The Nacha fraud monitoring updates are fast approaching, and most banks are hearing very different messages about what they mean. Some are being told they’re already covered and don’t need to change anything. Others are hearing warnings about major gaps, heightened liability, or the need for entirely new controls. In between, many fraud, payments, and compliance teams are left trying to translate broad guidance into something they can actually execute and explain.

Financial institutions must move beyond single-point identity checks and outdated OTPs toward an entity-centric, device-bound, behavior-aware authentication model that uses holistic signals, devices, behavior, identity, and consortium data, to detect coordinated fraud and build deeper trust.

Banks, fintechs, and payment providers need to collaborate safely under strong legal and regulatory frameworks. This will enable consortium members to exchange real-time insights into first-party, counterparty, and mule activity; helping stop fraud before funds move.