Unlike a personal check, a cashier’s check is a direct obligation of the bank. As a result, there is virtually no risk that a cashier’s check will bounce or otherwise be invalid. Unfortunately, fraudsters can create phony cashier’s checks and use them for check scams. Learn how to verify a cashier’s check so you can avoid being a victim of check fraud.
How To Verify a Cashier’s Check
You can take precautions to ensure that a cashier’s check is legitimate. To avoid being a fraud victim, follow these steps on how to verify a cashier’s check. Here’s a closer look at the steps you should take to avoid scams involving cashier’s checks.1. Don’t Accept a Cashier’s Check If There Are Signs of a Scam
One common cashier’s check scam involves someone overpaying for an online purchase — so if you receive a cashier’s check for more than the purchase price, don’t accept it. For example, a buyer based outside the U.S. sends a cashier’s check seemingly from a U.S.-based bank and asks you to refund the overage separately. Federal law requires that funds from a deposited cashier’s check be made available in one business day. By the time the fraudulent check is discovered days or weeks later, the buyer is nowhere to be found. Because you made the deposit, the bank can hold you liable for the fraud. In addition to the overpayment scam, other common scams to watch out for include:- Prize or lottery awards
- Prepayment for mystery shopping involving check deposits and wire transfers
2. Examine the Cashier’s Check
Cashier’s checks often include a distinct feature specific to the bank and often tell you what to look for. If the check states there is a watermark or microprint, look for that on the check. If it’s missing, the check might not be valid. Typos are another giveaway that a check is phony, as fake cashier’s checks sometimes come from senders overseas. Here’s how a cashier’s check typically looks:3. Visit or Call the Bank
Only the bank that issued a cashier’s check can truly verify it. Keep in mind that you can’t verify a cashier’s check online, but other options are available. If the check is issued from a bank that has a branch near you, there’s no better approach than to take the check into the bank and ask for verification. At a larger bank, such as- Check number
- Name of the person who gave you the check
- Payment amount
How To Cash a Cashier’s Check
It’s best to cash or deposit a cashier’s check at the bank that issued it, as the validation process is easier. Otherwise, you’ll need to cash it at another bank where you have an account. You’ll need to present ID verifying that you are the payee the check is made out to, along with your bank account number or ATM card. If you’re wondering whether cashier’s checks clear immediately, be aware that there is typically a waiting period. Certain check-cashing businesses, as well as many Walmart stores, can cash a cashier’s check for you, but they will likely charge a fee. Walmart, however, promises the cash immediately.What To Do If You’re a Victim of Cashier’s Check Fraud
If you’re a victim of cashier’s check fraud, it’s essential to report it immediately. Talk to your bank about how to resolve the issue. You should also report it to:- The Federal Trade Commission
- Your state’s attorney general
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