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ACH (Automated Clearing House) payments are a vital part of how businesses pay employees, vendors and partners. As usage has grown, so have fraud attempts targeting ACH transactions – especially scams like business email compromise (BEC), vendor impersonation and payroll redirection.

To address these risks, Nacha announced new Risk Management Rules effective March 20th, 2026. These changes are designed to reduce ACH fraud, improve visibility into payment activity and strengthen the industry’s ability to recover funds when fraud occurs.

Below is an overview of what’s changing and what your business can do to prepare.

Why Nacha is updating the rules

The new rules reflect Nacha’s broader effort to:

• Combat evolving fraud schemes – especially scams where fraudsters trick businesses or employees into sending legitimate ACH payments under false information.
• Improve transparency across the ACH network – so that financial institutions can easily identify, flag and respond to suspicious activity.
• Enhance fund recovery efforts – by making it easier to trace and react quickly when fraudulent transactions occur.

In short, these changes are about making the ACH network safer and more resilient for everyone who sends or receives payments.

Key changes businesses should understand

1. New fraud monitoring requirements
Nacha is requiring ACH participants to implement risk-based monitoring to better detect and prevent fraudulent ACH activity.

For businesses, this means your financial institution and service providers will be expected to:

• Monitor payment patterns and behaviors for unusual or high-risk activity
• Use tools and controls that help identify potential fraud
• Respond quickly when suspicious transactions appear

While much of the technical monitoring occurs at the bank or processor level, businesses play an important role by reviewing their own ACH activity and using available fraud-prevention tools.

2. Who’s affected and when
The new requirements will be rolled out in two phases:

• Phase 1 – March 20, 2026
  • Applies to high-volume Originators, ODFIs (Originating Depository Financial Institutions) and RDFIs (Receiving Depository Financial Institutions).
• Phase 2 – June 19, 2026
  • Extends to all remaining participants in the ACH network.

If your business originates a significant volume of ACH payments, you may be impacted sooner, particularly through your bank’s enhanced monitoring and risk controls.

3. New definition of “False Pretenses”
Nacha is introducing a clearer definition of “False Pretenses” to directly address fraud that occurs when payments are initiated based on deceptive information rather than unauthorized account access.

This includes scams such as:

• Vendor impersonation – A fraudster pretends to be a known supplier and asks you to change bank details.
• Business email compromise (BEC) – Criminals gain access to or spoof a company email account and send convincing payment instructions.
• Payroll redirection schemes – An attacker poses as an employee and requests changes to direct deposit information.

By defining “False Pretenses,” Nacha is recognizing that not all fraud involves a “hacked” account – often, the payment itself is “authorized” but based on false information. The new rules aim to support better prevention and stronger pathways for dispute and recovery.

4. Standardized entry descriptions: PAYROLL and PURCHASE
To improve clarity and make it easier to monitor transactions, Nacha will require standardized descriptions for certain ACH entries:

• PAYROLL – Used for payroll-related payments, such as employee direct deposits.
• PURCHASE – Used for purchase-related payments, such as vendor or supplier payments.

These standard entry descriptions help:

• Enhance transparency into the purpose of each payment
• Improve monitoring and analytics for fraud detection
• Support faster identification of unusual or out-of-pattern transactions

For businesses, this may mean working with your bank or payroll/ERP provider to ensure the correct use of these descriptions in your ACH files.

What your business can do now

1. Review your current ACH processes

• Evaluate how ACH payments are originated, approved and reconciled.
• Identify any gaps where a fraudulent payment request could slip through—for example, a single person who can both set up and approve new vendors.

2. Strengthen internal controls

• Require dual approval for new vendors, changes to vendor bank details and high-dollar payments.
• Implement callback or out-of-band verification for changes to payment instructions.
• Ensure payroll, AP and finance teams are trained to recognize red flags like urgent or secretive requests.

3. Coordinate across teams
Compliance, finance, operations and IT should work together to:

• Align internal procedures with the upcoming Nacha standards
• Document and regularly test fraud-prevention controls
• Confirm that vendor management and payroll processes include verification steps for bank account changes

4. Engage early with your bank and providers

• Discuss how your bank, ERP, payroll provider or AP automation platform will support the new Nacha rules.
• Confirm that your systems will be ready for any file-format or description changes (such as PAYROLL and PURCHASE).
• Ask about available monitoring tools, alerts and reporting to help you detect unusual ACH activity.

