Accredited ACH Professional (AAP) Practice Exam

Which aspect is critical for mitigating fraud risk in ACH transactions?

1. Data encryption

2. System user training

3. Effective control measures

4. Regular audits

The correct answer is: Effective control measures

Mitigating fraud risk in ACH transactions requires the implementation of effective control measures, as these directly address the processes and protocols established to identify and manage risk throughout the transaction lifecycle. Effective control measures include features like dual control for transaction approvals, transaction limits, and monitoring for unusual transaction patterns. By having robust controls in place, organizations can prevent unauthorized transactions and identify potential fraud before it occurs. While data encryption, system user training, and regular audits are all important components of a comprehensive fraud prevention strategy, they support the broader framework established by effective control measures. Data encryption helps protect sensitive information from being intercepted, user training ensures that personnel are aware of fraud risks and protocols, and regular audits help assess the effectiveness of existing controls. However, without effective control measures as a foundation, the other components may be less effective in preventing fraud.