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#330738 - 03/08/05 09:06 PM Counterfeit Money Orders
Midwest Banker Offline
Gold Star
Joined: Nov 2004
Posts: 349
Cheeseland
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
Michigan
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.
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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
2FALLS
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
RFitzpatrick
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.
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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
Oklahoma
As with counterfeit cashier's checks, expect the same to happen with any Money Orders.

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