We recently experienced a substantial loss (now approaching $200,000) that is still increasing because of fraudulent endorsements on checks that were deposited through a money service business. The items are primarily Treasury checks, money orders and a few cashiers checks. The money orders were purchased at banks and convenience stores and the Treasury checks were issued to Spanish Americans or Mexicans who are legally in the United States. Purchasers and payees of the money orders all appear to have Spanish names.
The scheme is purported to work as follows:
Money orders and checks are purchased in the United States and forwarded to families in Mexico. Treasury checks may be mailed to Mexico or to locations in the United States and then forwarded to Mexico. The checks were supposedly negotiated in Mexico at 50% of face value and then sent to the money service business (our customer) in the United States. The money service business (check cashing) purchased the checks for 80% of face value and deposited them at in our bank. The middleman in Mexico never endorsed the items. Checks appear to bear the endorsement of the payee and our customer, but the endorsements are fraudulent. Obviously, the checks appear to have been stolen.
The Department of the Treasury has confirmed that a fairly elaborate ring or rings exist as other banks are also experiencing losses. The deposits into our bank were generally deposited more than forty-five days after the issue date.

I believe that your organization could return the items to the company that cashed them, making them take the loss.

But that would only work there was money in that company's account (or if they could come up with the money).