Prevent Cashier's Check Fraud

Many individuals accept Cashier's Checks as a secure form of payment for high priced items. With recent counterfeit check fraud appearing across the country and in San Diego, here are a few tips to protect you from Cashier's Check fraud.

Verify the check. When you receive a Cashier's Check, immediately contact the issuing bank or credit union to verify the check's authenticity. Many counterfeit checks use the name of a legitimate bank or credit union and even the correct routing codes along the bottom of the check. To be safe, confirm the check number, amount of the check and name of the person to whom the check was issued.

Accept exact payment. Never accept a Cashier's Check for an amount greater than the purchase price. In recent scams, the buyer provides payment with a Cashier's Check that is greater than the purchase price. The seller is asked to return the extra money, usually thousands of dollars, to the buyer. Unfortunately, the transfer of funds back to the buyer is complete before the check clears. Although the error may be a genuine mistake, it could also be a scam to cheat you out of your hard-earned money.

Hold the merchandise. You should not give merchandise to the buyer until you have verified that the Cashier's Check is legitimate.