Strengthening controls around ACH and wire payments.

ACH and wire transfers are great tools for running your business because of their ability to move money quickly and efficiently. They’re essential for paying vendors, managing payroll, and keeping operations running smoothly.

They’re also a frequent target for fraud and criminal activity.

Unlike checks or credit cards, ACH and wire payments can be difficult or impossible to reverse once sent and criminals know this. They use increasingly sophisticated tactics to trick businesses into sending money to the wrong place. Understanding how these schemes work and how to mitigate them can help better protect your organization.

Why ACH and wire fraud is increasing.

Fraudsters are targeting businesses of all sizes, from small companies to large corporations. According to the Federal Bureau of Investigation opens in a new window, business email compromise and wire fraud schemes account for billions of dollars in losses each year. Several factors are driving this increase.

• Payments speed has accelerated. Faster payments mean less time to detect and stop suspicious transactions.
• Fraudsters have become more convincing. They research companies, impersonate trusted contacts and use realistic email domains.
• Routine business processes create opportunity. Vendor payments, invoice approvals and account updates all involve financial information that criminals try to exploit.

Common ACH and wire fraud schemes.

Fraud can take many forms, but most schemes rely on deception rather than technical hacking. Criminals want someone inside your organization to authorize a legitimate payment to a fraudulent account. Here are some of the most common tactics.

• Business email compromise. A criminal gains access to or impersonates a legitimate email account, such as a vendor, executive or internal employee. They then send a message requesting a payment or ask to update banking information. The request often appears urgent and legitimate. It may include accurate names, logos and details taken from previous communications.
• Vendor impersonation. In this scheme, fraudsters pose as a vendor or supplier and request a change to payment instructions. They may claim their bank account has changed or that payments should be sent to a new account moving forward. If your team updates the information without verification, future payments go directly to the fraudster.
• Payroll diversion. Fraudsters target payroll or HR departments by posing as employees and request changes to direct deposit information. If successful, paychecks are redirected to accounts controlled by criminals.
• Executive impersonation. Sometimes called CEO fraud, this tactic involves impersonating a senior leader within your company. The fraudster sends an urgent message directing an employee to initiate a wire transfer, often citing a confidential acquisition or sensitive business matter. The urgency and authority of the request are designed to bypass normal controls.

Warning signs.

Fraudulent requests often share common characteristics. Even a single warning sign is reason to slow down and confirm the request. Recognizing these red flags can help your team pause and verify before acting.

• Requests to change payments instructions, especially if unexpected.
• Messages that create urgency or pressure immediate action.
• Email addresses with subtle misspellings or unusual domains.
• Requests that bypass normal approval processes.
• Payments instructions that differ from previous transactions.
• Requests that discourage verification or confidentiality.

The impact of ACH and wire fraud on your business.

ACH and wire fraud disrupts more than a single transaction. While the immediate loss of funds often gets the most attention, the broader impact affects your cash flow, your relationships and your day-to-day operations.

• Financial strain. Fraudulent payments create sudden and significant financial pressure. Even if some funds are recovered, your business may still face legal costs, higher insurance premiums, and the expense of strengthening internal controls. Over time, those added costs weigh on margins and long-term planning.
• Reputational impact. Your vendors and customers rely on you to handle payments safely, and when fraud occurs, it raises questions about controls and oversight. Rebuilding confidence takes time. Strong safeguards not only better protect funds, but they also protect your credibility and reinforce trust with the people who do business with you.
• Operational disruption. When fraud happens, attention shifts quickly. Payments may be paused, internal reviews launched, and financial partners contacted all while your team may need to retrace steps, gather documentation and adjust processes. All of this pulls focus from serving customers and running your business. Having defined procedures in place before an issue arises can help you respond quickly and keep operations moving with less disruption.

Steps your business can take to reduce risk.

Strong processes and employee awareness will always be your best defense. ACH and wire fraud mitigation doesn’t require complex technology, but it does require consistency and discipline. These best practices can significantly reduce your risk.

• Verify payment changes independently. Always confirm changes to payment instructions using a trusted method. This means contacting the vendor or employee using a known phone number, not the contact information provided in the request.
• Establish dual approval controls. Require at least two people to approve ACH and wire transactions, especially those above certain dollar thresholds. This reduces the risk of a single compromised employee initiating fraud.
• Train employees regularly. Your employees are your first line of defense. Provide ongoing education about fraud risks, common tactics and internal procedures. Make sure employees understand that slowing down to verify requests is expected and supported.
• Limit access to payments systems. Only authorized employees should have access to initiate or approve ACH and wire payments. Review access regularly and remove permissions when roles change.
• Monitor accounts closely. Review account activity frequently and reconcile transactions promptly. Early detection improves the chances of stopping or recovering fraudulent transfers.
• Maintaining protocols helps support safer transactions and reduce vulnerability. Businesses can strengthen their environment by using dedicated computers for online financial transactions when possible. It’s also important to keep operating systems, browsers and software updated with the latest patches. And while it sounds like common sense these days, always require strong, unique passwords and change them periodically.

What to do if fraud happens.

If you suspect fraudulent activity, act immediately. Time is critical. Take these steps right away.

• Contact your bank and request a recall or freeze of the transaction.
• Notify your internal leadership and finance teams.
• Report the incident to the Federal Trade Commission opens in a new window and the FBI’s Internet Crime Complaint Center opens in a new window.
• Preserve emails, payments records and related documentation.

A layered approach is your strongest defense.

ACH and wire fraud will continue to evolve, but businesses can take practical steps today to help mitigate exposure and continue using these payment tools with confidence. Independent verification, dual controls and ongoing employee awareness all contribute to a stronger overall approach. While no strategy can eliminate risk entirely, a culture that prioritizes consistency and caution remains your most effective defense.