FTC Endorses NACHA's New Anti-Fraud Controls

Law360, New York (January 24, 2014, 7:34 PM EST) -- Efforts by the bank industry group that controls the automated clearing house payment system to cut down on fraudulent consumer account debits have won strong backing from the Federal Trade Commission, according to agency papers released Friday.

In a comment letter, FTC staff urged NACHA, also known as The Electronic Payments Association, to adopt proposed rule amendments that would step up monitoring of ACH transactions and toughen the threshold rates of fishy account activity for a particular merchant that trigger internal investigation and enforcement proceedings....
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