Fraud in banking transactions(Banks), especially wire transfers, have become an increasingly serious issue in regard to unrecoverable loss of funds and overall risk. Bloomberg Business reports that cyber-criminals steal as much as $1 billion a year this way.
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Automated Clearing House (ACH) transactions utilize a federally regulated electronic network and is used by banks to send and receive bill payments, e-checks, direct deposit statements and other types of transfers. While “federally regulated” might give a banking customer comfort for their financial transactions, the majority understand an ACH transaction has increasingly become riskier, especially in recent years.
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In response to this growing fraud, the Bank Shot app was developed in 2015 by 30-year industry professionals, Glenn F. Drake and Bernardine W. Drake, who had a long history with earnest money in their real estate business. Bank Shot enables their clients and customers to utilize safe and secure payment solutions. Bank Shot built their patented mobile app, for iPhone and Android, with a compliance-first mentality, focused on cyber security and utilizing its one of a kind stoplight technology to assure the depositor that their funds will be safely transferred, and puts the depositor in control of the process.
“There are many mobile earnest money check solutions that are an ACH,” says Glenn Drake, Founder and Co-Developer of Bank Shot. “There are numerous reasons we felt like an ACH is not the solution for our Bank Shot customers, since we wanted to avoid mandating information such as an individual’s bank account, account number, social security number, and other private information. We instead developed our Stop Light technology, giving our client/customer the ability to Accept, Hold or Reject a check, therefore placing them in control of their transaction.”
Bank Shot utilizes a remote deposit process allowing for the ability to deposit items into multiple accounts as well as multiple financial institutions utilizing a secure portal. Bank Shot is a check deposit, not an ACH process.
Government officials have repeatedly warned banks and businesses to the growing and costly trend of funds transfer fraud, in which cyber-criminals employ phishing emails, compromised websites, malware, and other tools to steal bank login credentials, then transfer money out of the victim’s bank account and into the thieves’ account—often, at a bank halfway around the world, where the funds cannot be recovered.
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