As of September last year, credit-based ACH payments are now being settled within the same day. This includes direct deposit, payroll, person-to-person and vendor payments. During the course of 2017 ACH debit-based payments will follow suit. Same-day credit-based ACH payments create significant fraud exposure and criminals are leveraging this, this will increase exponentially when same-day debit-based payments are brought in. Instead of having two to five days to detect fraudulent transactions institutions will be faced with as little as two hours to analyse suspicious activity.

Financial institutions need to change their processes and risk strategy to tackle this new fraud risk and to prepare for future increased fraud risk. AI has created ACH specific neural models that combat this growing problem within financial institutions.

AI’s Smartsuite of machine-learning technology gives banks the opportunity to deploy their own rules into any fraud platform including AI’s rules engine Risknet, mitigating ACH fraud regardless of how it is perpetrated, this could include account takeover, ‘man in the middle’ fraud and/or social engineering.

Smartscore, one of six products within their Smartsuite, creates neural models using artificial intelligence and automated machine-learning techniques, to recognise patterns and trends in fraud. These provide transaction risk scores to be used in conjunction with user-defined rules and parameter-mapping.

“We are tirelessly working on ways to facilitate and protect both faster payments and alternative payments by providing our clients with self-service SaaS or software solutions that automate manual processes and allow the fraud teams to focus on more important business problems.” Mark Goldspink, CEO, ai.

With its unique multi model capabilities, Smartscore users are able to create Neural Models specific to a particular fraud type, customer segment or payment method, which in this case is ACH.

By constantly refreshing the data available, Smartscore provides an up to date and accurate risk score based on current trends, ensuring that Risknet or any third party fraud platform users are not reviewing unnecessary alerts.

AI’s advanced data visualisation tools bring the data to life allowing for a granular level of interrogation, highlighting potential risks hidden in large amounts of data. Their network visualisation technology identifies commonalities and consolidate ongoing investigations.

According to the company, utilising AI’s suite of self service, automated, and highly scalable products in a SaaS environment, provides a proven multi layered preventative solution to ACH fraud for the business.