When an employee pulls off fraudulent ACH payments, it shakes a business to its core. You trust someone with your financial engine, and suddenly that trust is weaponized. But here’s the part most business owners overlook: ACH fraud usually isn’t about a criminal mastermind. It’s about weak systems that make fraud easy.
If one person can create a vendor, approve the invoice, and send the ACH payment, that’s not a workflow. That’s a wide-open invitation.
Let’s walk through how businesses can shut this down long before money walks out the door.
Start with the real issue: Too much power in one place
If an employee controls the entire payment process from start to finish, the risk skyrockets. And no, loyalty isn’t a control. Even good people make bad decisions when the opportunity is too easy.
What to implement:
- One person enters new vendors
- A different person approves them
- A third person releases payments
Small team? Your bank and accounting software can create digital separation even when your staff can’t.
Lock down ACH permissions like they matter — because they do
Most banks offer controls businesses never turn on. Turn them on.
Use bank tools to:
- Limit who can initiate ACH transfers
- Require dual approval for every payment
- Set daily or per-transaction limits
- Get instant alerts for outgoing ACH activity
Think of this as putting a deadbolt on your digital front door.
Control vendor changes — this is where fraud loves to hide
Fraudsters often slip in a fake vendor or quietly change a real vendor’s bank info. It works because no one is watching closely.
Put these safeguards in place:
- Require documentation for any change in bank or contact info
- Call the vendor using a number already on file to confirm the change
- Review your vendor list monthly for duplicates or odd entries
Fake vendors don’t magically appear. They’re allowed in through an unlocked process.
Make bank reviews a daily habit
Fraud isn’t hard to spot when someone is actually looking.
You want:
- Daily reviews of bank activity
- Weekly reconciliations (or daily if your transaction volume is high)
- A second set of eyes on anything that looks off
Catching an issue within 24 hours keeps losses small and investigations simple.
Use audit trails to see who did what
Accounting software should clearly show:
- Who entered a bill
- Who approved it
- Who released the payment
If you can’t trace a transaction back to a human being, fraud can thrive in the shadows.
Rotate duties and require vacations
It sounds old-school, but it works.
People committing fraud hate stepping away from their computer because the scheme falls apart without constant babysitting. A mandatory week off can expose everything.
Your next step — start with the easiest win
If you’re realizing your controls are thin, don’t panic. You don’t need to overhaul everything overnight. But you do need to move.
Start by turning on dual approval for ACH payments. It’s simple, fast, and shuts down one of the biggest risk points immediately.
Fraud grows in silence. Controls make noise. Put the right systems in place, and you make it nearly impossible for someone inside your business to steal from you.
