Banks are required to make funds available after a certain period regardless of whether the cashier's check is fully negotiated and funds actually transferred to your account. When you wire those available funds that are not actually received from the payor's bank, you become the guarantor of the transaction.
Is the email request too good to be true?
The promise of a significant fee for essentially laundering the check is a tempting lure.
Recent check fraud claims have added a layer of legal services, such as drafting the agreement of an already completed settlement or sale. Do not let the potential fee blind you to the fraud.
Even if you miss all of these red flags, you can still protect yourself by not transferring, wiring or withdrawing ANY funds until your bank actually receives the funds from the payor’s financial institution.
REMEMBER: Received funds is not the same as made available by the bank pursuant to the Expedited Funds Availability Act. We recommend using a letter to confirm full receipt of the funds with your bank to protect yourself. Click here for a sample letter.
Please contact me if you have any questions or would like to discuss a potential situation!