comfortable with debits. This discussion at the event, however, looked at payments risk by vertical market to ...
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Recently, I had the honor of attending the fall 2018 Payments Innovation Alliance meeting held in Washington, DC. It was a great trip in our beautiful nation’s capital! The Payments Innovation Alliance provides a single membership program that brings together content and focus across all payment areas. Through active project teams, task forces and industry groups, members collaborate to influence existing and emerging payment trends and facilitate change and support innovation. The Alliance currently has four separate initiatives that represent its work in shaping the future of payments. The four project teams are the Cybersecurity Response Team, the ...
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Last week, NEACH staff attended a Payments Innovation Alliance meeting, featuring a wealth of informative sessions.  One in particular, presented by Walt Cox, Director of Business Development at Rapyd, and Bill Dunn, Director, Government Relations at American Payroll Association, was entitled Faster Payments and the Gig Economy.   The Gig Economy session peaked my interest, because I had never heard of the term.  I am aware of the word “gig,” as being slang for a live musical performance.  Wikipedia says it was coined in the 1920s by jazz musicians as a term short for the word engagement.    So what is a gig economy?  It is short-term work, primarily performed ...
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I often get questions about what cyber response has to do with, say, Operations, A/R, A/P, the Board or Compliance. The answer – a LOT! Consider your technology teams’ response to a cyber-attack. What do you think they will do if your business or institution comes under attack and confidential data is at risk. Yep – shut it down! Ok, admittedly it’s not as simple as “shut it down” but the fact is that their primary goal is different than yours – their goal is network integrity. Yours? Very different. Their response to the attack can have a negative affect against the rest of your organization from account holder support to payments, and increase your legal, ...
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NEACH is delighted to welcome guest blogger, Kevin Martin, CRCM, CAMS, Compliance Consultant, Compliance Anchor. This October, National Cybersecurity Awareness Month is commemorating its 15th year as an annual initiative to raise awareness about the importance of cyber security. To draw attention to this national initiative, Kevin has laid out 10 Practical Cyber Security Action Items you should consider. Don't forget to register for our upcoming Cyber Security Incident Response Interactive Workshop . *** Admit You Are A Target – Whether it is a data breach, ransomware, or some other event, know it can happen to you. Don’t ever say “It won’t happen ...
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NEACH is thrilled to welcome Compliance Month guest blogger, Nancy E. Lake, CAMS-Audit, CAMS-FCI, Director of Compliance Anchor. Building on the information released in the previous blog " Banking Marijuana: Do You Go There? ", Nancy lays out what steps you should take to address marijuana in your institution. If you would like more information, listen to our replay on-demand:  Banking the Marijuana Industry in New England .  *** Marijuana has been legalized in over 25 states, whether it be medicinal only or recreational aka adult (as proponents of it like to call it). Since marijuana is still illegal on the federal level many financial institutions ...
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NEACH is thrilled to welcome Compliance Month guest blogger, Nancy E. Lake, CAMS-Audit, CAMS-FCI, Director of Compliance Anchor. If you would like more information on Beneficial Ownership after reading this blog post, consider listening to the replay on-demand Beneficial Ownership, The Newest BSA Challenge that Nancy recorded for NEACH members earlier this year.  *** Beneficial Ownership has been on your mind as a BSA Officer for well over a year and you have created processes, worked with systems, trained your staff, and taken many other steps to comply with the rule’s requirements. Now we are a few months past implementation, but not everything is ...
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RSA recently released its   Q1 2018 fraud report , providing an inside look into the cybercrime and fraud trends observed in the first quarter this year across attack vector, digital channels and region.  One insight that stood out most prominently was the growth of fraud transactions originating from mobile apps –   an increase of over 600 percent in only three years   – from 5% in 2015 to 39% today.   While part of this increase is likely attributed to greater digitalization of banking and other consumer services, it is clear the mobile channel is still more vulnerable to fraud and requires better protection. Although the data suggests that mobile is ...
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NEACH's Faster Payments Executive Summary published monthly in a quick, easy-to-read charticle and blog post, is your go-to resource for staying in the know about new developments in the faster payments landscape. Each month's briefing highlights contributions from such industry leaders as NACHA, The Clearing House, The Federal Reserve and other influential stakeholders, giving you the information you need to assess how these changes impact your organization and its members.    IN THIS MONTH'S ISSUE… NACHA   According to NACHA’s latest numbers, Same Day ACH transactions realized substantial growth in Q1 2018. NACHA’s April 30, 2018, news ...
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What do you do with tax refund credits that you suspect might be fraudulent? The NACHA/IRS Refund Return Opt-In Program was developed to make it easier for financial institutions to return these credits using return reason code R17, after signing an agreement to opt-in to this program.  According to the Rules , Return Reason Code R17 is defined as File Record Edit Criteria.  This is used if the entry cannot be processed by the RDFI, the field(s) causing the processing error must be identified in the addenda record information field of the return.  This return reason code can be used to return the entry to the ODFI by the opening of business on the 2 nd ...
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You may remember reading about the “Can You Hear Me Now” phone scam earlier this year in which the fraudster would call a consumer and ask a question prompting a “yes” response. ( If not, listen to our Free Payments Fraud Awareness Town Hall ). That response would then be recorded and used as an authorization in conjunction with other personal information they may have already obtained in order to perpetrate fraud. Unfortunately, telephone scams seem to be here to stay, with the most recent scam targeting social security recipients.  An article was published in July warning citizens to be wary of phone calls from individuals purporting to be from the Social ...
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The industry has felt the rumblings for months—the significant shift that occurred with the launch of Same Day ACH, The Clearing House’ real-time payments system, and innovators reimagining ways in which to move payments faster. But those rumblings seem small compared to the seismic shift felt by the industry with the release of the Federal Reserve’s Faster Payments Task Force Final Report, Part Two: A Call to Action.   The Faster Payments Task Force Final Report, Part Two  The much-awaited report provides insights from proposals , considers issues requiring collaborative action, and recommends 10 detailed measures for achieving a faster payments system, ...
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The ACH Network and the ODFIs representing them, receive great benefit from Third-Party Senders as it relates to volumes.  There are unique risks associated with processing for Third-Party Senders, which draws the attention of regulators and the internal audit and risk teams at the ODFIs.  Over time, an apprehension has developed in regards to how Third-Party Senders are viewed in the payments industry.  The negative views stem from some publicized issues related to Third -Party Senders. The losses and risks associated with the bad activity have stained an entire industry.  A lack of understanding or the inability to apply knowledge can often be the reason ...
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Faster payments are accelerating and show no signs of slowing down. From preparations for SDA Phases 2 and 3 implementations to blockchain-chain solutions for faster cross-border payments, everything on the faster payments front is full steam ahead.  NACHA continues to prepare for the implementation of Phase 2 of Same Day ACH, recently releasing a series of checklists and guidance for ODFIs, RDFIs, Corporates, and Processors. With less than four months until Phase 2 implementation on September 15, 2017, you can expect to see an ongoing stream of resources from NACHA designed to help the industry prepare. And with the implementation of Phase 3 less than ...
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The faster payments movement advanced significantly in 2016 and is quickly gaining momentum. What were the biggest successes of 2016? Where might faster payments go in 2017? What should financial institutions do to prepare? Although it is impossible to predict with 100 percent accuracy what will happen in the future, one thing is clear: Faster payments is a movement unlike any other. The financial services industry can expect significant changes in the next five years. Read more about what Sean Rodriguez of the Federal Reserve, Jan Estep of NACHA, and Tim Mills of The Clearing House had to say about the future of faster. #FasterPayments #ACHNetwork
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