What is a major characteristic of ACH Fraud?

A major characteristic of ACH fraud is accessing funds illegally through ACH networks. This type of fraud typically involves unauthorized transfers of funds from one account to another, leveraging the Automated Clearing House (ACH) system, which facilitates electronic funds transfers. Criminals may exploit vulnerabilities in the ACH system, such as security gaps or compromised account information, to initiate fraudulent transactions.

This unauthorized access often involves methods that circumvent traditional banking security measures, making it a growing concern for financial institutions and consumers alike. It highlights the importance of stringent security protocols and monitoring systems to detect and prevent such illicit activities in the ACH landscape.

Other options, while they may relate to broader fraud schemes, do not specifically define a characteristic of ACH fraud itself. For instance, utilizing social media for fraudulent purposes refers more to social engineering tactics rather than direct manipulation of ACH transactions. Converting physical checks to cash typically relates to check fraud, and creating counterfeit payment information encompasses various types of fraud but does not directly pertain to the unique mechanisms and processes involved with ACH transactions.