A Warning from Grace Lutheran in Kingman: Protecting Churches from Check Fraud
Grace Lutheran Church in Kingman recently discovered that several contribution checks mailed to the congregation had been stolen and cashed by someone else. Police, the U.S. Postal Service, and fraud departments at several banks are involved.
Grace’s experience is an important reminder: churches and their members can be targets of check theft and other financial fraud. Congregations should review their financial safeguards, and donors should confirm that mailed gifts reach the intended ministry.
How Grace discovered the missing gifts
In July, Grace sent midyear contribution statements so members could review their giving during the first half of the year. One member noticed that two checks she had written were missing from her statement.
After further investigation, Grace learned that the checks had been cashed—but the congregation had not received or deposited them. The church then asked other members to review their statements carefully. Three more members found checks that had been cashed by the same individual without reaching Grace.
Most of the affected gifts had been sent through online bill-pay services. Because the banks generated and mailed those checks, the members had not seen the endorsements on the back until they investigated the missing contributions.
Grace is thankful that its midyear statements brought the discrepancies to light. Without that routine communication, the missing gifts might have gone unnoticed much longer.
Steps congregations can take
Grace encourages other churches to consider sending contribution statements more than once a year. Midyear or quarterly statements give donors an opportunity to identify missing or incorrectly recorded gifts while records and transactions are still relatively recent.
Congregations can also strengthen their safeguards by:
Depositing incoming checks promptly and keeping undeposited funds secured
Limiting access to incoming mail, checks, financial records, and banking credentials
Having more than one person involved in receiving, recording, depositing, and reconciling funds
Reconciling bank and contribution records regularly and investigating discrepancies promptly
Using dual approval for payments and changes to vendors or payment instructions
Confirming unusual financial requests through a trusted phone number or a second communication method
Training staff and volunteers to recognize phishing, altered-payment requests, counterfeit checks, and other fraud
Reviewing fraud controls regularly with the congregation’s bank, insurer, treasurer, and finance committee
Offering secure electronic-giving options while maintaining strong account protections
Congregations should also avoid publishing sensitive details about their mail handling, deposit schedule, banking procedures, or security controls.
Steps donors can take
Members who mail checks directly—or use a bank’s online bill-pay service that generates paper checks—should compare their bank records with the contribution statements issued by their congregation.
If a check has cleared but does not appear on the church’s statement, contact both the church and the bank promptly. Ask the bank for an image of the front and back of the negotiated check and follow its instructions for reporting fraud.
The U.S. Postal Inspection Service advises people to retrieve delivered mail promptly, avoid leaving it in a mailbox overnight, and place outgoing mail inside a post office or deposit it before a collection box’s final pickup. It also recommends using permanent black ink and leaving no blank spaces on a check’s payee or amount lines. Review Postal Inspection Service guidance on check washing and mail security.
If fraud is suspected
Act promptly, preserve relevant records, and contact:
The financial institution involved
Local law enforcement
The U.S. Postal Inspection Service when mail theft may be involved, at 1-877-876-2455 or through its online reporting system
The congregation’s insurer and appropriate synod staff, as applicable
A federal analysis found mail-theft-related check fraud reports connected to every state, with stolen checks altered, fraudulently signed, or used to create counterfeits. Financial authorities also warn that information taken from stolen mail may be used in additional fraud schemes. Learn more from the Financial Crimes Enforcement Network.
Stewardship rooted in care
Financial safeguards are an expression of faithful stewardship. The gifts entrusted to congregations support worship, service, pastoral care, and ministry with neighbors. Protecting those gifts—and responding compassionately and transparently when something goes wrong—is part of caring for the people and ministries God has placed in our hands.
The Grand Canyon Synod thanks the people of Grace Lutheran Church for sharing their experience so other congregations can review their practices and remain alert.
