TrueACH Behavioral Analysis: Incoming ACH Monitoring

Overview

TrueACH now includes behavioral analysis functionality that monitors the volume and dollar amount of incoming ACH transactions on a per-account basis. This monitoring applies to all incoming transactions and supports the FI's compliance with the NACHA mandate, which requires RDFIs to establish risk-based processes to identify credits that may have been initiated due to fraud.

As transaction history accumulates for an account, the system establishes a behavioral baseline, a statistical profile of that account's normal ACH activity. Once a baseline is established, incoming transactions are compared against it, and alerts can be generated when activity falls outside expected patterns.

How Baselines Are Established

• The FI can determine a minimum transaction threshold, which is the minimum number of historical transactions that TrueACH has seen for an account before a baseline is calculated.
• Historical data can be provided to help establish baselines, allowing accounts to reach the threshold and begin generating alerts sooner than if TrueACH had to accumulate all transaction history from a single starting point.
• Accounts that have not yet met this threshold will not generate behavioral alerts, since there isn't enough history to determine what "normal" activity looks like.
• Once the threshold is met, TrueACH monitors new activity against the account baselines that have been established. 

Baseline Metrics Displayed

For each account, the Behavioral Analysis panel displays the following calculated metrics:

Transaction Amount Statistics

• Average Transaction Amount
• Average Credit Amount
• Median Transaction Amount
• Minimum Transaction Amount
• Maximum Transaction Amount

Daily Transaction Volume Statistics

• Average Daily Transactions
• Average Daily Credit Transactions
• Median Daily Transactions
• Minimum Daily Transactions
• Maximum Daily Transactions

These values give users a quick view of an account's established behavioral profile and provide context when reviewing an alert, allowing users to see how a flagged transaction compares to the account's historical norms.