Many automated clearing house transactions are being originated by financial companies that have no automated fraud detection system in place, according to a report released Wednesday by the Folsom, Calif., provider of risk management and anti-fraud software Laru Corp.

Laru surveyed 17 ACH originators, which initiated more than 1.3 billion transactions last year. Roughly half said they use an electronic fraud detection system, while 12% have no system in place to spot fraudulent ACH payments, the vendor said. About 38% use a manual system.

About half the financial companies monitor outgoing ACH transactions daily, 19% do so weekly, and 19% do so on a monthly basis, Laru said.

Half the respondents said they received more fraudulent ACH payments last year than they did in 2006.

U.S. banks originated more than 18 billion ACH payments last year, according to Nacha, the electronic payments association.

William Vaughan, Laru's chief executive, said in a press release the report shows "a significant number of these institutions lack appropriate systems to detect, research, and properly resolve ACH transaction issues efficiently."