The "Guide for Organizational Representative Payees" explains how representative payees must title bank accounts holding beneficiary funds. Keep in mind that proper account titling will ensure Federal Deposit Insurance Corporation (FDIC) protection of up to $250,000 per depositor in an FDIC insured bank.
SSA has received reports from representative payees that some beneficiaries have gained access to bank accounts even though the accounts were titled correctly. To prevent beneficiaries from making unauthorized telephone and internet transactions, do not reveal their bank account numbers to them.
Occasionally organizations report internal fraud or check fraud to SSA. Fraud might take the form of embezzlement, forged signatures on checks, theft of check stock, and forged check endorsements. We recommend that you work with your bank to help prevent fraud. You may be able to arrange for your bank to check for two signatures whenever a check exceeding a certain amount is presented for payment. Your bank should also be able to advise you about check security features and any fraud prevention programs it has. For example, if a bank has a "positive pay program," it can compare a check number and amount to a list of check numbers and amounts that your organization provides. With a "positive payee program," if you identify the payee of a check you issue, the bank will verify if the payee information is correct when the check is presented.