These functionalities use Generative AI (GenAI) and machine learning (ML) to help financial institutions like banks, credit unions, payments companies, and fintechs in proactively identifying and preventing high-risk transactions. As per the National Automated Clearing House (ACH) (Nacha), there was a 47% year-over-year growth in same-day ACH volume between the first quarters of 2023 and 2024. This increase is attributed to the rising popularity of real-time payments among both consumers and businesses.
Officials from Unit21, accentuated the ongoing challenge of ACH fraud in the US financial ecosystem is due to the increasing popularity of real-time payments among consumers. To address this threat, their new ACH fraud solution leverages GenAI and machine learning to provide fraud practitioners with real-time risk monitoring and investigation capabilities. This helps them to mitigate risks and strengthen customer trust and loyalty.
The ACH fraud solution from Unit21 prevents high-risk ACH transactions like first-party fraud, account takeovers, and scams by anticipating fraudulent behaviour through these four features:
ACH Risk Scoring: Unit21 employs a machine learning model for financial institutions and fintech companies to detect R10s. By using behavioural analysis, network data, entity information, transaction history, and IP enrichment tailored to each business, it effectively reduces risk and significantly decreases return rates.
‘Out of the Box’ Rules: Unit21 offers pre-established rules to combat ACH fraud, minimising false positives and saving time. It also allows for customisation by filtering and adding conditions based on a business's data, with the flexibility to adjust on the go without the need for coding.
Counterparty Risk: through Unit21's Fraud Consortium, financial institutions and fintech companies can proactively spot account/routing numbers and fuzzy name matches previously identified as fraudulent within the Unit21 network, thwarting fraudsters' attempts.
GenAI Agent for ACH Fraud Investigations: Unit21's GenAI Agent efficiently identifies and investigates suspicious activities, streamlining case management tasks such as online presence assessment, adverse media searches, and document analysis. By using Unit21's AI Agent, investigation time can be slashed by over 60%.
Unit21's ACH fraud prevention solutions detect and identify suspicious activity, alerting companies to illicit behaviour before becoming an issue.
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