I Thought Cashier's Checks Were Like Money

As a CPA, I just have to point out this article about the proliferation of fraudulent cashier's checks:

Your friendly bank teller may not be much help when it comes to fighting one of the biggest scams around these days.

The scam is phony cashier's checks. It's a problem that is reaching almost epidemic levels.

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I've said this before, and I'm sorry to say that I have to say it again. Do not blindly trust cashier's checks. Scammers are doing such a good job making counterfeits that you have to treat all checks the same.

Bank tellers routinely tell customers the money will be available within five days. What many of them aren't telling you is that doesn't mean the check has cleared.

The story is about a woman who deposited a cashier's check and then was defrauded. I first noticed this distrust in cashier's checks - by my bank - a few years ago after we had sold a piece of land. I took my check to deposit at the bank, from a title company, as a cashier's check, and was told that there would be a 5 day hold on the deposit. I was incredulous, and a little frustrated. The teller told me that fraudulent checks were on the rise, even TITLE COMPANY checks, and this is what I could plan on for the future.

I am not a patient woman when it comes to financial matters; we now routinely use wire transfers for those types of transactions. I've no doubt that the criminals will figure out how to mess up wiring transactions someday as well, but for now it serves.

As one who often gives financial advice, beware of the cashier's check scams, and plan ahead if you need to use one.