Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Financial Fraud And Payments topic
No spam. Unsubscribe anytime.
Board hears report of repeated payroll-style check scams; district to reduce paper checks
Summary
Board members described multiple local attempts to cash fraudulent checks bearing district branding and discussed bank controls and a plan to reduce use of paper checks in favor of ACH transfers.
Hernando County School Board members reported multiple fraudulent check attempts that used the Hernando School District logo and appeared to mimic payroll checks.
Board members said several incidents have been stopped by the district’s bank because of pre-authorized check lists and reconciliation processes. "We've had 5 or 6 of them this month, using different names ... and they've all been stopped," a board member said. Another attendee, Abigail Panetta, told the board she received a $1,500 check that used the district logo and a signature and described the standard scam pattern of asking recipients to return a portion of the funds.
District staff explained the bank reconciles presented checks against the district's authorized list and rejects items that are not on that list. Board members said they will move purchasing and finance away from paper checks where practical and use ACH transfers to reduce exposure.
Board members also said they had forwarded email copies and phone numbers tied to one incident to the district’s finance and procurement staff and encouraged reporting to law enforcement when identifying traceable information.
Ending
Staff told the board they are working with purchasing and finance to reduce use of paper checks and that current bank controls have prevented fraudulent cashing so far.
