Sadly, it can be difficult to
figure out if a cashier’s check is counterfeit or not. In fact, your bank may
not even know until the other bank returns it as unpaid and this could easily
take weeks to be discovered. Today’s con artists do everything they can to make
the check look as authentic as possible in order to delay the detection.
Protect Yourself
But there are ways you can protect
yourself from becoming a victim of cashier’s check fraud. Some important things
to keep in mind are:
·
Don’t do
business with strangers. While it’s not always possible to know each person
with whom you engage in business relations, it’s best to be cautious about
accepting checks from individuals you don’t know. If you enter a business deal
with someone you’ve never met before, make the effort to verify information
about the buyer from an independent third party.
·
Consider
escrow services or online payment systems when selling goods or services. When
you use escrow systems or processing services such as PayPal, the money is then
held until it clears. So you have an extra layer of protection from fraud.
However, there are escrow services that scam
people as well. Also, the online payment system can include expensive fees.
That’s why it’s crucial to be careful and do your research.
·
When
accepting a cashier’s check, be suspicious if it is for more than your selling
price. The key to a majority of these scams is that you’re expected to wire
an excess amount of money to a third party. So it’s logical to wonder why a
complete stranger would provide you with funds that are the property of someone
else. This should immediately serve as a warning.
In general, if you receive
correspondence of any kind that claims you’re entitled to a large sum of money
and you only owe a small fee, that’s a red flag. The rule of thumb should
always be that if something seems too good to be true, it probably is a scam.
If you choose to do business with
someone who offers you a cashier’s check, remember to save every document
associated with this transaction. The paperwork may be very valuable if a
problem with this deal surfaces down the line.
Caution and good sense are important
whenever you enter into any business deal. So don’t jump into a transaction
that involves a cashier’s check until you have thoroughly investigated every
detail. Otherwise, you could be left owing a large sum of money and possibly
losing an expensive product to scammers in the online marketplace.
As a final matter, remember that the best way to avoid
becoming a victim of Cashier’s check fraud, is to only conduct business
transactions in which all funds are delivered to your bank by a wire transfer.
Wire transfers are cash and essentially fraud-proof.
