LexAlign 2024 Topics
The messages below cover a variety of topics related to the LexAlign solution. They are a great source for learning about LexAlign.
Topics for ACH Associations
The messages below cover a variety of topics on how LexAlign helps banks.
Introduction to LexAlign
Hi,
Would you like to prevent losses from BEC, Account Takeover, and other Credit-Push Fraud?
Bankers routinely tell us that they are concerned about meeting regulator expectations for managing the risks associated with their commercial customers doing high-risk, highly regulated activities like remote check deposits, ACH and wire originations. Many have 2024 initiatives to better manage the risk of such remote operations and prevent Credit-Push Fraud that targets their commercial customers. The problem is the time it takes.
Thankfully, there is now a revolutionary solution that does risk management on remote operations, freeing your staff to focus on growth. It’s called LexAlign.
LexAlign automates the onsite security-and-compliance audit function for high-risk, highly regulated activities like remote check deposits, ACH and wire originations performed by your commercial customers. LexAlign gives them the precise and actionable information they need and automatically creates records you need to demonstrate risk management across your customer base.
With LexAlign you can grow your treasury customer list in a demonstrably risk managed way while reducing staff hours spent on compliance. If you’re growing, be careful, and be careful with LexAlign. Do more with less with LexAlign.
Because LexAlign is unlike any other solution available today, the best way to see how it works is to see a demo.
Helping ACH Associations be more effective
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Hi, We’ve been getting questions about the LexAlign opportunity we presented last week (click the button above to see it again). Here’s more detail on how it affects the crucial work you do. Even with the latest fraud detection technology, losses from Credit-Push Fraud are growing exponentially. Clearly, something is missing. Since banks’ commercial customers are the point of entry, we need to recruit and empower them to be the first layer in preventing fraud. LexAlign addresses the precise vulnerabilities that criminal enterprises are exploiting: gaps in customer operations, security, training, and sophistication. Banks using LexAlign’s automated solution give you the opportunity to be much more effective in the services you provide for their ACH audits – allowing you to extend those services to the banks’ commercial customers. Banks will also need your help to build processes and routines around the data generated by the LexAlign solution. We invite you to learn how the LexAlign solution can help your association members, as well as the services you provide to your members. |
How to prevent Credit-Push Fraud
LexAlign empowers banks’ commercial customers to prevent Credit-Push Fraud.
Credit-Push Fraud results when a sophisticated criminal enterprise takes over the customer’s account or deceives them via business email compromise or other social engineering into sending funds to a fraudulent account.
Nacha has called this the now dominant form of fraud across payment channels and is pushing urgently for a New Risk Management Framework for the Era of Credit-Push Fraud. It says:
“Effective end-user education will require new and innovative ways to reach the end users of the payment system. Working together within and beyond the ACH community, participants in the payment system all have roles to play in combatting fraud. “
Like nothing before it, LexAlign uniquely responds to this call by effectively making the customer part of the risk management framework.
LexAlign does this by recruiting the customer to be the front layer in the layered security approach expected by regulators by:
- Sensitizing the customer to their vulnerabilities & responsibilities
- Empowering them with targeted & actionable guidance and
- Providing them the foundation for a risk management program.
LexAlign also makes it possible to do Remote Operations Risk Management that is proactive, targeted, demonstrable and efficient.
In particular, LexAlign’s Security Diagnostic addresses the precise vulnerabilities that the criminal enterprises are exploiting: gaps in the customer’s operations, security, training, and sophistication.
LexAlign is designed to be an essential part of the new risk management framework Nacha is calling for.
LexAlign is an FIS partner and can be obtained by FIS clients with a simple two-page addendum to their existing FIS agreement.
ACH Part 1: Security
Hi,
In our conversations, many of you have expressed interest in how we can automate your annual customer ACH audits. Based on our conversations with Nacha, there are two parts to the ACH audit:
ACH Part 1: Security
In our Nacha conversations, we heard that assessing the customer for IT and information security is a required part of the annual audit. This is not trivial, as it’s gaps in your customers’ security that fraudsters are exploiting in the extraordinary explosion of credit-push fraud, which Nacha has called the now dominant form of ACH fraud.
But here’s the good news: we also heard that the LexAlign Security Diagnostic would satisfy this requirement.
The LexAlign Security Diagnostic enables customers to do a self-assessment against what the Federal Trade Commission recommends as appropriate and prudent practices. Financial regulators defer to the FTC for guidance on business security to address the extraordinary risk of fraud that targets them.
The LexAlign Security Diagnostic was designed to satisfy Part 1 of the ACH audit and addresses Nacha’s call for A New Risk Management Framework for the Era of Credit-Push Fraud by recruiting, sensitizing and empowering the customer as the front layer in the layered approach to security that regulators expect.
ACH Part 2: For Originators
Part 2 of the annual audit assesses and helps the customer with adherence to the Rules on, among other things, the appropriate use of SEC codes, transaction accuracy, and third-party notices, authorizations, and cancellations. LexAlign will be launching Part 2 for Originators in 2024.
Start with Security
We recommend starting with Part 1 to help customers defend against Credit-Push Fraud. In addition to helping the customers identify and remediate gaps, the LexAlign Security Diagnostic also furnishes the customer with a customized Security Policy as required under the Rules in case they don’t have one.
Getting started with security
Deposits aren’t secure unless customers are secure.
Security is crucial for all FI commercial customers but especially those doing RDC, ACH, and Wires.
LexAlign addresses ACH compliance audits in two parts:
ACH Part 1: Security
Assessing the customer for IT and information security is a required part of the annual ACH audit. This is not trivial, as it’s gaps in customers’ security that fraudsters are exploiting in the extraordinary explosion of Credit-Push Fraud.
ACH Part 2: Originators
Part 2 of the annual audit assesses and helps the customer with adherence to the Rules on, among other things, the appropriate use of SEC codes, transaction accuracy, and third-party notices, authorizations, and cancellations. LexAlign will be launching Part 2 for Originators in 2024.
This is why it’s important to get started with LexAlign ACH Part 1:
- LexAlign makes the expertise contained in regulatory guidance easily accessible and actionable for commercial customers.
- LexAlign shows them precisely where their operations deviate from what regulators require or recommend for online banking.
- LexAlign empowers commercial customers with actionable information and tailored resources to be the fortified frontline against fraud while automatically demonstrating proactive and effective risk management by the FI.
- LexAlign provides commercial customers with a security policy that regulators expect them to have.