How Signature Bank can help
At Signature Bank, protecting your business from payments fraud is a core priority. Our solutions are built to help you meet evolving Nacha requirements while keeping your operations efficient and secure.

Key tools and capabilities include:

• Positive Pay – Adds a critical layer of protection to help detect unauthorized or altered checks and or ACH debits before funds are released.
• ACH monitoring & controls – Supports risk-based review of ACH activity, including filters, blocks and alerts tailored to your business.
• Finrails® Technology – Integrates AP automation with bank-backed controls, giving you greater visibility, audit trails and security around your payments.

Whether you are already originating ACH transactions or considering additional automation, our team can work with you to:

• Review your current ACH setup and controls
• Help you understand how Nacha’s 2026 changes apply to your organization
• Recommend practical steps to reduce fraud risk and improve compliance

If you would like assistance evaluating your ACH processes or fraud-prevention tools, please contact your Signature Bank Relationship Manager or email us at tm@signaturebank.bank.

For additional guidance and answers to commonly asked questions, please click here. Staying ahead of Nacha rules changes now can help your business operate with greater confidence, stronger controls and a more resilient payments environment in the years ahead.

Nearly 8 in 10 organizations were targeted by payment fraud last year – and most didn’t recover their losses.

For many business owners, payment fraud still feels like something that happens to someone else. Until it happens to you.

The truth is, fraud isn’t just growing – it’s getting smarter. Sophisticated tactics like altered checks, fake vendor ACH debits and business email compromise are costing businesses time, money, process disruption and potential reputational damage. And while larger companies often have robust fraud teams, smaller and mid-sized businesses are increasingly being targeted because criminals know they may lack strong controls.

At Signature Bank, we believe every business deserves the tools to defend itself – and that starts with Positive Pay Fraud Protection.

What is Positive Pay?
Positive Pay is a low-cost, automated fraud detection service that screens incoming payments – both checks and ACH – against a list of what your company has authorized. If a payment doesn’t match the details you’ve provided (think: wrong amount, wrong vendor, wrong check number), you get an alert and decide whether to approve or reject it.

Think of it as your early warning system – one that works around the clock and doesn’t let fraud slip through unnoticed.

So why aren’t more businesses using it?
It’s a question we hear often, even from our own clients. Many businesses assume their current accounting software or manual review process is “good enough.” Some have never experienced fraud and don’t see the urgency. Others are simply unsure of the setup process or assume it will be time-consuming and cost prohibited.

Here’s the reality: Only 22% of organizations that were victims of payment fraud in 2024 were able to recover 75% or more of their losses. That means for most, once the money’s gone – it’s gone.

Signature Bank makes it easy
We’ve made it our mission to take the friction frustration out of fraud protection. Signature Bank’s Treasury Management team works directly with clients to implement Positive Pay quickly and painlessly. We help you define the right rules, configure alerts, and ensure your files are being submitted securely and accurately.

What sets us apart is our hands-on approach.
You’re not expected to handle fraud detection alone. Our bankers monitor suspicious activity with you – and when something doesn’t look right, you’re not just getting an automated email. You’re getting a partner.

Whether you prefer to submit check files online or transmit them securely via SFTP, we’ve got the flexibility to meet your workflow.

Three ways Positive Pay protects you

• ACH Positive Pay
  Create rules for vendors, transaction types and dollar limits. We flag or block anything outside your parameters and alert you when action is needed.
• Check Positive Pay
  Prevent altered, forged, or duplicate checks by matching payee, amount, and check number against your issued file.
• Reverse Positive Pay
  Want more control? We’ll send you a list of cleared checks for review – so you can approve or reject based on your own thresholds.

Don’t wait for fraud to happen
Positive Pay isn’t just a defense mechanism. It’s peace of mind. It’s control. It’s knowing that you have someone in your corner when the stakes are high.

If your business isn’t using Positive Pay yet, now is the time to act. Fraud is no longer a someday problem – it’s here. And it’s growing.

