Car Club Paypal Embezzlement worries

[Howling4Ever]

I am the treasurer of a car club.  The vice president of our club just set our bank account up  with PayPal and did not inform me or any other officer in the club.  He did not attend the monthly meeting last night.

What keeps him from transferring funds from our bank account into the PayPal account and then transferring those funds somewhere else?  How much can he steal at a time?

Is there a way to keep the flow of money only going one way?  It sounds nice to take memberships and event fees in this way but I am worried about the potential for abuse.  I have had the misfortune of meeting quite a few ethically challenged people through this club and am very concerned about this development.

Sincerely,

H4E

[DPCreations]

Who gave the VP the authority to manage your club finances?

What rules does your club have for security of your finances.

Whoever has control of the bank funds and PayPal has total control of the finances.  You really should check into ways to manage your club's finances and urgently audit financials sytems NOW.

[sharpiemarker]

Without some kind of oversight or limited access, your VP can transfer any amount to another PayPal account.  PayPal can limit or entirely disable on an account if there is suspicious activity but it may not catch whether activity can be construed specifically as embezzlement.  If it is possible for you to gain access to the account and upgrade to a business account to utilize the Manage Users, you can limit the type of activities allowed: https://www.paypal.com/selfhelp/article/FAQ1605

Even with this, someone trusted has to have main access to the PayPal account's full capabilities to monitor and conduct above board activities.

You can add and confirm additional email addresses to receive notifications of all activity.

You can also speak with a PayPal rep about your concerns here: https://www.paypal.com/selfhelp/home

[lancelotme]

Paypal sends out email whenever there is activity in the Paypal account,like receiving payment,transferring fund,so whose email is registered with Paypal ? 

If like the prior poster said,you can add more emails to receive notifcations,then add the auditor .

[Howling4Ever]

Thank you for your replies.  I will pass this information on to my club.