A division of Monett-based Jack Henry and Associates (JHA) has introduced a product to reduce banking risks and fraud.
Profitstars, a JHA division, has entered into a partnership with ACH (Automated Clearing House) Alert, a company offering wire risk management solutions. As a result of the relationship, ProfitStars has new products for financial institutions using ACH products.
"Automated clearing house (ACH) and wire fraud have become increasingly targeted at community banks and more widespread with the growing sophistication of attacks," said Barry Rich, chief financial officer for CapitalMark Bank and Trust, an existing ACH Alert client based in Tennessee. "ProfitStars' partnership with ACH Alert sets a new standard for anomaly detection in processing ACH and wire transactions."
Many outbound ACH credit and wire entries require that each transaction be validated once received by the financial institution, before funds can be released to the respective payment network.
Profitstars' new product, ACH C.O.P.S., provides out-of-band authentication for ACH credit and wire transfers by requiring customer approval of all suspect ACH and wire transactions prior to transmission. The timely check prevents money from going to an account that is not preapproved by the originator.
Profitstars' other new product, ACH A.L.E.R.T., offers ProfitStars clients actionable, real-time control over ACH debit approvals. Financial institutions can allow each customer to determine their own debit notification limits, how they want to be notified of potential problems as well as automate the return and re-credit process.
Corporate customers have only 24 hours to react to unauthorized debits. ACH A.L.E.R.T. provides protection above legacy debit filters and without the setup and maintenance costs.
According to Rich, CapitalMark Bank and Trust prevented more than $500,000 in fraud losses during the first quarter of 2012 alone using the Profitstars technology.
"ProfitStars clients will enhance their compliance by adding layers of security at different points in the transaction flow," said Debbie Peace, chief executive officer of ACH Alert. "The extra security will not only prevent fraud losses, but also significantly reduce overhead in how they monitor potential anomalies."
Last year, the FBI investigated more than 400 reported cases of corporate account takeover initiated by unauthorized ACH and wire transfers from U.S. business bank accounts, resulting in the attempted theft of more than $255 million.
The availability of ACH
C.O.P.S. and ACH A.L.E.R.T. enables financial institutions using ProfitStars' ACH Client and EPS
platform to deputize companies to review accounts that may have been compromised.
ProfitStars is hosting two complimentary webinars to showcase the next generation in ACH fraud detection and protection.
Jack Henry and Associates is a leading provider of technology solutions and payment processing services primarily for financial services organizations. Its technology solutions serve more than 11,900 customers.