With all the counterfeit cashier's checks being given, how should we handle verifying that they are good and giving immediate credit on new accounts or for deposit?
One of our customer service representatives opened a letter from one of our customers. Inside was a check from a corporation made payable to our customer for $7,500. Because of previous check problems with the customer, the customer service representative examined the corporate check closely and realized that the reverse side of the corporate check did not contain the artificial watermark features or graduated background as indicated on the front of the check. The customer service representative contacted the corporation who allegedly wrote the check to our customer and was informed that it was a counterfeit check. Based on this information, the customer service representative did not credit the account of the customer. The question is what are we supposed to do with the counterfeit check? Do we notify the customer that we are not accepting the check? Previous letters from us to the customer have been returned as undeliverable. What are our options?