Small FIs & the New NACHA Fraud Monitoring Rules (Phase 1)

Banking on Fraudology is part of the Fraudology Podcast Network.

The latest episode of Banking on Fraudology tackles a critical issue facing financial institutions: new ACH fraud monitoring requirements. Host Hailey Windham expertly guides listeners through NACHA's upcoming rule changes, offering a comprehensive breakdown tailored for small banks and credit unions. Windham delves into the nuances of the two-phase implementation, explaining how institutions can prepare for the March 2026 deadline without breaking the bank. She clarifies key concepts like "false pretenses" and the shift away from "commercially reasonable detection systems" to risk-based processes. The episode provides a wealth of practical advice, from conducting risk assessments and setting transaction baselines to developing effective response procedures. Windham also shares invaluable insights on vendor selection, warning listeners about common sales pitches to be wary of and offering smart questions to ask potential partners. Throughout the episode, she emphasizes the importance of tailoring monitoring approaches to an institution's specific role and risk profile. Listeners will come away with a clear action plan for compliance, including tips on policy writing and annual review processes. This episode is a must-listen for any fraud fighter looking to stay ahead of regulatory changes and strengthen their ACH fraud defenses. Tune in now to arm yourself with the knowledge and strategies you need to protect your institution and customers in the evolving landscape of ACH fraud.

https://www.nacha.org/rules/risk-management-topics-fraud-monitoring-phase-1

About Hailey Windham:

As a 2023 CU Rockstar Recipient, Hailey Windham, CFCS (Certified Financial Crimes Specialist) demonstrated unbounding passion for educating her community, organization and credit union membership on scams in the market and best practices to avoid them. She has implemented several programs within her previous organizations that aim at holistically learning about how to prevent and detect fraud targeted at membership and employees.

Windham’s initiatives to build strong relationships and partnerships throughout the credit union community and industry experts have led to countless success stories. Her applied knowledge of payments system programs combined with her experience in fraud investigations offers practical concepts that are transferable, no matter the organization’s size.

Connect with Hailey on LinkedIn: https://www.linkedin.com/in/hailey-windham/

• https://www.fraudfightclub.com/
• https://www.about-fraud.com/