Contact Penny Foust
pfoust@signaturebank.bank
773-499-7157

Let’s protect what you’ve built.

The holiday season is filled with celebrations and time to unwind with family and friends. But it also offers more ways to shop, give and travel, creating opportunities for scammers to steal personal and financial information. Fraud isn’t just growing — it’s getting smarter.

In 2024, the Federal Trade Commission (FTC) reported record-breaking losses — $12.5 billion — with imposter scams among the costliest fraud types. As criminals use increasingly advanced tools, it’s more important than ever to stay vigilant. The following tips can help you protect yourself, your devices and your accounts throughout the busy season.

Common holiday scams to watch this season

Phishing, smishing and imposter messages
Scammers send emails (phishing) or texts (smishing) that appear to be shipping alerts, purchase confirmations or bank notifications. Many now use artificial intelligence (AI) to mimic real brands, making links and language look more convincing.

Tips to stay safe: Never click any links in messages you did not expect to receive. Go directly to the company’s website instead.

Fake online stores and social media seller scams
Fraudsters create storefronts with professional photos and steep discounts. But they have no intention of delivering products. Others pose as sellers on social platforms and request payment outside secure channels.

Tips to stay safe: Carefully check website URLs, review the return policy and research the company before entering payment information.

Package-delivery scams
Fake USPS, UPS and FedEx notifications are especially common during the holidays. These messages often include urgent language and tracking links. If you receive a package you didn’t order, it may also indicate that someone is testing stolen personal information.

Tips to stay safe: Avoid clicking links in package-delivery emails. Visit the carrier’s official site and enter your tracking information manually. If you receive a package you didn’t order, check your accounts for unfamiliar charges and update passwords on sites where you shop.

Gift card scams
Scammers pressure consumers to pay with gift cards because the funds are hard to trace and difficult to recover. Criminals also sometimes tamper with gift card packaging, recording the card and PIN information before the card is purchased.

Tips to stay safe: Inspect packaging closely and keep receipts until the card is used. Be cautious of emails, phone calls or texts demanding payment via gift cards. 

Charity fraud
The holidays bring an increase in both charitable giving and fraudulent fundraising requests. Scammers often create fake websites or impersonate real organizations to solicit donations.

Tips to stay safe: Confirm the charity’s name, website and registration before donating. Avoid urgent requests or pressure to give.

Travel scams and cybersecurity risks
Holiday travel often leads to fraudulent rental listings, fake confirmation emails and malicious Wi-Fi hotspots, which can put both your plans and your personal information at risk.

Tips to stay safe: Be cautious about deals advertised through pop-ups or on unfamiliar travel sites. When you’re on the go, keep devices secure, avoid public charging stations and turn off auto-connect settings to prevent criminals from accessing your device.

How to protect yourself this holiday season

Update and secure your devices
Keeping your operating system, apps and antivirus software up to date is one of the easiest ways to protect your information. Updates fix security flaws and help block malware. Consider turning on automatic updates. Lock your device when not in use and set a strong passcode.

Use strong authentication
Usernames and passwords alone aren’t enough to secure your accounts, such as email, banking and shopping apps. Enable multifactor authentication to add an extra layer of protection and reduce the risk of account takeover.

Shop and browse safely
Avoid making purchases or entering passwords on public Wi-Fi. Use trusted websites and type in URLs directly when possible. Stick with secure payment methods such as credit cards, which offer stronger fraud protections and don’t draw directly from your bank account. Monitor your accounts regularly and enable transaction alerts so you’re notified of unusual activity.

Avoid risky charging and connections
Never plug your phone into public USB charging stations at airports or hotels. Criminals can install malware through those ports. Use your own charging adapter connected to a wall outlet, and turn off auto-connect for Wi-Fi, Bluetooth and near-field communication to prevent unwanted connections.

Declutter your digital life
Delete apps you no longer use and keep the ones you do use up to date. Review permissions for location, camera and microphone to ensure each app has only the access it needs. Purge old files you no longer need and review privacy settings on accounts you use to shop or socialize.

Secure your home network
Use strong encryption and update your router’s firmware to protect devices connected to your home Wi-Fi. A secure home network helps block cyberattacks and protect sensitive information.

