The holiday season is a time of opportunity and risk. As businesses push for year-end growth, fraudsters are doing the same. Industry research from the Association of Certified Fraud Examiners (ACFE) shows that fraud attempts surge by nearly 20% during the holiday season, from Thanksgiving through New Year’s.¹ This spike is fueled by increased payment volumes, seasonal staffing, and distracted teams. This year, the threat landscape is more complex than ever. 

What’s New This Season?

Real-Time Exploits

The rise of instant payment systems and faster settlement windows is a double-edged sword. While businesses benefit from speed, criminals exploit it to move stolen funds before detection tools can react. Once the money is gone, recovery becomes nearly impossible, making real-time monitoring and proactive controls critical.

Supply Chain Vulnerabilities

Global shipping delays and last-minute vendor changes create urgency, an environment fraudsters thrive in. By impersonating suppliers and requesting altered payment instructions, criminals execute vendor impersonation schemes that can drain accounts and disrupt operations.

Social Engineering and Business Email Compromise

Fraudsters are increasingly using sophisticated social engineering tactics to trick employees into authorizing fraudulent payments. These schemes often involve spoofed emails or urgent requests that bypass normal verification processes.

Why It Matters

Fraud isn’t just a financial hit. It disrupts operations, damages vendor trust and erodes customer confidence. Common schemes like ACH fraud, account takeovers and check fraud are becoming more sophisticated, targeting high-value transfers and exploiting weak points in payment workflows. Businesses need layered defenses and dual control authorization to stay ahead.

Texas Capital’s Holiday Fraud Defense

Texas Capital offers a comprehensive suite of fraud-prevention tools designed to protect businesses during this high-risk season. Here’s how each solution addresses specific threats:

1. ACH Blocks and Filters

Fraud Issue: Criminals often attempt unauthorized ACH debits or credits by exploiting account information.

Solution Impact: ACH Blocks prevent all ACH transactions unless explicitly authorized, while ACH Filters allow businesses to define acceptable transaction criteria. These controls significantly reduce the risk of unauthorized electronic transfers.

2. ACH Positive Pay

Fraud Issue: ACH fraud can occur when fraudulent transactions mimic legitimate vendor payments.

Solution Impact: ACH Positive Pay compares incoming ACH transactions against a list of approved vendors and amounts. Any discrepancy triggers an alert, giving businesses the power to reject suspicious activity before funds leave the account.

3. Check Positive Pay

Fraud Issue: Check fraud remains a persistent threat, especially during the holidays when payment volumes spike. Criminals alter or counterfeit checks to divert funds.

Solution Impact: Check Positive Pay matches checks presented for payment against a list of authorized checks provided by the business. Any mismatch is flagged for review, preventing fraudulent checks from clearing.

4. Reverse Positive Pay

Fraud Issue: Businesses sometimes need flexibility in reviewing checks after they’ve been presented for payment.

Solution Impact: Reverse Positive Pay allows companies to review checks before final settlement, adding an extra layer of control to catch suspicious items before funds are released.

5. Check Debit Blocks

Fraud Issue: Unauthorized checks drawn on your account can result in significant financial loss.

Solution Impact: This feature ensures that no checks can clear on accounts that are not authorized to issue them. This proactive measure effectively blocks fraudulent check activity and safeguards your funds.

The Bottom Line

Holiday cheer should never come at the cost of security. Fraudsters are innovating, but so are we. By combining ACH Blocks and Filters, ACH Positive Pay, Check Positive Pay, Reverse Positive Pay and Check Debit Blocks, Texas Capital helps businesses safeguard their operations and start the new year strong.

Don’t wait until fraud strikes. Partner with Texas Capital today to protect your business during the busiest, and riskiest, season of the year.