Learn How to Spot Cashier's Check Scams

Understanding What Cashier's Checks Are and Why Scammers Target Them

A cashier's check is a payment method issued by a bank on behalf of a customer. When you request a cashier's check, the bank takes money directly from your account and prints a check that appears to come from the bank itself rather than from you personally. Banks guarantee these checks because the funds are already set aside. This makes them seem safer than regular personal checks, which is precisely why scammers prefer them.

Get Your Free EZPass Account Guide →

Cashier's checks became a popular scam tool because they look official and carry the bank's name and logo. Many people trust them more than other payment forms, assuming that a bank-issued check must be legitimate. Scammers exploit this trust by either creating fake cashier's checks or convincing victims to purchase real ones and send the funds to fraudulent accounts.

The problem has grown significantly in recent years. The Federal Trade Commission reports that check scams involving cashier's checks cost victims millions of dollars annually. Unlike credit card transactions or wire transfers, cashier's checks are harder to reverse once they're deposited. Banks may take weeks to discover that a check is counterfeit, by which time the scammer has already withdrawn the money.

Understanding how these scams work is the first step in protecting yourself. Scammers use several tactics: they may pose as legitimate sellers on online marketplaces, pretend to be employers offering job positions, claim to represent government agencies, or act as contractors seeking payment for work. The common thread is that they create urgency and convince victims that a cashier's check is the safest payment method.

Practical Takeaway: Recognize that while real cashier's checks are bank-guaranteed, this does not mean every cashier's check you receive is legitimate. Banks cannot verify the authenticity of checks instantly, and scammers know this delay works in their favor.

Red Flags When Someone Requests a Cashier's Check from You

Legitimate businesses and individuals rarely request payment by cashier's check in modern transactions. When someone insists on this payment method, it should raise suspicion. Online marketplace transactions, job offers, rental agreements, and contractor payments typically use more traceable methods like credit cards, PayPal, or bank transfers. A request for a cashier's check often indicates the person knows the transaction is difficult to reverse.

Make Talbots Credit Card Payments Online Guide →

Pay attention to the context of the request. If you are selling something online and the buyer insists on sending a cashier's check before seeing the item, this is suspicious. If someone offers you a job but asks you to purchase equipment or pay fees using a cashier's check before you've even started work, this is a common scam pattern. Real employers do not ask new hires to buy their own supplies with cashier's checks.

Another red flag is when the person provides a mailing address that does not match their claimed business. For example, if someone claims to represent a major corporation but asks you to mail a cashier's check to a personal address or a different city, verify this independently. Contact the company directly using a phone number or address from their official website, not from the person contacting you.

Pressure and urgency are also warning signs. Scammers often create artificial deadlines: "Send the check by Friday or the deal is off," or "I need payment within 24 hours." Legitimate transactions allow time for proper procedures. Be wary of anyone who becomes aggressive or defensive when you ask questions about the payment method.

Watch for grammatical errors and awkward phrasing in written communications. Many scammers operate from outside the country and may not use proper English. While this is not definitive proof of fraud, it combined with other red flags warrants caution.

Practical Takeaway: If someone unfamiliar to you requests a cashier's check, stop and verify their identity through independent channels before proceeding. Do not rely on contact information they provide.

How to Identify Counterfeit Cashier's Checks

Identifying a fake cashier's check requires knowing what security features real checks contain. Banks invest heavily in anti-counterfeiting technology. Most genuine cashier's checks include watermarks, security threads, special inks that change color when tilted, and microprinting that is difficult to reproduce with standard printing equipment.

Get Your Free Reiki Beginner's Guide →

Examine the check physically if possible. Feel the paper texture—legitimate cashier's checks use specialized paper that feels different from regular printer paper. Look for raised printing, especially on the bank's name and logo. Counterfeit checks often look flat because they are printed on standard equipment. Check the MICR numbers at the bottom, which are printed in magnetic ink and should align perfectly. Misaligned or blurry numbers indicate a fake.

Verify the routing number. Every bank has a unique nine-digit routing number. You can search for a routing number on the Federal Reserve's website or your bank's website. If the number does not match the stated bank, the check is fraudulent. The account number should also look legitimate—it should be a reasonable length and contain only numbers.

Look for inconsistencies in formatting. Banks use standardized layouts, fonts, and spacing. If the check looks cluttered or poorly formatted, or if information is in unexpected locations, this suggests counterfeiting. The date should be reasonable and recent. A check dated years ago or with a future date is suspicious.

The signature line is often a clue. Many counterfeit checks have a printed signature instead of a blank line where an authorized person signs. Banks use authorized signatory systems, but real cashier's checks typically bear actual signatures of bank employees. Ask your bank to verify a check's authenticity directly. Never assume a check is real based solely on appearance.

Practical Takeaway: Before depositing any cashier's check from an unfamiliar source, contact the issuing bank directly using a phone number from the bank's official website and ask them to verify the check number and amount.

Common Cashier's Check Scam Scenarios and How They Unfold

One prevalent scam involves online marketplaces like Facebook Marketplace or Craigslist. A buyer contacts a seller about a high-value item such as a car, jewelry, or electronics. The buyer claims to be interested and offers to send a cashier's check. What the seller does not know is that the check is counterfeit or stolen. The seller deposits the check, the bank clears it provisionally, and the seller ships the item. Days or weeks later, the bank discovers the check is fraudulent. The seller's bank charges back the deposit, leaving the seller out both the item and the money.

How to Reach Columbia Gas of Ohio →

Job offer scams follow a similar pattern. A person applies for a position online. After a brief interview or email exchange, they receive a job offer with a salary. The employer then sends a cashier's check as an advance on salary or to cover startup expenses like equipment or uniforms. The "employee" deposits the check and purchases items as instructed. The check eventually proves to be fraudulent, and the person loses both the deposited funds and any money spent on supplies.

Rental scams target people searching for apartments. A scammer gains access to photos and information from legitimate rental listings, then creates a fake listing at a lower price. They communicate with interested renters and request a deposit via cashier's check. After receiving the check, they disappear. The real landlord has no idea about the fraudulent listing or the money collected.

Overpayment scams occur when a cashier's check arrives for more than the agreed amount. The scammer claims it was an error and asks you to wire back the difference. You deposit the check, wire the excess, and only later does the bank discover the check is fake. You are then responsible for the full amount, including what you wired.

Inheritance and prize scams also use cashier's checks. A person receives notice that they have inherited money or won a contest they never entered. They are told to pay taxes or fees upfront using a cashier's check. Sometimes the scammer first sends a fake cashier's check as a partial payment to build credibility before asking for money from the victim.

Practical Takeaway: Recognize these common scenarios and remember that cashier's checks create a long delay between when you deposit them and when banks detect fraud. Never assume a check is safe simply because your bank initially processed it.

Steps to Take Before Accepting or Depositing a Cashier's Check

The most important step is to verify the check

What to Bring to Your DMV Permit Test Guide →