ACH Fraud Scanning is available to help credit unions comply with Nacha fraud monitoring rules for both ODFI and RDFI perspectives. A highly configurable offering, ACH Fraud Scanning gives credit unions the control to set various aspects of monitoring to best meet their needs.
The ACH Fraud Scanning solution runs checks against a database of more than 1,000 financial institutions and over 50 core processors. It delivers real time responses on key account attributes, including:
Account existence and standing
Return, NSF, stop payment, or high-risk activity
Account owner authorized on the account
Credit unions will work with the corporate to enable the service and then must enable Users with the ACH Settings Manager role in order to set configurations for the service.
Billing for scans is reflected on monthly billing statements.
Fraud Settings Overview
To configure ACH Fraud Scanning setting, Users will navigate to the Member Details module, click the Services tab, select the ACH Solutions hyperlink, and finally click the Fraud Settings tab. Users with the ACH Settings Manager role must configure the scan settings as indicated in each section below. Once one or more section configurations have been completed, click the Save Changes button to save the configuration settings.
Scan Settings
ACH File Scan Execution
This option determines how scans will be run on ACH files. Select the appropriate option from the dropdown:
Automatic: scans will be run automatically on ACH files based on file and transaction filters for when they arrive in Beastro (outgoing/incoming)
Manual: scans will be performed on individual files manually at the credit union’s discretion
Disabled: scans will be disabled; use this to temporarily disable the scanning functions within Beastro
To completely disable the scanning service, contact the corporate credit union
Scan Type
This area identifies what types of scans should be completed on ACH files. Check the box of one or both options:
Account Status: identifies if the account exists and is in good standing; if the account is closed; if there is return, NSF, stop payment, or other high-risk activity
Account Owners: identifies if the individual originating the transaction is authorized to transact on the account
Additionally, scan information for both Account Status and Account Owners may be cached for a set number of days to avoid repetitive scan charges for the same scanned data. Should the credit union determine that caching data is preferable, note the number of days in the Expire Account Status and/or Account Owner Scan After Days box(es).
Settings
The Scan ACH Files generated from ACH Template? option allows the credit union to determine if ACH files originated from ACH templates should be included in ACH Fraud Scanning activities. Click the toggle to turn the option on or off.
Should the credit union prefer to run ACH Fraud Scans prior to origination, it may be useful to select the Split suspect outgoing transactions into a new file? option. This will split any transactions with a Decline recommendation that require review into a separate file, allowing cleared transactions to process as normal without holding up the entire file.
Transaction Scan Filters
Identify which files should be scanned. Options selected may be either Outgoing or Incoming, or check both boxes to scan files of all directions.
Standard Entry Classes
Your credit union will determine which Standard Entry Class Codes must be scanned. Check the Code box at the top of the list to select all SEC codes. Select individual check boxes to select the individual SEC codes your credit union has determined would be the most beneficial to scan.
Transaction Codes
Your credit union will identify which Transaction Codes must be scanned. Check the Code box at the to of the list to select all Transaction codes. Select individual check boxes to select individual Transaction codes that your credit union wants to scan.
Dollar Amounts
Credit unions have the option to create multiple dollar amount thresholds to include in scanning by clicking the Create New button. For each new Dollar Amount that is added, the User will select from the following options from the Expression dropdown box:
Exactly
Less Than
Greater Than
Between
Once the expression has been selected, include the dollar amount(s) in the box(es) displayed.
Should a credit union determine that a particular Dollar Amount is not needed in the future, simply clicking the Delete hyperlink will remove it from the scanning configuration.
Fraud Watch List
Credit unions may maintain their own list of accounts where transactions should not be allowed by using the Fraud Watch List section.
Click Create New. Required fields include Routing Number and Receiver Account Number. Receiver Name is an optional field. The system will record the last time and User who updates the Fraud Watch List Record.
To remove a Fraud Watch List entry, click the Delete hyperlink.
Once all configurations have been set, click Save Changes. To review past configuration changes, click the Last updated on…. hyperlink in the upper right corner of the screen. A Change History Information popup containing all record change information will be displayed.
Performing Fraud Scans
Once the ACH Settings Manager has completed the ACH Fraud Scanning configuration, Users with the ACH Solutions Authority role will have the ability to run ACH Fraud Scans and/or review ACH Fraud Scan results.
