What Happens if a Money Order Was Cashed Without Being Paid For?
Money orders are prepaid checks that you can purchase for a fee at most post offices, banks, wire transfer places and some supermarkets. Legitimate money orders are a safe way to send and receive money; however, at the time of publication, some con artists attempt to trick victims into cashing fake money orders. If you cash a money order that has not been issued by the U.S. Postal Service, you will end up owing money to your bank and could find yourself in jail for perpetuating fraud.
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Must Repay Bank
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The person who cashes a money order is responsible for repaying the bank if the money order turns out to be counterfeit or otherwise doesn't clear. If the victim has enough money in his account with the bank to cover the cost of the money order, the bank may debit it from his account. The bank may also charge returned check fees. If the victim does not pay the bank back within a certain period of time -- between 30 and 90 days, depending on the bank -- the bank may close the victim's account or take other collection activity against him.
Criminal Charges
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If a victim cashes a fraudulent money order and wires part or all of the money to a scammer, law enforcement may consider her an accomplice to fraud rather than a victim. Although she may not have known the money order was fake, she presented a counterfeit order, which allowed her to steal money from the bank and give it to someone else. Thus, the victim may be arrested for fraud or being an accomplice to committing fraud.
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Avoiding Scams
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To avoid scams involving money orders, only accept money orders from people you know or have reason to trust. For example, don't accept money orders from strangers who email you asking you to cash money orders for them or who use money orders to pay for purchases over the Internet. You can also check whether money orders are genuine by holding them up to the light. Genuine postal money orders have a watermark of Ben Franklin, a security strip and the words USPS that you can see only in the light.
What to Do
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If someone contacts you asking you to cash money orders for them, never accept the offer. Save the email and contact the Money Order Fraud Report Hotline at 800-372-8347. You may have to forward the emails to the U.S. Postal Service or the FBI to help catch the fraudsters. You can also contact this umber if you have fallen victim to this type of scheme.
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