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…
MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.