by Ken Golliher:
There are a lot of poor options. That's the dumbest one of all.
Depending on the circumstances, there is no legal hold that would assure you that your institution is protected. If you do not believe a check is good, do not take it or send it through the mail as a collection item.
by John Burnett:
Sending the check as a collection item should get you the same paper trail with evidence the check is fraudulent, and it keeps your customer from drawing on the funds during the collection process. Some law enforcement officials may have good intentions, but limited understanding of the "nuts and bolts" of banking.