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Fraud Controls Updated 2026-09-16

Fraud Controls for ACH and Wires: Dual Approval, Limits and Alerts

Payment fraud controls should be designed around how money can be requested, approved, released and reconciled. ACH and wire workflows differ, but both benefit from separation of duties, appropriate limits, independent verification and prompt monitoring.

By Editorial TeamLast reviewed: September 16, 2026Topics: ACH, Wires, Fraud Prevention

Map the payment lifecycle

Start by documenting who can create a payment, modify recipient details, approve a transaction, release it and reconcile the resulting bank activity. This reveals where one person could potentially control too many steps.

Dual approval

Dual approval means a second authorized person reviews a transaction before release. Define when it is mandatory, such as above a threshold or for new beneficiaries, and make sure the second approver can independently evaluate the request.

Beneficiary verification

Requests to change bank instructions should be treated as high risk. Use an independent communication channel and verify the request against trusted records. Do not rely solely on a reply to the original email thread.

Limits and entitlements

Alerts and monitoring

Configure alerts for activity that warrants review, such as unusual amounts, new recipients or unexpected payment events. Alerts are most useful when someone owns the response and the escalation procedure is documented.

Reconciliation as a detective control

Even strong preventive controls can fail. Daily reconciliation and exception review can identify unauthorized or unexpected activity after the fact. Escalate suspicious transactions through the organization's established bank and security procedures.

Updated operational note

Last reviewed: September 16, 2026. Security features and payment controls vary by bank and service. Confirm current settings with the financial institution and align them with internal security policies.

Update note: This article was reviewed and updated on September 16, 2026. Product features, bank procedures, fees, cutoffs and security requirements can change, so verify current details with the relevant financial institution.