Fradulent Treasury Checks
August 18, 1997
Circular No. 10971

To All Depository Institutions in the Second Federal Reserve District:

A number of fraudulent Treasury checks have recently been presented to this Bank. These checks have taken two different forms.

In the first type, the checks state that they are drawn by "Financial Management Service, United States Treasury. There is a seal on the left side of the check, which reads: "Treasury * Service * Management * Financial." The seal contains a picture of the scales of justice and a key similar to that on the Financial Management Service's seal. These checks do not contain a water mark or a picture of the Statue of Liberty (which appear on legitimate checks). They are on green paper stock.

The other fraudulent checks state that they are drawn by "United States Treasury, Money Management Account." A similar seal appears on these checks, which reads "Treasury" on the top and "United States Mint" on the bottom. These checks also do not contain a water mark or a picture of the Statue of Liberty and are on blue or pink paper stock.

The earliest fraudulent checks of which we are aware are dated in April 1997. The checks have been drawn payable to different individuals and have been deposited in banks throughout the Second Federal Reserve District. The checks have been drawn in amounts ranging from $3,000 to $8,000 and are MICR-encoded.

We have been forwarding all such checks to the U.S. Secret Service and debiting the depositary bank accordingly. If you receive such a check, we suggest that you (a) inform your depositor that the check is not a valid instrument, and (b) contact your local Secret Service office.

If you have any questions on this matter, please contact George Ferraro or Kelly Horne of this Bank's Government Check area.