Manual Fraud Scans
Credit unions that have elected to perform manual ACH Fraud Scanning will complete one of the following methods:
Manual Scans from the ACH Files Table
Navigate to the Money Movement module
Select the file direction tab - Outgoing Files or Incoming Files
Identify the file to scan in the table
In the OFAC Status/Account Scan column, click A: Scan
The User will see a Pending status as the scan completes
Optionally, the User may select to Refresh the status while the scan takes place
The scan result will display once the scan has completed:
Complete No Warning - there are no suspected transactions in the file
Complete With Warning - there are suspected transactions in the file
Complete No Scans - there were no transactions that met the criteria to warrant a scan
Incomplete - identifies if a technical issue has prevented the scan from completing; the system allows for rescanning of the remaining items to attempt to complete the scan
Pending - shown when a scan is in progress
Canceled - file scanning has been canceled
Cancel Pending - initially displayed when a User chooses to cancel a scan; status will update to Canceled when the scan has been canceled
Reviewing scan results will be covered in a later section.
Manual Scans from an ACH File
Navigate to the Money Movement module
Select the file direction tab - Outgoing Files or Incoming Files
Identify the file to scan in the table
Click the File ID of the file to scan
In the box at the very top of the screen, click Account Report to initiate the scan
The User will see a Pending status as the scan completes
Optionally, the User may select to Refresh the status while the scan takes place
The scan result will display once the scan has completed:
Complete No Warning - there are no suspected transactions in the file
Complete With Warning - there are suspected transactions in the file
Complete No Scans - there were no transactions that met the criteria to warrant a scan
Incomplete - identifies if a technical issue has prevented the scan from completing; the system allows for rescanning of the remaining items to attempt to complete the scan
Pending - shown when a scan is in progress
Canceled - file scanning has been canceled
Cancel Pending - initially displayed when a User chooses to cancel a scan; status will update to Canceled when the scan has been canceled
Reviewing scan results will be covered in a later section.
Automatic Fraud Scans
Credit unions that have elected automatic ACH Fraud Scanning will only need to review ACH Fraud Scanning results. This may be completed by file, or a report may be reviewed. The report option will be covered in a later section.
Reviewing Fraud Scan Results
Fraud scans will show an overall Account Scan result for the file, and individual Recommended Actions for transactions contained within the file.
Account Scan Results may be reflected as follows:
Complete No Warning - the file has completed scanning and there are no Decline or Warning recommended actions in the file
Complete With Warning - the file has completed scanning and there are Decline or Warning recommended actions in the file
Complete No Scans - there were no transactions that met the criteria to warrant a scan
Incomplete - identifies if a technical issue has prevented the scan from completing; the system allows for rescanning of the remaining items to attempt to complete the scan
Pending - shown when a scan is in progress
Canceled - file scanning has been canceled
Cancel Pending - initially displayed when a User chooses to cancel a scan; status will update to Canceled when the scan has been canceled
Recommended Action is based upon information available by the data consortium, and results may be reflected as follows:
Accept - identifies no cautions noted on the account information
Decline - identifies the account information as suspect and should be reviewed by the credit union
Warning - may indicate a situation to review but is not serious enough to decline
No Information - identifies the scanning has no information about the account, so no recommendation is presented
Waiting Scan - the account is queued for the Beastro processor to perform the scan
NA - Error - a scan was attempted and an error has occurred running this scan
To review results for individual transactions:
From a completed manual or automatic scan, click the hyperlink displaying Complete with Warning results.
Users may sort and/or filter the column to see a specific Recommended Action
Click the Receiver Name hyperlink of the record to review
The ACH Account Scan Detail screen displays ACH Fraud Scan results. Information included is received from the database, and may include data such as:
Fraud watch list (refers to the credit union-created fraud watch list)
Count of all returned transaction
Last return reason
Probability of return
And more…
Once data has been reviewed, the User may determine the appropriate action to take on any suspect transactions.
ACH Account Scan Listing Report
From within the Money Movement module, Users may access reporting of ACH Fraud Scan results by clicking the ACH dropdown, selecting ACH Reports, and clicking the ACH Account Scan Listing Report hyperlink.
This report displays scan results from all transactions that have been scanned across the date range the User has specified. The User may sort and filter across the column headers to narrow results down to a desired list of results. This list may be exported to Excel by clicking the Export to XLSX button.
To view individual transaction results, click the Receiver Name hyperlink to review report details.
Once data has been reviewed, the User may determine the appropriate action to take on any suspect transactions.