MENDOCINO, Calif. (KGO) — What if you stopped at an ATM for extra cash and discovered thousands of dollars missing from your account?
It happened to a Mendocino couple who found out someone had used their checking account to pay bills and printed fake checks.
How can that happen? 7 On Your Side got some answers and helped get their money back.
The couple was shocked to discover almost $18,000 missing from their checking account. Their statement shows three fake checks and 17 fraudulent charges. The bank didn’t say how that happened — but we found out how scammers might have pulled this off.
Nona Smith and her husband Art were enjoying a peaceful retirement in the seaside town of Mendocino — until scammers upended their lives.
“It was definitely a mess. And it disrupted our lives,” said Nona. “It was a terrible experience and made me very uncomfortable and mistrustful. My husband is…
PROCUREMENT & EXPENDITURE (STOPPING KICKBACKS)
Procurement fraud usually involves inflated invoices or “fictitious” vendors.
- The Three-Way Match: Never pay an invoice unless you have matched the Purchase Order (PO), the Delivery Note (signed), and the Supplier Invoice.
- Vendor Master File Review: Review your vendor list annually. Look for suppliers with the same bank details or physical addresses as your employees.
- Dual Authorization: Implement a “Two-to-Sign” rule for all EFT payments above a certain threshold (e.g., R5,000).
- No “Cashing” of Checks: If you still use physical checks, strictly prohibit “Cash” as a payee and store blank checks in a dual-lock safe.