Flagright Becomes Nacha Preferred Partner for ACH Compliance and Fraud Monitoring
Key Takeaways
- •Nacha designated Flagright as a Preferred Partner in its ACH compliance, fraud monitoring, and risk and fraud prevention categories.
- •Flagright’s software monitors payment activity using machine learning and customer-configured rules to flag suspicious ACH behavior.
- •The system can help detect patterns such as rapid fund movement, account takeover indicators, mule activity, and multi-account abuse.
- •Nacha said fraud prevention is a priority for the ACH Network, which moves tens of billions of payments each year.
- •Flagright said the partnership will give it a broader forum to engage the payments community and support real-time, risk-based monitoring.
Nacha announced that Flagright has become a Nacha Preferred Partner for ACH Compliance, Fraud Monitoring, and Risk and Fraud Prevention. Nacha governs the operating rules for the ACH Network, the U.S. clearing system that moves tens of billions of payments each year, and its Preferred Partner program designates companies whose products and services support the needs of ACH participants. Flagright, whose software applies machine learning to transaction monitoring and fraud prevention for financial institutions and fintechs, is now recognized in the program's compliance, fraud monitoring, and risk and fraud prevention categories.
Organizations use Flagright’s transaction monitoring engine to monitor incoming and outgoing payment activity, identify deviations from expected behavior, and prioritize alerts according to their own risk policies. Flagright evaluates ACH payments using several factors, including transaction and account behavior, amount, customer and counterparty history, and machine-learning anomaly detection. Customer-configured rules can identify patterns such as rapid movement of funds, unusual payment behavior, account takeover indicators, mule activity, and multi-account abuse. The designation comes as institutions work to keep fraud and anti-money-laundering controls current with network rules and evolving criminal methods, and as Nacha has separately advanced measures intended to improve fraud data sharing and account validation across the ACH Network.
“Safety is paramount to all ACH Network payments, and fighting fraud is of the highest importance for Nacha,” said Jane Larimer, Nacha President and CEO. “We are pleased to welcome Flagright as a Nacha Preferred Partner.”
“ACH is one of the most important payment systems in the United States, and its continued growth depends on fraud and compliance controls that can keep pace with changing criminal behavior without creating unnecessary friction for legitimate payments,” said Baran Özkan, Flagright Co-founder and CEO. “Becoming a Nacha Preferred Partner gives Flagright a stronger forum to engage the payments community, share practical approaches to real-time, risk-based monitoring, and help institutions connect ACH fraud detection, AML controls, investigations, and governance in one operating system. We look forward to supporting a safer, more resilient ACH ecosystem.”
