CUNA Mutual Group Risk Alert: ACH Booster Payment Fraud Impacts More Credit Unions

Originating ACH debits is a significant risk especially when ACH booster payments are introduced on credit union issued credit cards. Booster payments can be made through online banking, services offered by card processors, or other payment service providers (e.g., pay by phone service). Members use booster payments to inflate their credit limit and cause losses greater than the card's credit limit. The member uses the available credit limit created by the ACH booster payment before the payment is returned and will repeat this process multiple times until the fraud is discovered. Booster payments continue to impact credit unions with losses far greater than the established credit limits.

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