NACHA Risk Alert: Notification of ACH Data Breach Incident

An ODFI in Green Bay, WI has informed NACHA of a breach of consumer-level data in accordance with NACHA’s Interim Policy on ACH Data Breach Notification Requirements.  NACHA has provided both ACH Operators a list of affected RDFI routing numbers and contact information of the designated ODFI security representative for communications to RDFIs. The ACH Operators will follow their respective procedures to notify their ACH services customers.

This particular incident involves keylogging and is reportedly limited in its scope. However, the ODFI reported that (1) the breached data contains the consumer name, account number and routing number; and (2) they were not successful in communicating with all affected RDFIs.

ACH Data Bre ...

Second Quarter 2008 ACH Network Statistics

ACH Payments up 8.0 Percent in 2nd Quarter 2008
ACH Network volume increased by 8.0 percent in the 2nd quarter of 2008 compared to the same quarter a year ago, rising to a total of 3,738,929,962 payments. The dollar value of these payments was $7.6 trillion, an increase of 5.2 percent over the 2nd quarter figures for 2007. 

 
Commercial ACH volume accounted for 91.5 percent of transactions, or 3,420,733,437 payments.  Federal government ACH volume was 318,196,525, which includes tax refunds and economic stimulus payments. 

 
The largest growth rate occurred in Internet-initiated entries (WEB), which increased by 21.5 percent to 505.6 million.  (This excludes Back Office Conversion, which was not av ...

IAT Effective Date Extended to September 18, 2009 

Issued: July 31, 2008
Effective: September 18, 2009

EXECUTIVE SUMMARY
NACHA’s Board of Directors has extended the effective date of the International ACH Transaction (IAT) rules and formats for six months, to September 18, 2009. NACHA and the two ACH Operators - the Electronic Payments Network and the Federal Reserve - strongly encourage financial institutions to have all production software implemented by March 20, 2009, the original effective date, and to use the six-month extension for additional process documentation, testing with the ACH Operators, and customer education, training and testing.

ALL U.S. DEPOSITORY FINANCIAL INSTITUTIONS MUST PREPARE
Receiving Depository ...

WASHINGTON — The Office of the Comptroller of the Currency today issued a proclamation allowing national bank offices affected by Hurricane Dolly to close at their discretion.

In issuing the proclamation, Jennifer Kelly, Senior Deputy Comptroller for Mid-Size/Community Bank Supervision, said she expects that only those bank offices directly affected by the hurricane will close.  Those offices should make every effort to reopen as quickly as possible to address the banking needs of their customers, she added.

SOURCE CONTACTS: Office of the Comptroller of the Currency; Related Link:

Proclamation (http://www.occ.gov/ftp/release/2008-86a.pdf) 

U.S Treasury Recognizes 12 Financial Institutions as Go Direct® “Champions"

The U.S. Department of the Treasury announced that 12 financial institutions have taken the top spots in a national competition to enroll Social Security check recipients in direct deposit as part of its national Go Direct campaign. The winners were recognized at a Treasury ceremony in Washington, D.C.

The Go Direct campaign has hit a key milestone – two million enrollments in direct deposit – representing $178 million in savings to taxpayers over the next 10 years. 

The complete text of the U.S. Treasury press release and a list of the Go Direct Champions can be found here: http://www.godirect.org/media/index.cfm

Industry Action to Address Demand Draft Fraud 

As reported in the Direct Member conference call reviewing significant issues and outcomes from the NACHA Board meeting of March 2008, law enforcement and consumer protection agencies report that certain fraudulent origination activity is migrating to demand drafts (remotely created checks) as more aggressive risk management and anti-fraud programs are implemented on the electronic payment networks. Because of the technological and organizational limitations of the check clearing system, the industry lacks the ability to adequately track the magnitude and investigate the sources of unauthorized demand drafts. 

Regulation CC provides for a warranty by a financial institution that transfers or presents a remotely created check that the item is authorized. Because the Federal R ...

NACHA ANNOUNCES RECIPIENTS OF DISTINGUISHED SERVICE AWARDS

HERNDON, Va., May 19, 2008—NACHA—The Electronic Payments Association announced the 2008
recipients of its Distinguished Service Awards. The recipients, who will receive their awards at the
PAYMENTS 2008 chairperson’s leadership reception at NACHA’s annual conference, include:

• Gerald F. Milano, former senior vice president of The Clearing House, serving as business
manager for SVPCO—Check Services for outstanding leadership and commitment to the
payments industry

• Samuel D. Smith, senior vice president, retired, Federal Reserve Bank of Cleveland for
outstanding leadership and commitment to the payments industry

• Craig T. Vaream, managing director of ACH and global check deposits product executive for

SYNOVUS FINANCIAL CORPORATION RECEIVES NACHA’S 2008 GEORGE MITCHELL PAYMENTS SYSTEMS EXCELLENCE AWARD

LAS VEGAS—May 20, 2008—NACHA—The Electronic Payments Association announced today
that Synovus Financial Corporation has been awarded its 2008 George Mitchell Payments
Systems Excellence Award. Garry Hedges, director of planning and payments strategy, will
accept the award on behalf of Synovus Financial Corporation at NACHA's PAYMENTS 2008
conference in Las Vegas.

Synovus, operating 37 separate banks across the Southeast, is a leading technology innovator in
check imaging, mobile payments and alternative payments.

"Synovus is an organization that has turned the challenge of a decentralized structure into a
successful business model and used technology as their core ten ...

FIRST DATA’S TELECHECK AWARDED NACHA’S

2008 KEVIN O’BRIEN ACH QUALITY AWARD

LAS VEGAS, May 20, 2008—NACHA—The Electronic Payments Association awarded its 2008
Kevin O’Brien ACH Quality Award to TeleCheck Services, Inc., a First Data company, for its
leadership and contributions to advancing the highest standards of efficiency and ACH Network
quality. Mark Wallin, general manager of TeleCheck and First Data’s ACH services will accept the
award today at NACHA's PAYMENTS 2008 conference in Las Vegas.

“TeleCheck has been a positive participant and active contributor to the advancement of the
electronic payments industry, the ACH Network and NACHA for years,” said Elliott C. McEntee,
chief executive officer of NACHA—The Electronic Payments Association. “TeleCheck consist ...

PETER YEATRAKAS RECEIVES NACHA’S LIFETIME ACHIEVEMENT AWARD

Former President and CEO of WesPay Honored for 34 Years of Industry Service

LAS VEGAS— May 20, 2008—NACHA—The Electronic Payments Association has announced that
Peter Yeatrakas, president emeritus (retiring June 2008), Western Payments Alliance (WesPay), will
receive its Payments Systems Lifetime Achievement Award at PAYMENTS 2008. Yeatrakas is being
recognized for his long career in and contributions to the ACH Network and electronic payments system.

“Pete Yeatrakas is a visionary who has left his mark on the nation’s payments systems,” said Elliott C.
McEntee, chief executive officer of NACHA—The Electronic Payments Association. “Pete has been a true
industry leader, instrumental in developing some of the key i ...