How to Avoid Certified Check Scams

Certified check scams are on the rise. Most people believe a certified check (a bank check) is guaranteed to be legitimate and that it is as good as cash, but this is not always the case. Bank checks from out of the country are particularly suspect. Be suspicious of certified checks that come to you from someone you don't know well, especially from eBay purchasers. Here's how to protect yourself.

Difficulty: Moderately Easy

Instructions

1. Understand that banking laws require your bank to make funds available to you within a specified time, usually within a few banking days. It may take longer than that to verify funds if the certified check is from a foreign bank. If you use any of the funds from the check and it turns out to be bogus, you'll have to make good on the amount you use.

2. Beware of any certified check that is drawn for more than the amount owed to you. One way scammers can take your money and leave you with a worthless check is to send you a counterfeit certified check for more than what's due, ask you to deposit it in your bank and wire the sender the difference out of your account. If the check is no good, you'll lose the amount you wire and still be responsible to reimburse your bank for any additional amount you spend.

3. Wait until your bank verifies and clears the certified check before using any part of it, no matter how long it takes. Don't give in to pressure from any business or individual to send any portion of it before it clears. The fact that a certified check looks official, that your bank accepts it and makes the funds available to you is no guarantee that it's valid until it actually clears.