Great Blue is right on both counts. But remember that you can only place an exception hold for a "reasonable" period of time. For next day items, one additional day is considered reasonable. Not a lot of help. Be ready to justify an additional period if you impose one.
I like the suggestion about sending the item for collection, rather than accepting it for deposit. It permits you to only pay the funds when you receive them.
Hopefully, you were able to SAR this customer and have them arrested.