Municipality and School District ACH Fraud Alert

October 6, 2011
The Indiana Bankers Association has learned of an issue regarding ACH fraudulent activity that we want to make you aware of. According to the Indiana State Board of Accounts, there have been a series of fraudulent ACH transactions against various Municipality and School accounts throughout the state over the past few months.
In talking with the Board of Accounts, it seems there is a foreign cartel that is preying on these accounts. They have used various methods of transaction initiation including (1) electronic requests via the proper channels of the bank; (2) recreating checks of the accountholder; (3) and fax requests containing appropriate but forged "authorized" signatures. The amount of each transaction has varied, but some have been nearly six figures, either individually or aggregately.
Ensure you are following best practices with your online banking log on credentials and have in place processes to protect all your information from physical fraud as well.