Bank ACH Transfers – They Could Be Trouble

Are you familiar with the ACH (automated clearing house) rules that apply to your bank accounts? ACH is the primary electronic funds transfer (EFT) system used by banks for personal and business transfers. Your account may be open to ACH transfers and you do not even know you are at risk for loss.

There was a recent theft using the ACH system involving a Leavenworth hospital that I would encourage you to read about. The headlines were:

“Cybertheft Heists $1 Million from Leavenworth Hospital”

Cyber thieves apparently stole nearly $1 million from a bank account of the Cascade Medical Center transferring the funds by ACH transfer to nearly 100 bank accounts. Some of the funds have been retrieved but there will be a significant loss.

Read more on this theft as reported in the Wenatchee World.

You must generally notify your bank of incorrect ACH transfers on your business account within 24 hours. Miss this notification period and you may not be able to recover your funds.

We suggest you review this matter with your bank and review your accounts on a regular basis. You may wish to put an ACH stop on certain bank accounts.

The rules are different for personal bank accounts but you should also have an understanding of how these rules apply to your personal bank accounts. If you do not understand the rules you run the risk of being ripped-off with no way to recover your cash!

 

 

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