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#330738 - 03/08/05 09:06 PM Counterfeit Money Orders
Midwest Banker Offline
Gold Star
Joined: Nov 2004
Posts: 349
We (like many other institutions) have been getting "hit" with a variety of counterfeit USPS money orders; they are being deposited through both business and personal accounts. In reading UCC and researching BOL I am confused as to the responsibility of the bank in terms of refunds. Can anyone provide a clearer explanation or direct me to another site?

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Security - PUBLIC
#330739 - 03/09/05 09:01 PM Re: Counterfeit Money Orders
Greg Offline
Platinum Poster
Joined: May 2004
Posts: 833
If it's deposited or cashed by a depositor you retain your right of offset. The sticky part is that they tend to come back weeks or even months later - often after the funds are long gone.

Items cashed for non-customers are still enforcable against that individual, assuming you can find them. The one advantage you have is that the recipient's address is usually printed on the PMO.
If you approach life with pure logic you can avoid almost all of the fun.

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#330740 - 03/09/05 09:29 PM Re: Counterfeit Money Orders
Fraudman CFCI Offline
Power Poster
Fraudman CFCI
Joined: Apr 2004
Posts: 3,189
Land of Steady Habits
The USPS is working to shorten the length of time. The problem is they have been inundated with over $13 million worth of these counterfeits.

I suggest you obtain copies of their excellent brochure on money orders and use these to train your front line staff on how to spot counterfeit USPS money orders.

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#330741 - 03/09/05 11:25 PM Re: Counterfeit Money Orders
Happy Camper Offline
100 Club
Joined: Dec 2003
Posts: 186
We actually purchased $1.00 postal money orders and laminated them for our branches giving them a side by side comparison. Has worked very well so far.

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#330742 - 03/09/05 11:36 PM Re: Counterfeit Money Orders
RFitzpatrick Offline
Gold Star
Joined: Apr 2002
Posts: 424
Pacific NW
The FDIC issued an alert today on this. Here's a link to the USPS info . It has a link to the PDF brochure on money order security features.
Liability for taking my advice is limited to the amount you paid for it.

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#330743 - 03/11/05 05:06 PM Re: Counterfeit Money Orders
Sharon Lewis Offline
New Poster
Sharon Lewis
Joined: Apr 2003
Posts: 24
As with counterfeit cashier's checks, expect the same to happen with any Money Orders.

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