How to Safeguard from Fraud with ACH

Protect your business from ACH fraud with FNBT. Learn how ACH Blocks & Filters, Positive Pay, and multi-factor authentication help safeguard accounts across Northern Illinois and Southern Wisconsin.

For many businesses and individuals in Northern Illinois and Southern Wisconsin, ACH payments are part of daily life. From running payroll and paying vendors to covering monthly bills, the Automated Clearing House (ACH) network offers speed, efficiency, and lower costs than paper checks or wires. That convenience has made ACH the backbone of modern banking. Unfortunately, it has also attracted criminals who see opportunities in every transaction.
Fraudsters use stolen account credentials, phishing emails, and fake vendor instructions to push through unauthorized debits or credits. The effects are immediate and often costly. In addition to lost funds, businesses may face delayed payroll, disrupted operations, and damaged reputations.
The good news is that customers are not powerless. By understanding the risks and implementing proven safeguards, you can strengthen your defenses. Effective ACH fraud prevention combines tools offered by FNBT with smart internal practices. The result is confidence that you can protect your bank account from fraud and continue to enjoy secure ACH payments. For more everyday strategies and financial security tips, you can explore FNBT’s Fraud Education blogs.

Understanding ACH Fraud

According to data reported by NACHA, billions of payments are processed each year via ACH. Businesses use it to pay employees and vendors, while individuals rely on it for automatic bill pay and direct deposit. Because transactions move directly between accounts, ACH is highly efficient. Unfortunately, it can also be vulnerable when information falls into the wrong hands.
The most common forms of ACH fraud include:

• Unauthorized debits or credits: Criminals use stolen account and routing numbers to pull money from an account or push fraudulent credits. These transactions often go unnoticed until a reconciliation report or bank alert reveals the problem.
   
• Business Email Compromise (BEC): Fraudsters pose as trusted co-workers or vendors and send convincing instructions that trick employees into approving fraudulent transfers. Because the messages look legitimate, even seasoned staff can be caught off guard. ACH file information received by email should first be verified with a trusted contact before originating an ACH file.  If a business email is compromised, the contact information included in the email is fraudulent and should not be used. 
   
• Account takeover fraud: Hackers gain access to login credentials and initiate transactions without permission. Once inside, they may change payment instructions, add new payees, or disable alerts, making detection more difficult. Preventing account takeovers is central to strong business ACH security and helps protect your bank account from fraud before losses occur.
   

Financial losses can be significant, but the harm does not end there. A compromised account often disrupts payroll or supplier payments, which in turn damages trust with employees and partners. For a small business, even one fraudulent transfer can create lasting consequences. The good news is that there are proven actions you can take to reduce these risks and keep your accounts safe.

Bank-Level Safeguards

The most powerful step you can take to strengthen business ACH security is to use the fraud prevention services available through FNBT. These tools are designed to stop ACH scams before they can do harm.

ACH Blocks & Filters

Using FNBT’s Fraud Management Dashboard, you can create an “Approved ACH Company” list. ACH transactions from unauthorized sources are flagged and automatically returned unless you override them by 11 a.m. CT. You also have the option to set transaction limits and receive SMS or email notifications when exceptions occur.

Check Positive Pay

Similar to ACH Blocks & Filters, Check Positive Pay matches checks against an issued list. Any mismatched checks are returned by default, and you have until 11 a.m. CT to decide whether to pay or reject them. Custom notifications are available via SMS or email.

Alerts and Exception Decisions

FNBT makes it easy to stay in control. You can receive email or SMS alerts when an exception transaction occurs and then review and accept or reject the item by the cutoff time.

Digital Security Tokens (Multi-Factor Authentication)

As part of FNBT’s enhanced business security, digital tokens (Symantec VIP) are required when initiating or approving ACH or wire transactions. This provides an extra layer of identity verification beyond your username and password.
To learn more about these services, visit our Cash Management page.

Internal Business and Personal Controls

Bank safeguards are most effective when paired with strong internal practices. These steps can be applied by businesses of any size as well as individuals who want more secure ACH payments.

Dual Control

Dual control requires two separate people to authorize a transaction. One employee initiates the transfer, and another approves it before funds are released. This process reduces the chance of both external fraud and insider threats.

Multi-Factor Authentication and Role-Based Access

Adding an extra layer of login security through multi-factor authentication (MFA) ensures that even if a password is compromised, criminals cannot access the account. Role-based access further enhances security by limiting what actions a user can perform. For example, one employee may be allowed to view activity but not release payments.

Employee and Vendor Data Management

Fraud often succeeds when businesses overlook small details. Regularly update vendor records, employee payment information, and ACH authorization forms. Removing old or inactive vendors reduces the opportunity for criminals to exploit outdated data.

Staff and Customer Training

Phishing emails and fake invoices remain common entry points for fraud. Training employees to pause and verify payment instructions is critical. Individuals should also be cautious with unexpected requests to update account information or change payment methods. Building a culture of vigilance can make all the difference.
 

Ongoing Oversight and Auditing

Fraud prevention is not a one-time setup; it requires ongoing maintenance. Continuous oversight ensures that safeguards remain effective as your business grows and payment habits change.
Conduct regular internal audits of ACH activity to confirm that transactions match authorized vendors and amounts. Review user roles and permissions at least quarterly to make sure employees still require the access they have. A staff member who changes roles may no longer need the ability to release payments.
Finally, partner with FNBT to understand and adopt additional oversight. FNBT provides support for reporting, reconciliation, and monitoring that can catch suspicious activity early. Learn more about FNBT's Fraud Management Tools or contact our Business Connections Support Team for additional information.

Building a Multi-Layered Defense

No single tool can stop all types of fraud. The best defense is a layered one. That means using bank protections such as Positive Pay and ACH Blocks & Filters while also maintaining internal processes like dual control and multi-factor authentication, as well as regular training and audits, to close any remaining gaps.
This approach provides peace of mind. Even if one layer is tested, the others stand ready. Prevention also costs far less than recovering from fraud. By taking proactive steps now, you protect not only your money but also your reputation and relationships.
At FNBT, we are proud to help customers across Northern Illinois and Southern Wisconsin keep their accounts safe.

Safeguard Your Payments with Confidence

Contact us today to set up fraud prevention tools, such as ACH filters or Positive Pay. You can also stop by one of our convenient locations in Southern Wisconsin and Northern Illinois.
Our experienced team will guide you through your options, answer your questions, and help you select the tools that best meet your needs. You can also reach out to your Relationship Manager, Cash Management Officer, or connect with our Business Connection Support Team at 1-888-255-2114 or BusinessConnection@bankatfirstnational.com.
With the proper safeguards in place, you can protect your bank account from fraud, reduce risk, and keep your business operating with confidence.