How Signature Bank helps safeguard your accounts

Signature Bank uses layered security, account monitoring and fraud-prevention tools to help protect your financial information. If you notice unusual activity or receive a suspicious message that appears to come from us, please contact us immediately at 773-467-5600. Quick action can help prevent losses and keep your accounts secure.

What to do if you think you’ve been targeted

If you believe you’ve been a victim or interacted with a fraudster, follow these steps:

• Stop communicating immediately
• Change passwords
• Enable multifactor authentication
• Run an antivirus scan
• Report the incident to the FTC at ReportFraud.ftc.gov
• Call us immediately at 773-467-5600 so we can help monitor and protect your accounts

A little preparation can make a big difference. By staying alert, updating your devices and using safe online practices, you can protect your information and enjoy a more secure holiday season.

Business owners face additional fraud and cybersecurity risks during the holiday season.

Holiday cyber risks that target businesses

The end of the year brings increased invoice processing, payment activity and charitable giving, which can attract scammers seeking access to business funds or systems. Nearly 8 in 10 organizations were targeted by payment fraud last year, and only 22% of those affected recovered most of their losses. Below are some of the most common risks companies face during the holidays, along with steps to help reduce them.

Business email compromise
Fraudsters impersonate executives or vendors and request urgent wire transfers or changes to payment instructions.

Vendor and invoice scams
Criminals send fake invoices or claim a vendor’s bank account has changed. Always verify changes through a known phone number.

Seasonal hiring and payroll fraud
Fake applicants submit attachments that contain malware or request redirection of paychecks.

How to strengthen your defenses

• Train employees on phishing scams and secure internet use
• Use role-based access controls to restrict access to sensitive data
• Turn on multifactor authentication across systems
• Require dual control for outbound payments, requiring two authorized users to approve transactions before funds are sent
• Maintain secure Wi-Fi networks
• Implement automated backups and data recovery plans

The U.S. Treasury is ending paper checks — here’s what you need to know

Starting September 30, 2025, the U.S. Treasury will officially stop issuing paper checks for federal payments, including vendor disbursements, tax refunds and benefit payments. This move is part of a broader effort to reduce fraud, increase efficiency and support the ongoing digital transformation of financial services.

Read this ABA announcement for more information.

Paper checks have long been considered slow, costly and vulnerable to fraud. With this federal shift, now is the time for businesses to explore smarter, more secure payment options. At Signature Bank, we’re helping clients make the transition with confidence.

Why the transition away from checks matters

Paper checks introduce delays, require manual processing and are increasingly targeted in fraud schemes. According to AFP’s 2025 survey, 63% of organizations reported check fraud in 2024— making it the most commonly targeted payment method. The U.S. Treasury’s decision to phase them out is a clear signal: digital payments are no longer optional — they’re the new standard.

Signature Bank offers trusted alternatives

Signature Bank partners with small and medium-sized businesses to provide modern, secure payment solutions that help you keep pace with today’s financial environment. From ACH payments to advanced automation tools, we’re here to support your transition from checks with efficiency and expertise.

• ACH transfers are a reliable, low-cost way to pay vendors, process payroll and remit taxes. They offer a secure and timely alternative to paper checks, with better tracking and fewer delays.

• Finrails® AP automates your accounts payable process, reducing human error and saving valuable time. Eliminate paper checks, improve visibility and enhance control over your business payments. Is your business ready for automation?

• Our Signature Bank Visa® Corporate Card Program offers powerful solutions for managing expenses at any scale. Whether you’re a small business looking for flexibility or a larger organization needing more robust controls, we’ve got you covered.
  • Business Cards provide everyday convenience with expense tracking tools, spending limits and built-in fraud protection — ideal for businesses handling variable costs or recurring payments.
  • Corporate Cards are tailored for larger companies with multiple employees, offering advanced reporting, centralized billing and customizable user controls to streamline expense management and improve oversight.

Learn more strategies to protect your business from fraud. 

Talk with a payments expert

We understand that switching payment methods can raise questions. That’s why our team of Signature Bank payment specialists is here to help. Whether you’re looking to streamline operations, reduce risk or modernize your AP process, we’ll help you identify the best solution for your business. 

