Cashier's Checks: Not the Same as Cash

by Mary Beth Guard

Every teller in every financial institution needs to understand this important banking reality: you cannot afford to make assumptions about the validity of a cashier's check. Gone are the days when an item bearing the words "Cashier's Check" could be treated same as cash. Too many counterfeit and missing items are lurking out there, ready to cause losses to unsuspecting financial institutions who fail to take adequate precautions.

Seven men were recently arrested at the MGM Grand hotel-casino in Las Vegas and charged with a counterfeit check scheme. A multi-agency joint terrorism task form is investigating whether there is a tie between that group and Omar Abdul-Fatah Hamed Shishani, the Jordanian-American man arrested in Detroit on July 17 with $12 million in phony cashier's checks. In both instances, the phony checks were all drawn on the same bank. [Related news story]

A thousand cashier's checks from Bank of America, Dallas, Texas, were recently stolen while in transit from the check printer to the bank and FDIC said they believe circulation may be widespread.. The bank's routing number is 114000019, and the account number is 001641003748. A copy of one of the bank's checks is attached for your information. The missing checks are numbered as follows:
? 424100 through 424599
? 473600 through 474099

Counterfeit cashier's checks which appear to be drawn on Long Island Commercial Bank, Islandia, New York are being circulated. The routing number on the counterfeit items, 021000021, is the routing number for JP Morgan Chase Bank, Tampa, Florida.

Counterfeit cashier's checks drawn on Park Cities Bank, Dallas, Texas are making the rounds. The routing number is 111024386.

Counterfeit loan disbursement checks drawn on Synovus Mortgage Corporation, Birmingham, Alabama have been spotted. The checks are payable through First Commercial Bank of Birmingham, Birmingham, Alabama, with the routing number 062003605.

Take precautions:

Check the BOL Alerts & Counterfeits page to see if there is a warning about counterfeit items that could be related to the check presented to you.
Call the bank that appears to have issued the item. Verify its validity by giving them complete information -- payee, date, amount, and item number. Note who you spoke to and when. Don't utilize a phone number written on the check (in case it is a false number). Find the bank's telephone number in a reliable source, such as a bank directory, or on the bank's Web site.
Be especially wary about cashier's checks being deposited into an account that is less than six months old. It is not uncommon for scammers to establish a deposit account using a false identity, maintain an uneventful history for a few months to lull the bank into a sense of false security, then deposit counterfeit or altered items, withdraw the funds, and disappear.