ACH Alert’s C.O.P.S Addresses Fraud Prevention Needs Described by Federal Financial Institutions Examination Council (FFIEC)

Chattanooga, TN - 4 August 2011

ACH Alert’s C.O.P.S Provides Layered Security for Advanced Fraud Mitigation.

The Federal Financial Institution Examination Council (FFIEC) website recently announced “automated monitoring and detection technologies could prevent many ACH and wire frauds. FFIEC went on to say financial institutions should not rely solely on any single control for authorizing high risk transactions but institute a system of layered security.”

Chattanooga-based ACH Alert believes it’s recently launched ACH C.O.P.S. (Credit Origination Positive-Pay Service) has a solution to the exposure financial institutions experience with single control authorization mechanisms.

“C.O.P.S., our new patent-pending technology provides a multi-layered system of protection using different controls at different points in a transaction process,” said Debbie Peace, CEO of ACH Alert. “C.O.P.S. empowers Originator’s to control what funds are allowed to leave their account and where they go by alerting them of transactions with unknown payment destinations and allowing them to determine what is or is not a fraudulent transaction.”

Credit Origination Positive-Pay Service (C.O.P.S.) layered system of security prevents ACH and wire fraud by:

• Systematically verifying every out-going transaction against a registered recipient/white list.

• Enabling the financial institution to administer and control the recipient list through an automated, onetime file load approved by the Originator using a sophisticated “out-of-band verification" and authentication method.

• Systematically monitoring live ACH/Wire transactions as they arrive. If routing/account number combinations are detected that are not present on the pre-approved recipients’ list, they are detained and an out-of-band alert is sent to the Originator providing instructions on how to respond to the suspicious activity so the transaction can be further authenticated or dropped.

• Addressing “Control of Administrative Functions” by restricting access to alert information to only authorized representatives of the financial institution.

• Providing dual customer authorization through different access devices.

“C.O.P.S. goes beyond monitoring behavior and focuses on systematically validating transaction content after transactions leave the online channel and before they are released to the payment networks,” said Kim Bruck, vice president of Business Development for ACH Alert. “I am aware of no other fraud deterrent technology that does this.”

C.O.P.S. is the second fraud mitigation technology system developed by ACH Alert. ACH Alert was recently granted a patent for its ACH A.L.E.R.T. system that provides real-time protection for commercial and individual clients, by simplifying the identification of trusted trading partners for the client independent of bank involvement and making the dispute resolution process a “seamless” proposition for the financial institution.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development