By Penny L. Foust – CTP, Senior Vice President, Signature Bank for Milwaukee Business Journal

With 80% of businesses experiencing payments fraud in recent years, treasury management is more critical than ever. Yet, many companies overlook key questions when selecting a banking partner. Choosing the right banking partner isn’t just about the loan, rate and processing transactions — it’s about optimizing cash flow, reducing risk and ensuring your business remains financially agile.

These functions are all supported by the commercial banking treasury management team. The right banking partner acts as an extension of your team, providing insights, automation and security that safeguard your financial future.

Beyond the basics: What to ask your treasury management team

All banks offer treasury management services, but not all provide the same level of expertise and efficiency. To ensure a smooth partnership, ask potential banking partners these key questions:

1. What is the onboarding and implementation timeline? Some transitions take days, others take months. Timing and the ease of transition can significantly impact your operations.
2. Does the bank’s technology integrate seamlessly with your ERP or accounting software? Integration reduces manual processes, prevents errors and improves cash management.
3. How does the bank handle treasury management discovery? A strong banking partner should not simply mirror your current setup but also reduce fees, identify new efficiencies, mitigate risk and improve cash flow.
4. Can the bank tailor its services to meet the needs of mid-sized and privately held companies? The ability to deliver customized digital treasury management solutions with high touch customer service is key to long-term success. You need a local treasury management team with experience and knowledge that understands your business.

Look for a banker who will roll up their sleeves, conduct a thorough analysis and create solutions that fit your business — not just provide off-the-shelf services.

Automation and AI: The future of treasury management

The fewer manual steps in your treasury management processes, the lower the risk of fraud and error. Businesses should assess:

1. Automated payment processing. Can the bank streamline electronic payments for vendors and payroll, reducing reliance on checks?

• Virtual card payments. These one-time-use digital cards provide greater security than traditional checks by generating unique card numbers for the amount specific to each vendor payment that cannot be altered or reused for future transactions
• ERP integration capabilities. Many banks claim to offer automation, but without true ERP connectivity, businesses may still need to manually upload and reconcile payments. For example, Signature Bank’s customized, automated payables platform integrates with over 400 accounting softwares.

AI is also transforming treasury management, bringing both opportunities and risks. While AI-driven efficiencies improve payment processing and fraud detection, they also open the door to new cybersecurity threats. Today, it is very easy to impersonate someone on the phone or online. Vet your banking partner on:

2. Fraud prevention measures for AI-generated risks. How does the bank authenticate users in an era where voice and digital impersonation are growing threats?

3. Multi-factor authentication. Does the bank implement layered security beyond basic login credentials?

4. Ongoing security training. Will your bank help educate your team on emerging fraud tactics and how to minimize risk?

Security first: Vetting a bank’s fraud prevention measures

Fraud risk, both external and internal, is a growing concern for businesses. Unlike consumers, businesses only have one business day to identify unauthorized transactions before they become unrecoverable. Ask your banking partner:

• What fraud detection and prevention tools are in place? Beyond basic positive pay fraud protection, does the bank offer real-time monitoring and alerts?
• How does the bank help businesses mitigate internal fraud risks? Employee theft is a common issue in privately held companies — your bank should offer internal controls to reduce this risk.
• Does the bank provide a cybersecurity checklist? This should include steps for preventing phishing attacks, ransomware threats and online banking takeovers.

Banker turnover: A hidden risk to your business

A strong banking relationship should be built on continuity. Many banks experience high turnover among commercial banking professionals, forcing businesses to start over with a new banker every couple of years. When vetting a treasury management partner, ask:

• What is the average tenure of your relationship managers? A revolving door of bankers can disrupt service quality.
• How does the bank ensure multiple team members understand your business needs? A team-based approach provides stability and ensures continuity even when individual bankers change roles. Your commercial banking and treasury management team should understand the ever-changing needs of your business.

Managing international treasury needs

Almost every company has some portion of its business that includes international payments, even if it’s just cross border payments to Canada and/or Mexico. The complexities of global transactions require expertise in:

1. Global payment solutions
2. Foreign currency administration and exchange rates
3. Risk management
4. Strategic advisory services

The rules and regulations for business transactions differ greatly from consumer banking, and your bank must be well-versed in compliance requirements for international commercial payments. A knowledgeable treasury management team should guide you through cross-border transactions, ensuring efficiency, security and regulatory compliance tailored to mid-sized and privately held businesses.

