Financial institution employees and accountholders should be extra cautious of the increase in transaction risk especially when someone signs into online banking and creates a P2P bill pay type of transaction. Adopt fraud monitoring tools to help identify account takeovers where the fraudster has your consumers banking credentials due to phishing, malware or keylogging.
What is P2P Bill Pay Fraud?
This scam uses an ACH credit to do a Person-to-Person (also known as P2P) transfer using bill pay versus online banking. Fraudsters generate ACH credit from your accountholder’s account to another person’s account at another financial institution using bill pay. This fraud occurs when missing or weak authentication layers are setup on P2P bill payment authorizations (namely those involving ACH credits). To prevent this crime, financial institutions should make sure deposits of any kind, especially those in the online or mobile environment, are properly authenticated prior to the releasing the funds.
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