New NACHA Rule Amendments Take Aim at Mitigating Fraud

To enhance fraud prevention and recovery efforts, NACHA has implemented rule amendments as part of its comprehensive Risk Management package. These changes took effect on October 1, 2024.

Here are some of the specific improvements made in the revised version:

• RDFIs are permitted to (but not required) to use R17 to return an entry that it believes is fraudulent.
• A new term is being referenced, false pretenses, which is defined as "the inducement of a payment by a Person misrepresenting (a) that Person's identity, (b) that Person's association with or authority to act on behalf of another Person, or (c) the ownership of an account to be credited". The amended rule provides RDFIs with an additional exemption from the funds availability requirements to include credit entries that the RDFI suspects are originated under false pretenses.
• The amended rule will allow a Written Statement of Unauthorized Debit (WSUD) to be signed and dated by the Receiver on or after the date on which the Entry is presented to the Receiver, even if the debit has not yet been posted to the account.
• When returning a debit as unauthorized in the extended return timeframe, the RDFI must do so by the opening of the sixth Banking Day following the completion of its review of the consumer's signed WSUD.

Be on the lookout for amendments to the CU PolicyPro model policies 2611: ACH Operations and Management, and 2612: ACH Audit.