Online Banking

Fraud Prevention - Cashier's Checks

Fraud Prevention - Cashier's Checks


Scammers commonly attempt to take advantage of the confidence people place in cashier’s checks or money orders. Cashier’s checks or money orders are sometimes used as a way to steal money from your account or to defraud you in paying for goods or services. It is very difficult to detect fraudulent items. When you deposit a fraudulent check into your account, the law requires us to make the funds available to you within a specific period of time. Often this is prior to the check having cleared through the banking system. If the check is returned unpaid, the bank can reverse the deposit into your account and collect the funds from you. Some customers have become victims of such scams. While cashier’s checks are usually viewed as a relatively risk-free instrument and a trusted form of payment, you should understand it sometimes takes days to discover that a cashier’s check is fraudulent. In the meantime, the customer may have wired the funds to a scam artist only to find out later that they are now liable for the full amount of the cashier’s check that has been returned.
The OCC Consumer Advisory on Avoiding Cashier’s Check Fraud gives you more information on some common scams and the steps you may take to protect yourself. The advisory discusses cashier’s checks and has other helpful information for those who do business with other instruments such as money orders or official checks.