Advanced cybersecurity strategies to help protect your organization

Cybersecurity threats are no longer limited to isolated attackers but are often orchestrated by highly organized crime syndicates and hostile nation-states. These adversaries are adept at understanding business models, internal processes and technology - often exploiting social media and other publicly available information to enhance their schemes. The sophistication of these adversaries requires advanced cybersecurity strategies.

Organizations can proactively combat fraud by implementing tools that verify the legitimacy of both the sender and receiver through methods like robust identity verification, real-time transaction monitoring, multi-factor authentication and collaborating with data sharing networks to identify suspicious patterns and flag potential fraudulent activity across different platforms. We will dive into these specific fraud prevention tools, proactive fraud detection and fraud prevention solutions offered by leading banks.

Positive pay and payee verification

There’s been a dramatic increase in check fraud over the last few years. In fact, the U.S. Treasury says it increased 385% between 2020 and 2024. Fortunately, positive pay is a robust check validation tool that corporations can use to pre-emptively combat check fraud by matching issued checks against those presented for payment. "Positive pay with payee verification significantly reduces the likelihood of fraudulent checks being processed," notes Mike Watercott, a working capital consultant at U.S. Bank.

When using positive pay with payee verification at U.S. Bank, payee name information will be matched to the issue file; two fields of 40 characters of payee information can be verified; and checks presented for payment including those cashed at U.S. Bank teller lines will be verified.

This dual-layered approach ensures that both the check amount and the payee name correspond with the issuer's records, making it drastically harder for fraudulent checks to slip through the cracks.

ACH blocks and filters

Transitioning from checks to ACH credits or other electronic payment methods can diminish the risk of check fraud. But it is also crucial to incorporate dual control mechanisms, ensuring that every payment instruction undergoes rigorous verification by multiple parties.

The overhead of manual monitoring can be mitigated by using automated tools like ACH blocks and filters. These tools provide businesses with the ability to pre-define permissible transactions, automatically flagging or blocking unauthorized attempts.

ACH Positive Pay is like an extension of an ACH filter. allowing users to set up pre-approved partners that are allowed to interact with accounts via ACH. "Employing ACH Positive Pay acts as an extra layer of defense, similar to traditional positive pay but for electronic transactions," says Watercott. Users get a notification if a pre-approved partner comes into the owner's account, and can approve or deny the transaction at that time.

Account validation

Account validation forms a pivotal component of proactive fraud detection. These services enable businesses to verify bank account legitimacy before initiating payments. This validation accesses a secure national shared database for check and savings accounts to verify before sending a payment. You can use it with ACH, wire transfers, instant payments like the RTP® network and checks and get real-time responses for any account-based transactions. "Using account validation tools can preclude fraudulent transactions by confirming account details in real-time." suggests Kasia Harvell, U.S. Bank risk officer specializing in corporate and commercial banking.

Early warning systems

Early warning systems are indispensable in identifying potential fraud attempts early in the transaction lifecycle. These systems utilize data analytics and pattern recognition to flag irregular activities, allowing institutions to act swiftly. "We employ real-time monitoring and advanced analytics to detect anomalies that may indicate fraud," states Dave Pilot, head of the Financial Crime Disruption team at U.S. Bank. Integrating these systems into everyday operations ensures a heightened level of surveillance over financial transactions.

For further practical steps on fraud prevention, refer to our fraud prevention checklist.

Some key takeaways for identifying fraud in your company

It’s important for business owners and decision makers to educate themselves about the sophisticated nature of modern fraud and recognize the organized, professional nature of contemporary cyber criminals. To help prevent fraud, businesses must adopt robust fraud mitigation tools like payee positive pay, ACH filters and account validation services.

Fraud should be treated as a continuous risk, not a one-and-done scenario. It is imperative for businesses to regularly reassess their security measures and leverage expert partnerships, like U.S. Bank, that can provide access to advanced fraud prevention solutions and expertise.

Navigating the complexities of cyber threats requires a proactive and informed approach. By leveraging advanced fraud prevention tools and detection measures, organizations can better protect their assets and data. To learn more about how U.S. Bank can help secure your financial operations, schedule a meeting with our experts.