Commercial Customer Newsletter |
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ANNOUNCING NEW ACH RESOURCE FOR ACH ORIGINATORS AND THIRD-PARTY SENDERS
In June of this year, Nacha developed a corporate originator site on www.nacha.org to provide Corporate end users with resources to assist with their ACH specific needs. This is a great add-on to your current ACH Originator and Third-Party training program.
Resources include:
- Ability to sign up for Upcoming Rule Changes
- Review of Open Comments
- End User Briefings
- Account Validation Resource Center
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FRAUD AWARENESS: PAY ATTENTION TO SUSPICIOUS EMAILS
We want to protect you against increased fraud attacks and especially during the COVID-19 pandemic. During COVID-19, there are important fraud mitigating tools that you can implement to further protect your funds. As a reminder, Business e-mail compromise:
- Fraudster monitors officer’s account for patterns, contacts, and information.
- After identifying the target, plays are conducted such as phishing, social engineering, email spoofing and the use of malware to either gain access to or confidence trick the business to surrender sensitive information.
- Fraudster uses the compromised or impersonated account to send payment instruction.
- Payment instruction direct the funds to an account controlled by the fraudster.
- Funds are quickly withdrawn once transmitted to another financial institution.
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SMALL BUSINESS ADMINISTRATION (SBA) FRAUD ALERT: GRANTS, LOANS AND PHISHING SCAMS
The Office of Inspector General recognizes that we are facing unprecedented times and is alerting the public about potential fraud schemes related to economic stimulus programs offered by the U.S. Small Business Administration in response to the Novel Coronavirus Pandemic (COVID-19). The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the largest financial assistance bill to date, includes provisions to help small businesses. Fraudsters have already begun targeting small business owners during these economically difficult times. Be on the lookout for grant fraud, loan fraud, and phishing.
Types of SBA Scams and Fraud Schemes:
Grants
SBA does not initiate contact on either 7a or Disaster loans or grants. If you are proactively contacted by someone claiming to be from the SBA, suspect fraud.
Loans
If you are contacted by someone promising to get approval of an SBA loan but requires any payment up front or offers a high interest bridge loan in the interim, suspect fraud.
- SBA limits the fees a broker can charge a borrower to 3% for loans $50,000 or less and 2% for loans $50,000 to $1,000,000 with an additional ¼% on amounts over $1,000,000. Any attempt to charge more than these fees is inappropriate.
- If you have a question about getting a SBA disaster loan, call 800-659-2955 or send an email to disastercustomerservice@sba.gov.
- If you have questions about other SBA lending products, call SBA’s Answer Desk at 800-827-5722 or send an email to answerdesk@sba.gov.
Phishing
If you are in the process of applying for an SBA loan and receive email correspondence asking for PII, ensure that the referenced application number is consistent with the actual application number.
- Look out for phishing attacks/scams utilizing the SBA logo. These may be attempts to obtain your personally identifiable information (PII),to obtain personal banking access, or to install ransomware/malware on your computer.
- Any email communication from SBA will come from accounts ending with sba.gov.
- The presence of an SBA logo on a webpage does not guaranty the information is accurate or endorsed by SBA. Please cross-reference any information you receive with information available at www.sba.gov.
Report Fraud
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NACHA Operating Rules Date Change: Supplementing Fraud Detection Standards for Internet-Initiated Entries (WEB Debits)
A WEB debit is defined as the origination of debit entries (recurring or Single-Entry) to a consumer’s account pursuant to an authorization that is obtained from the Receiver via the Internet. The effective date for an upcoming change in the Nacha Operating Rules is being extended by the Nacha Board of Directors. The WEB Debit Account Validation Rule now takes effect March 19, 2021, rather than Jan. 1, 2020.
Currently, ACH Originators of WEB debit (Internet-Initiated entries) are required to use a “commercially reasonable fraudulent transaction detection system” to screen WEB debits for fraud. This screening requirement will make it clear that “account validation” is part of a “commercially reasonable fraudulent transaction detection system.” The supplemental requirement applies to the first use of an account number, or changes to the account number.
At a minimum, the ACH Originator must use a commercially reasonable means to determine that the account number to be used for the WEB debit is for a valid account – that is, that the account to be used is a legitimate, open account to which ACH entries may be posted at the RDFI. The minimum standard imposed by the Nacha Operating Rules requires Originators to validate that an account is open and accepts ACH entries.
Because the determination of whether a business practice is considered commercially reasonable depends on a particular Originator’s business model and risk profile, and how it compares to similarly situated Originators, each Originator will need to determine for itself, such as legal counsel and risk department, whether verifying simply that an account is open is sufficient. For some Originators, a more rigorous assessment that also verifies account ownership may be appropriate to meet a commercially reasonable standard.
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CONTACT US WITH QUESTIONS
Let us know if you have any questions. We are happy to provide you with additional information on how to protect your account and comply with network rules and regulations.
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Dan “Dutch" Duchnowski
Chief Marketing Officer
Chief Deposit Officer
1400 Sam Nunn Boulevard
Perry, GA 31069
O: (478) 971-8031
M: (678) 620-5717
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Tracy Nesmith
Treasury Management Specialist
Assistant Vice President, AAP
105 Commerce Street
Hawkinsville, GA 31036
O: (478) 892-4024
M: (229) 938-0927
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About Planters Bank:
Founded in 1896, Planters Bank, the 8th oldest financial institution in Georgia, is headquartered in Cordele, Georgia, and operates seven full-service locations throughout Middle Georgia. Follow us on Twitter @bankPFB and Facebook @PlantersFirstBank.
Contact Planters Bank Toll-Free at 833.PFB.TEL1 (833.732.8351) or email us.
Member FDIC | Equal Housing Lender | Bank NMLS#500174
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