Resources for Nonprofits
Strategies to Combat Against Check Fraud
Jen Kelsch, Chief Financial Officer, GAR Foundation
Fraud schemes involving checking accounts have become more common and sophisticated in recent years. According to the Financial Crimes Enforcement Network (FinCEN), banks observed an 84% increase in check fraud from 2021 to 2022, reflecting a broader trend of rising fraud tactics. This increase in check fraud is likely due, in part, to enhanced security measures around digital payments, which have driven criminals to return to this more traditional method.
More recently, the 2024 AFP® Payments Fraud and Control Survey Report cites checks as the payment method most vulnerable to fraud, with 65% of organizations reporting check fraud activity.
If you fall victim to check fraud, recovering your money from the bank is unlikely. To protect yourself and minimize potential losses, consider the following measures:
- Check your bank's Fraud Protection services, which can include things like Positive Pay. While these services come with a fee, they can prevent larger losses.
- Using a third-party bill payment service (e.g., your bank’s or bill.com) can safeguard your banking information from exposure to vendors, employees, and potential check interceptors.
- Monitor your account for any unusual transactions, as fraudsters often start with small amounts and then quickly escalate the amount of each transaction.
- Regularly check your account and set up text or email alerts for transaction updates.
If you suspect fraud, contact your bank immediately and close your account.
In response to this increasingly problematic trend, GAR Foundation will begin to require ACH deposits for all grant award payments in 2025. We will provide more information about this transition in the near future.
Resource Spotlights
Workshop Spotlight
2024 Civic Leadership Summit - AI for Social Impact
Is your nonprofit on top of Artificial Intelligence? On October 24th, join Business Volunteers Unlimited (BVU) to learn from world-class experts on practical and ethical AI usage for mission advancement.
We are thrilled to share that BVU has offered to extend its member discount to all GAR grantees! Simply select "I am a BVU Member" during registration for a $50 savings per person.
Host: Business Volunteers Unlimited (BVU)
Dates: Thursday, October 24, 2024
Time: 8:00 am - 12:00 pm
Location: Case Western Reserve University (Tinkham Veale University Center, 11038 Bellflower Rd, Cleveland, OH, 44106)
Cost: $115 for GAR grantees (select "I am a BVU Member")
*Note: Seats are filling up fast, so don't delay if you're interested in attending!
Consultant Spotlight
Becky Wolfe - Leadership & Health Coach
Becky Wolfe offers leadership coaching for individuals and groups. Her mission is to empower women and men to be healthy and confident through high quality coaching. Benefits include scalable, relatable tools that can be used and taught to others on your team for improved communication and efficiency.
Tool Spotlight
GrantStation
Get the tools and information you need to secure your funding this year and beyond. GrantStation offers nonprofit organizations, educational institutions, and government agencies the opportunity to identify potential funding sources for their programs or projects as well as resources to mentor these organizations through the grantseeking process.
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All resources shared are for informational purposes only. GAR Foundation bears no responsibility for the content found on external sites. Contact the external site for answers to questions regarding its content.