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Two fraudulent checks prompt Oak Grove to open new checking account and tighten controls
Summary
After two high‑quality counterfeit checks totaling $3,450.66 were cashed locally, the board approved opening a new checking account, discussed positive‑pay options and moving vendors to ACH to reduce paper‑check exposure.
District finance staff told trustees that two fraudulent checks were cashed at local banks for a total of $3,450.66. The district filed police reports in Jackson and Lafayette counties after banks provided copies of the ID used to cash the checks and other transaction details.
Administration described follow‑up steps: contacting the insurance carrier (fraud protection with a $1,000 deductible), pursuing bank liability and implementing risk‑mitigation measures such as moving vendors to ACH and evaluating positive‑pay services. "We were notified by another school about positive pay, which is a fraud software," a staff member said; the bank said it would review positive‑pay options but did not commit to immediate changes.
Staff recommended opening a new checking account (and eventually closing the old account) to protect payroll and grant deposits during the transition. Trustees debated operational tradeoffs and customer‑service burdens of a full bank switch versus creating a small «petty/check» account reserved for paper checks. The board approved a motion to open a new checking account and close the old account, and asked staff to gather competitive bank proposals and bring minutes and documentation for formal action.
Administration will continue payroll operations during account transitions and work with the bank and insurance carrier to recoup funds where possible. Trustees requested additional documentation about timelines, bank liabilities and bench‑marked service fees before any permanent bank change.
