A community bank based in the Midwest recently intercepted an elaborate ACH fraud scheme involving unwitting mules and multiple financial institutions. With $1B in assets and eight branches, this bank's case proves sophisticated fraudsters aren't solely targeting the nation's largest institutions, and banks of all sizes should consider additional fraud prevention strategies to counter today's evolving threats.
Founded in the early 1900s, this community bank (let's call it "CB" for short) knows that customer trust and its reputable brand must be actively guarded against cybercrime. Accordingly, it takes a proactive approach to cooperating with anti-fraud teams at other banks and federal law enforcement to aid criminal investigations. However, this case provides two lessons: all financial institutions - and their customers - should closely monitor online account activity and not rely entirely on multiple layers of authentication to protect them, and catching suspicious online access early prevents fraud from materializing later in other channels.