District reports check‑fraud loss; board authorizes opening a new checking account

District finance staff notified the board that Bank of Odessa alerted the district to suspicious activity after two counterfeit checks — total $3,450.66 — were cashed against the district’s checking account. Staff said the bank scanned the presented ID and collected Social Security and birth date information; the checks were cashed at two banks in quick succession, which triggered the bank’s fraud alert.

Staff said the likely attack involved reproduction of check stock and that the checks were within 30 check numbers of a recently issued voided check for a vendor. The district filed police reports with Jackson and Lafayette counties and contacted its insurance carrier. Staff said the insurer recommended opening a new checking account; staff also asked the board to approve opening a new account and closing the old account.

Board members pressed the bank’s response and liability and asked whether the institution would implement positive‑pay or other fraud prevention tools. Staff said the bank had followed teller procedures (ID scan and signature check) and that the bank indicated it would review positive‑pay options, but that staff was not assured of immediate bank‑level remedies. Because payroll and automatic deposits are linked to the account, staff said account changes will be a staged transition to avoid disruption to payroll and grant deposits.

The board approved a motion to open a new checking account (and close the old account) so district staff can protect district funds while they work through bank procedures, police reports and insurance recovery steps. Staff said they will move as many payments as possible to ACH and create a separate, limited account for any remaining paper checks to limit exposure.