How to Check If a Cashier's Check Is Fraudulent
People receive cashier's checks for a variety of reasons, but many check recipients are keen to make sure that the checks they receive are not fraudulent. Internet-based criminal groups often send out fake checks when making online purchases. Other scams involve people receiving checks purported to contain inheritance money or lottery winnings. Fake checks look authentic and usually bear the logo of a well-known U.S. bank. Even industry professionals are sometimes fooled by fake cashier's checks.
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Instructions
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Look at your cashier's check to see where the funds are drawn from. If it bears the name of a respected organization that owes you money, you can call that company to verify the check. The chances of someone sending you a fake check that looks the same as a check you are expecting to receive are slim. If you did not expect to receive the check, or if it came from a party you are unfamiliar with, you should write down the name of the bank that the funds are drawn on.
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Go online and look up the telephone number of the drawee bank. Call the customer service number of the bank. Do not call the phone number listed on the check itself because some criminals create fake bank phone numbers and list them on checks. Provide a bank representative with the check number of the cashier's check. Ask the representative to verify the item. Some banks do so by stating your name, the date of issuance and the amount of the check. Due to privacy concerns, some banks refuse to verify funds over the phone.
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Go to the bank named on the check as the drawee. Provide a teller with the cashier's check and your I.D. Ask the teller to verify the item. The issuing bank can verify the item for you without delay if you visit the bank in person. You can cash legitimate checks at the drawee bank.
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Deposit the check in your own bank account if you are unable to verify its authenticity over the phone and do not have a branch of the drawee bank within your area. Explain to your bank that you doubt the authenticity of the item. Your bank can cross reference the check against known types of fraudulent checks. If the check does not match known fraudulent items, ask your bank to send the check for collection. This involves you paying a fee to have the funds wired to your bank. You must pay the collection fee even if the check is fake. Alternatively just deposit the cashier's check like normal, but do not attempt to draw on the funds for at least 11 business days.
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Tips & Warnings
If you did not participate in a lottery, they you should not expect to receive a check containing lottery winnings. Scam artists rely on people abandoning common sense and trying to negotiate checks that they did not expect to receive. Another popular scam involves people over-paying for goods bought online and asking the check recipient to wire back the surplus funds. Do not accept checks that exceed the amount you agreed to sell an item for.
Generally, most checks clear within 11 business days, but technical problems and misdirected checks sometimes take longer to clear. Bank holds are placed to allow a time for a check to clear but the holds expire even if funds have not been collected.
