So, it can happen to us too.........
Check fraud is becoming a common fraudulent transaction among churches, governments and many other businesses too. Last month on June 19th and June 25th two (counterfeit) checks with our signatures digitized on the checks cleared our Woodlawn Park
checking account both for the amount of $9,075.00 each. They were deposited via a mobile transaction into the Navy Federal Credit Union bank in Virginia. When our CPA was balancing the books for the month of June, he reached out to me immediately. I notified our bank, PNC, and they started the dispute process. The rule is as long as we catch the check fraud within 45-60 days then we will get reimbursed the full amount. We caught it quick enough to be eligible for repayment. It could take as long
as 2-6 months to see the repayment.
Moving forward, we have opted to begin a security program called reverse positive pay on our accounts both that cover Check and ACH fraud as well. We have also placed additional controls in the way we sign and mail our checks out.
We are not sure where the breach occurred but it more than likely was a check that got intercepted somewhere along the line.
I'm very appreciative that we have an outstanding CPA that is on the ball and very attentive to details. I have always felt
like we go over and beyond when it comes to signing our checks requiring two signatures, etc. but as the bank says this can happen to anyone, any business, any government agency at anytime. Now that we have placed the additional security measure on our accounts this should be a moot point in the future.
