ACH C.O.P.S. provides systematic fraud detection to outbound ACH credit and wire entries by requiring transaction-level validation after transactions are received by the financial institution and prior to them being released to the respective payment network. In line with FFIEC's supplemental guidance to its Authentication in an Internet Banking Environment, ACH C.O.P.S. provides out-of-band authentication for ACH credit and wire transfers by requiring customer approval of all suspect ACH and wire transactions prior to transmission, preventing money from going to an account that is not preapproved by the originator.
To mitigate losses from the posting of unauthorized ACH debits, ACH A.L.E.R.T. offers ProfitStars clients actionable, real-time control over ACH debit approvals. Financial institutions can allow each customer to determine their own debit notification parameters, notification method and contact information as well as automate the return and re-credit process. Since corporate customers have only 24 hours to react to unauthorized debits, ACH A.L.E.R.T. provides protection above legacy debit filters and without the setup and maintenance costs.
CapitalMark Bank & Trust is an existing ACH Alert client that prevented more than $500,000 in fraud losses during the first quarter of 2012 alone. The Tennessee-based de novo with $700 million in assets focuses on remotely serving area SMBs. Barry Rich, the institution's chief financial officer, said, "ACH and wire fraud have become increasingly targeted at community banks and more widespread with the growing sophistication of attacks. ProfitStars' partnership with ACH Alert sets a new standard for anomaly detection in processing ACH and wire transactions."
Debbie Peace, AAP, CEO of ACH Alert, added, "ProfitStars clients will enhance their compliance by adding layers of security at different points in the transaction flow to not only prevent fraud losses, but also significantly reduce overhead in how they monitor potential anomalies."
The FBI reported last September it was investigating more than 400 reported cases of corporate account takeover initiated by unauthorized ACH and wire transfers from U.S. business bank accounts, resulting in the attempted theft of more than $255 million. The availability of ACH C.O.P.S. and ACH A.L.E.R.T. enables financial institutions using ProfitStars' ACH Client and EPS platform to deputize companies and only resolve exceptions rather than using algorithms to speculate on potentially suspect activity and over great spans of data.
According to Bill Phillips, EPS group president at ProfitStars, "The reputational risk associated with corporate account takeover and unauthorized debit activity is significant for financial institutions. Adding the ACH C.O.P.S. and ACH A.L.E.R.T. risk management solutions to our proven offerings provides more sophisticated safeguarding against such threats for our clients and will be more of a differentiator for them in obtaining additional business."
ProfitStars is hosting two complimentary webinars to showcase the next generation in ACH fraud detection and protection. Registration is open for Tuesday, April 17 or Thursday, April 19 at 11 a.m. EDT.
As a diverse, global division of Jack Henry & Associates, ProfitStars combines JHA's solid technology background with the latest breakthroughs in four performance-boosting solution groups - Financial Performance, Imaging & Payments Processing, Information Security & Risk Management, and Retail Delivery. Explore the power of ProfitStars-enhanced performance at www.profitstars.com.
About Jack Henry & Associates, Inc.
Jack Henry & Associates, Inc. (NASDAQ: JKHY) is a leading provider of technology solutions and payment processing services primarily for financial services organizations. Its technology solutions serve more than 11,900 customers nationwide, and are marketed and supported through four primary brands. Jack Henry Banking(TM) supports banks ranging from de novo to mid-tier institutions with information processing solutions. Symitar(TM) is the leading provider of information processing solutions for credit unions of all sizes. ProfitStars provides highly specialized products and services that enable financial institutions of every asset size and charter, and diverse corporate entities to mitigate and control risks, optimize revenue and growth opportunities, and contain costs. iPay Technologies(TM) operates as a leading electronic bill pay provider supporting banks and credit unions with turnkey, highly configurable retail and small business electronic payment platforms. Additional information is available at www.jackhenry.com.