In this episode of the Payments Perspective podcast, Jeff Duffy and Trevor Lain, attorney and founder of LexAlign, discuss the pending Nacha Risk Monitoring Rule changes and the evolving landscape of fraud monitoring and compliance in financial institutions.

They explore the shift from debit-based fraud to credit-push fraud as the leading threat to account holders, the related new regulatory obligations on customers to perform active fraud monitoring, the regulatory structure that places responsibility on the FI for their customers’ compliance, the challenges of managing remote operational compliance, and how leveraging emerging automation and AI can help FIs meet these rising compliance demands.

Trevor emphasizes the need for data-driven risk management, the fallacy of all-or-nothing compliance, and the importance of being able to demonstrate active oversight. The conversation highlights the necessity of adapting to new fraud monitoring rules and the role of technology in enabling management of remote operational compliance.