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.