Value-added banking: More than just transactions

Your bank should be more than a service provider — it should be a strategic partner.

A true relationship-based banking experience means:

1. Proactive advice and industry insights. Your bank should bring new treasury solutions aligned with your strategic goals before you even know you need them.
2. Regular strategy check-ins. Schedule quarterly or semi-annual meetings to discuss changes in your business and evolving treasury and cash management needs.
3. Service, support and availability. In times of crisis, your banking partner should be accessible, knowledgeable and ready to help, becoming an extension of your team.

Final thoughts: Take the next step

Choosing a treasury management banking partner isn’t just about services, it’s also about partnering with a trusted advisor who can help your business navigate financial risks and opportunities. Before making a decision, schedule a strategy session with potential banking partners. Ask the tough questions about fraud prevention, automation and ERP integration. The right partner won’t just manage your treasury — they’ll enhance your business’s financial future.

Learn more about Signature Bank’s personalized treasury management services. Connect with Penny Foust at pfoust@signaturebank.bank.

Founded in 2006, Signature Bank is a privately held state-chartered bank in Illinois and Wisconsin. As a relationship-based commercial bank, we provide unmatched customer service while operating our business carefully and conservatively. Technology-driven and well-capitalized, Signature Bank is one of the fastest-growing independently owned business banks in the Midwest and has been named on American Banker’s list of “Best Banks to Work For” for seven consecutive years. Reach out to info@signaturebank.bank to learn more.

Foust is a certified treasury professional with more than 25 years of experience helping clients optimize their financial operations while mitigating risk. She specializes in fraud solutions and advanced cash management structures and is active in the Wisconsin Association for Financial Professionals. As a Wisconsin native, Foust appreciates the state’s open countryside and strong sense of community.

Signature Bank will never ask for your password!

Urgent: Beware of ongoing bank robocalling scam

The latest bank robocalling scam involves scammers impersonating bank fraud departments, bank investigators or bank security departments. These scammers will try to trick you into telling them your personal data so they can hack into your account.

The Federal Trade Commission data for 2024 states consumers reported losing more than $12.5 billion to fraud. Imposter scams were the most commonly reported, accounting for $2.95 billion in losses.

This is a real threat – it’s critical that you know how to protect yourself.

How to spot a bank phone call scam

• The scammer claims to be calling from Signature Bank and the caller ID may look like it’s coming from Signature Bank. Scammers can spoof phone numbers to look like official bank numbers!
• The scammer claims fraud on your account. It’s likely that the scammer will claim there was suspicious activity on your account or unauthorized access to your online banking account. In addition, the scammer may even manufacture a fraudulent “pending charge” to make the scam seem legitimate.
• Fraudsters know that many people will act quickly if they receive a call claiming there’s an issue with their bank account.
• The scammer asks for your personal information and password. The scammer will use their fabricated fraud claims to ask you for your online banking sign-in credentials. They might ask you for your password or security questions and answers. This is a red flag and should alert you it’s a scam.
• The scammer uses your information to take control of your account. It’s important that you never tell anyone your online or mobile banking sign-in information. Scammers can use this information to hack into your account and reset your sign-in credentials.

What to do next

• Monitor your account activity daily. It is a good idea to monitor your bank accounts on a regular basis, and even more frequently if you receive a suspicious call like this. 
• Hang up and call us directly. If you receive a suspicious or unexpected call from someone claiming to be with the bank, hang up immediately and call Signature Bank directly at 773-467-5600 as soon as you can.

We will never ask you for your password!

Know that if a Signature Bank representative calls you, we will never ask for your password. If you call the bank directly, our representatives may ask you questions necessary to verify your identity. This is to ensure that we are talking directly to our customers and not an imposter.

Why growing businesses are turning to Finrails AP™

As your business grows, are your financial operations keeping up? If your team is still handling payments manually, it might be time to consider automation. Streamlining payment workflows frees up your team to focus on strategic priorities, reduces errors and ensures your financial technology supports long-term growth.

