Have you ever heard of check washing?
It’s a real thing. A check is written, mailed to the intended recipient, but never received. However, the check clears the bank account, often payable to someone else and/or in a much larger amount.
Checks, often stolen from mailboxes or directly from postal workers, are “washed” in chemicals to remove the ink and change the payee and/or amount. Alternatively scammers will use copiers or scanners to print fake copies of a check. These fraudulent checks are deposited and money is stolen from a bank account.
There are ways to protect your PTA funds from check washing:
- Use a pen that contains indelible black gel ink to write your checks.
- Don’t leave blank spaces in the payee or amount lines of checks you write.
- Opt for checks with security features. These features might include a watermark, microprinting, or the use of special inks.
- Deliver your PTA check in person to the payee.
- It’s recommended to drop your mail in a collection box inside a post office, or hand it to a postal worker.
- Send your envelope via registered mail, so that you may track the delivery of your envelope.
- Before you mail a check, send an email to the intended recipient letting them know that the check is in the mail, and ask that they confirm receipt of the check. Ask them to cash your check as soon as possible.
- Be especially vigilant at the end of term when checks are mailed, and a new treasurer will take over. The outgoing treasurer will want to make sure that the final checks written clear the account when reconciling the June bank statement and preparing the Annual Financial Report. Thieves are aware that PTAs transition officers over the summer, and they’re hoping that we’re not paying attention!
- Consider making payments using e-check, ACH automatic payments and other electronic and/or mobile payments. Remember, PTAs should only use business-to-business electronic payment systems, not person-to-person (i.e. Venmo) apps.
- Use online banking to review copies of your checks to ensure they were not altered.
- If you still receive paid checks back from the bank, shred them – don’t just throw them in the trash.
- Regularly review your bank activity and statements for errors.
What do you do if your PTA is the victim of check washing?
File a report immediately with:
- The United States Postal Inspection Service at https://www.uspis.gov/report or call 1-877-876-2455.
- Your local police department.
- Your financial institution; you may need to freeze or close the account.
- Your district PTA officers.
- AIM, our insurance provider.
- Follow procedures detailed in the Insurance Guide to file a claim with AIM Insurance
- Make sure that your PTA is following the insurance requirements of a non-signer opening, reviewing, and signing the monthly bank statement, a non-check signer reviewing the monthly bank reconciliation, and completion of an Annual Financial Review. Also make sure that these activities are documented in monthly minutes. In the event that a claim is filed with AIM, this is how you’ll prove that you are fulfilling AIM’s requirements.