Forged Cashier's Checks

Although cashier's checks are a safe and secure way to pay for a car from the buyer's point of view, it can be quite a different story for the seller. It has become increasingly common for criminals to forge cashier's checks to pay for vehicles. They rely on the seller's perception that a cashier's check is as good as cash; however, banks will not honor counterfeit checks, nor will they honor checks that cannot be cleared through lack of funds.

A fraudulent check may look highly professional and come complete with a watermark or embossed text. However, a few days after you deposit the check, you will invariably be informed by your bank that the check was forged and the money will be removed from your account.

It is therefore essential that you do not release your vehicle until you have had confirmation from your own bank that the cashier's check is genuine and has been paid by the bank issuing the cashier's check. There is a difference between checks being cleared and funds being in the account, so you must ask the bank if the check has been 'given value', rather than if it has been 'cleared'.

Some buyers may try to pressure you into releasing your car early, by giving you a check for the full asking price in the evening or at the weekend when the banks are closed. Do not be bullied; a genuine buyer will not mind waiting until the check has cleared, especially if you put everything in writing as soon as you are given the check.