Risk technology solutions provider, Oscilar, has released what it describes as a state-of-the-art AI-powered ACH Fraud Detection product.
It says that the solution identifies and prevents fraudulent transactions with unparalleled speed and accuracy.
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Moreover, it says that its innovative solution is critical as the ACH Network experiences unprecedented growth. There were 8.2 billion payments handled in the first quarter of 2024 alone. This includes a 47% increase in same-day ACH volume. ACH facilitates critical transactions such as payroll, bill payments, internet purchases, person-to-person transfers, and business-to-business settlements.
ACH credit fraud increased by 6% between 2021 and 2023. Oscilar notes that more than half of organisations with revenue less than $1bn were unable to recover funds lost from fraud attacks.
ACH fraud: one of the biggest challenges for financial institutions
“We founded Oscilar to make the internet safer and protect online transactions,” said Neha Narkhede, co-founder and CEO of Oscilar. “Cracking down on ACH fraud is one of the biggest challenges for our fintech and financial institution customers. ACH fraud costs companies and consumers billions each year. Our new ACH Fraud Detection product allows customers to prevent fraud in real-time. And it also helps them navigate the regulatory landscape with ease and confidence.”
Oscilar contend that traditional fraud detection solutions have struggled to keep pace with the ever-evolving threat landscape. They rely on outdated rules engines or static Machine Learning models and manual processes that are slow, inefficient, and prone to errors. In turn, this exposes financial institutions and businesses to significant financial losses and reputational damage.
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By GlobalDataAs the ACH system has modernised, attackers have sharpened their tools and techniques. This makes it increasingly challenging to detect and prevent fraud. Oscilar’s ACH Fraud Detection solution addresses key types of fraud, including first-party fraud, account takeover, stolen account details, scams, business email compromise, money mules and ACH check kiting.
