Fraudsters are always searching for new and improved ways to target companies and the sensitive information they store. From Social Security numbers to bank account data to birthdays, it’s all ripe for the taking. While many businesses may attempt to protect themselves from external hacks, they could be missing a more frequent source of breaches: people within the organization.
According to Verizon’s 2015 “Data Breach Investigations Report,” around 50 percent of all events that compromise important materials and confidentiality are caused by employees themselves. Although 30 percent of that is due to worker negligence, the other 20 percent was caused by internal misuse – meaning workers are using company-owned information for their own benefit.
Organizations need to know their data and funds are protected at all times. Partners like Cachet offer a crime bond for this purpose. Let’s take a closer look at the benefits of this unique offering:
Safer ACH transmittal
Companies know data at rest is always at risk, but so are active materials. One pressing example is the information and funds transmitted during ACH processing. This method of money transfer – specifically for worker payroll – has gained serious traction over the years. In fact, 82 percent of American employees are paid using ACH for direct deposit and a large number is very satisfied with this method, according to NACHA. Yet, ACH is subject to data breaches just like any other form of information transfer.
“Cachet offers a $50 million crime bond as ACH insurance for companies.”
The introduction of a crime bond gives business owners the reassurance they need to entrust in the ACH process Cachet provides a $50 million guarantee to protect companies during incidents involving external or internal hacks. With this support, organizations can improve their trust in their third-party processing provider, and more fully understand the lengths their partner is willing to go to secure their hard-earned money.
A form of insurance
Although they’re never planned, problems with moving ACH funds from one account to another do occur. Companies want to know their money is covered, however. The crime bond acts as a guarantee of just that. When the funds are in Cachet’s possession, they are insured. The crime bond itself covers any fraudulent activity that may happen during the transmittal. As a result, all funds up to a certain amount – $50 million – is safe. In other words, Cachet will replace funds lost to security concerns up to a certain amount, as long as the situation took place when Cachet was in possession of the money.
This level of support increases a third-party processor’s credibility, making the organization more competitive in its industry and helping companies keep their expenses as low as possible.
It’s common for businesses to be concerned with the potential risks that come with ACH processing. Leaders worry about both internal and external breaches and what those incidents mean for company and employee funds. Working with a partner like Cachet ensures that money will never be uninsured. Cachet offers organizations support in the form of a crime bond, covering any suspicious activity that occurs when the funds are in Cachet’s hands.
To learn more about the elements your organization should consider when choosing an ACH processor, download Cachet’s whitepaper.