Cashiers check fraud and scams

what are cashier’s checks?

Cashier’s checks are checks guaranteed by a financial institution, drawn from its own funds and signed by a teller or cashier. cashier’s checks are generally considered a safe way to make a large payment on a purchase.

the difference with a regular check is that the bank guarantees your payment, not the buyer. however, keep in mind that a financial institution may stop payment on a cashier’s check under specific and limited circumstances under the Uniform Commercial Code, generally for lost or stolen cashier’s checks.

Don’t assume you have the funds until the cashier’s check has cleared. If a cashier’s check is not genuine and you unknowingly accept a fraudulent cashier’s check in exchange for goods or services, it is likely that you will suffer financial loss.

how a cashier’s check scam works

1. cashier’s check scams almost always involve someone giving you a genuine-looking check or money order and asking you to wire them money or send them goods in return.
2. after After you deposit or cash the check or money order and send the money, you learn that the check sent to you was fraudulent.

tips on how to avoid cashier’s check scams

• know the people who send you the check be careful when accepting checks, even a cashier’s check, from someone you don’t know. if the check is a scam, it can be difficult to find a solution.
• verify that the written check is genuine call or visit the branch of the financial institution where the check was sent check. is drawn on. The financial institution should be able to help you determine if the check issued is genuine or not. do not trust the financial institution’s phone number on the check, it could be fraudulent. do your research and find the real phone number for the institution.
• verify that the check has cleared call your financial institution and verify that the check has cleared and that the money is in your account.
• save all documents save all documents associated with a cashier’s check. this paperwork can come in handy if something goes wrong.

Common Cashier’s Check Scams

• work from home scams you receive payments via cashier’s check and are supposed to deposit the payments into your account and forward the money to someone else. Often advertised as a work-at-home check processing job, these schemes are often problematic. in some cases, it is laundering money for criminals. in other cases, the first few payments are fine, but eventually you’ll get a fake check (after they’ve earned your trust) and lose money.
• mystery shopper scams reports that he has been chosen to act as a mystery shopper. You receive a cashier’s check and are instructed to deposit the check into your account. You are instructed to use a portion of your funds to purchase items at designated stores, transfer a portion of the funds to a third party through a transfer service company, and keep the rest. the cashier’s check turns out to be fraudulent and you lose the money you have spent and sent.
• cashier’s checks are used to buy goods, services you sell products and a buyer sends you a cashier’s check for the agreed price. you ship the goods to the buyer and discover that the cashier’s check is fraudulent.
• foreign lottery scams you won a foreign lottery or a relative died and you inherited a lot of money the letter you receive usually comes with a cashier’s check. says the check is to help cover the taxes and fees associated with claiming the prize money. you just need to deposit the check into your account and transfer some of the money to cover those taxes and fees to the people who sent it to you. you get to keep the rest of the money you deposited and the full amount of prize money you’ve ‘won’. of course, the money you were promised never shows up, and you are left without the fees you paid.
• rental property scams someone looking to rent your property is willing to pay first and last month’s rent (and security deposit) with a cashier’s check before they see the property due to supposedly taking a new job. the day after I deposit the check, they say there was a problem with the job: they won’t come, so they don’t need the rent. you can keep the security deposit, but they would like part of the rent back. after you send the refund, you will discover that the check was fake.