Guardian Analytics Fighting Same Day ACH Fraud With New Tool

Guardian Analytics, the security company fighting banking fraud, announced on Monday (Aug. 22) it is launching a real-time ACH service that protects against fraud risk created by Same Day ACH.

In a press release, the company said that, by monitoring originated or received files, including batches and batch entries for suspicious behavior, the new tools — dubbed Analytics ACH-ODFI Real-time and ACH-RDFI Real-time — step in and automatically hold up high-risk batches for further review and expedite low-risk batches for further processing. The company said the tools enable financial institutions to streamline their operations to meet new submission deadlines brought on by Same Day ACH.

“Same Day ACH will greatly reduce the amount of time in which financial institutions can assess transaction risk,” said Julie Conroy, research director at Aite Group, in the press release. “We’ve seen that fraudsters are quick to capitalize on the exposure this creates in other countries that have moved to faster payment processes, and the U.S. will be no exception.”

According to Guardian Analytics, the solutions minimize disruptions to existing ACH operations by integrating with financial institutions’ payment infrastructure, enabling them to be up and running in a short amount of time.

With the Same Day ACH Phase 1 launch set for Sept. 23, businesses, banks and tech providers are all ramping up preparations to join the high-speed network. As the movement toward faster payments enters its eleventh hour, many players are adopting solutions and forging FinTech partnerships to support them through the transition. In recent headlines, this trend has been clear. BNY Mellon announced it will be using the clearXchange network for its treasury services clients, making it the first bank to do so. Chase also launched a partnership with clearXchange and will use the network to enable P2P payments via Chase QuickPay. Blockchain startup Ripple announced partnerships with seven banks, many of which are currently considering deployment strategies, according to Ripple CEO Chris Larsen.