The hidden costs of manual payment systems

If your company still relies on manual payment processes, your accounts payable team may be feeling the strain—especially as transaction volumes increase. Manual systems aren’t just time-consuming; they’re more prone to errors, lack real-time visibility into cash flow and make it harder to track payments efficiently.

They’re also a security risk. Check fraud is on the rise, with alarming financial consequences. According to the 2024 AFP Payments Fraud and Control Survey, the percentage of organizations reporting fraud attempts jumped from 65% in 2022 to 80% in 2023. Checks remain the most vulnerable payment method, with 65% of businesses experiencing check fraud activity.

Cybercriminals are getting smarter, making it critical for businesses to have automated systems that can detect and prevent fraud before it happens.

The benefits of an automated payment platform

Switching to an automated payment system can significantly cut down the time and cost of processing transactions while improving accuracy and security. It also makes life easier for both employees and vendors by ensuring payments are processed quickly and reliably.

Here’s what an automated payment platform can do for your business:

1. Reduce payment errors by standardizing processes, eliminating manual data entry and flagging discrepancies in real time.
2. Gain real-time cash flow insights with centralized data, giving you instant access to payment details and analytics.
3. Ensure compliance with tax and financial regulations through built-in monitoring tools and detailed audit trails.
4. Scale seamlessly as your company grows—your payment system adapts to increased demand without causing delays.
5. Improve vendor and employee experience with faster, more accurate payments and user-friendly dashboards.
6. Detect and prevent fraud with features like Positive Pay to flag suspicious checks or unauthorized ACH transactions.

How Finrails AP™ helped a leading building materials supplier

Burrow’s, a trusted supplier of building materials and accessories for professional contractors, faced a major payment challenge: their manual check process was time-consuming, and their banking platform didn’t allow them to send ACH transactions separately.

By implementing Finrails AP, they streamlined payments with automated ACH transactions, gained access to a virtual card option with rebate benefits and improved fraud protection with dual authorization for added security.

Why choose Finrails AP?

Finrails AP, powered by Signature Bank, is a simple, seamless and secure automated payment platform designed to eliminate inefficiencies and improve financial control. Plus, businesses get access to Signature Bank’s treasury management experts for guidance along the way.

With Finrails AP, you can:

• Eliminate manual data entry
• End reliance on paper transactions
• Streamline workflow approvals
• Customize approval rules and routing
• Improve payment visibility
• Reduce processing time
• Improve cash flow
• Gain efficiency with seamless ERP integration
• Improve vendor relationships
• Generate revenue through virtual card payments to vendors
• Streamline AP team responsibilities
• Make digital payments for speed and increased security
• Make fast, secure payments from a single access point

Ready to move beyond manual payments? Discover how Finrails AP can simplify your accounts payable process today. Learn more here or contact Jason Chess at jchess@signaturebank.bank or 847.268.1032.

Every day, thousands of people fall victim to fraudulent emails, texts, and calls from scammers pretending to be their bank. The Federal Trade Commission’s report on fraud estimates that American consumers lost a staggering $10 billion to phishing scams and other fraud in 2023—an increase of 13.6% over 2022!

It’s time to put scammers in their place.

Fraudsters aren’t so scary when you know what to look for. And at Signature Bank Chicago, we’re committed to helping you spot them as an extra layer of protection for your account. We’ve joined with the American Bankers Association and banks across the country in a nationwide effort to fight phishing—one scam at a time.

We want every bank customer to become a pro at spotting a phishing scam—and stop bank impostors in their tracks. It starts with these four words: Banks Never Ask That. Because when you know something sounds suspicious, you’re less likely to be fooled.

These four phishing scams are full of red flags:

• Text Message: If you receive a text message from someone claiming to be your bank asking you to sign in, or offer up your personal information, it’s a scam. Banks Never Ask That.
• Email: Watch out for emails that ask you to click a suspicious link or provide personal information. The sender may claim to be someone from your bank, but it’s a scam. Banks Never Ask That.
• Phone Call: Would your bank ever call you to verify your account number? No! Banks Never Ask That. If ever in doubt that the caller is legitimate, just hang up and call the bank directly at a number you trust.
• Payment Apps: Beware of text messages from someone claiming to be your bank saying your account has been hacked. The scammer may ask you to send money to a new account they’ve created for you, but that’s a scam! Banks Never Ask That.

You’ve probably seen some of these scams before. But that doesn’t stop a scammer from trying. For tips, videos, and an interactive quiz to help you keep phishing criminals at bay, visit www.BanksNeverAskThat.com. And be sure to share the webpage with your friends and family.

In today’s digital age, fraud is an ever-present threat to businesses of all sizes. In addition to financial losses, fraud can lead to reputational damage, regulatory fines and legal consequences and operational disruption. 

Unfortunately, it’s no longer a matter of “if” you’ll be affected by fraud, but “when.” According to the 2025 AFP Payments Fraud and Control Survey Report, 79% of organizations were victims of payments fraud attacks or attempted attacks in 2024. This spans all types of businesses, from large corporations to small nonprofits, underscoring the necessity for every business to implement comprehensive fraud protection strategies.

Banks employ a variety of robust protections to fight fraud, but businesses must also invest in their own anti-fraud efforts. This dual approach is essential because vulnerabilities unique to the business’s operations can still pose significant risks that banks’ measures alone cannot fully mitigate. 

Automate electronic payments 

Check fraud affected 63% of surveyed businesses in 2024. The U.S. Postal Service has become a common target for check fraud with checks being intercepted and altered by fraudsters and then deposited via mobile apps or cashed by unsuspecting bank employees. If you can switch from checks to electronic payments, here are a couple options: 

• Automated Clearing House (ACH):  is a way to electronically move money between banks. 
• Automated Account Payable solutions: Leveraging a payment app, such as Finrails AP from Signature Bank, offering one central, secure platform where authorized users can securely manage and monitor payments of all types, including virtual card payments to reduce the use of paper checks. 

If you must use checks, ensure they are traceable. Positive Pay is a service offered by banks, which flags and reports suspicious checks before they are paid. It is alarmingly underused by businesses, thinking they have the same fraud protections as consumers, which they do not. 

Enhance digital controls 

Fraud is often a result of employees or customers sending sensitive information through unsecured channels. Ensure payments and information are secure by using digital controls such as:

• Strong passwords and secure links: Ensure that sensitive information is sent securely and passwords are strong and frequently updated
• Encryption: converting data into a secure format and ensuring it remains encrypted during transmission to prevent unauthorized access  
• Multi-factor authentication and dual controls: requiring two forms of authentication, such as a password and a one-time code sent to an email or mobile device (yes, this can be annoying, but it’s effective) 
• Biometric authentication: using biological traits, such as fingerprints or facial recognition, to verify identity 

Leverage real-time monitoring and alerts

Real-time monitoring systems can track transactions and other activities as they happen, flagging suspicious behavior immediately. These systems often use predefined rules and machine learning models to evaluate the legitimacy of each transaction. When potential fraud is detected, automated alerts are sent to the relevant personnel, enabling a quick response to mitigate any potential damage.

Educate employees 

While technology and data play a critical role in fraud prevention, human awareness remains vital. Educating staff on the latest fraud tactics and the importance of adhering to security protocols can significantly reduce the risk of insider fraud and phishing attacks. Employees should be on the lookout for fraudulent behavior and know what to do if they spot potential fraud. 

When fraud occurs, prompt action is critical. When unauthorized transactions happen, an organization’s bank should be notified immediately because liability shifts to the business after just 24 hours. This will also help prevent further fraudulent transactions.

Technology is essential for businesses to protect themselves from fraud threats 

Fraud poses a significant financial threat that businesses must proactively address. By implementing multiple layers of protection—ranging from enhanced cybersecurity and employee education to digital payment solutions and vigilant monitoring—businesses can significantly reduce their vulnerability to fraud. Preparing for the inevitability of fraud with a robust prevention plan is essential to safeguarding your business’s financial health and integrity.

About Signature Bank 

Signature Bank is Chicago’s business bank, focused exclusively on serving the needs of privately owned businesses and their owners. If you’re looking to partner with a relationship-driven bank in the fight against fraud, visit Signature Bank online at www.signaturebank.bank or contact Jason Chess at jchess@signaturebank.bank or (847) 268-1032.