The bank might not be informed the check was fraudulent until, perhaps, weeks after the customer had withdrawn funds made available by the fraudulent deposit, by which time the customer would be legally liable for the cash already withdrawn. The recipient of the check would deposit it in their account and withdraw funds under next-day availability, assuming it was legitimate. When cashier’s checks took weeks to clear the banks, they were often forged in fraud schemes. Forged cashier's checks may bounce 2 weeks after being deposited. The customer can request "next-day availability" when depositing a cashier's check in person. Genuine cashier's checks deposited into a bank account are usually cleared the next day. They are commonly required for real estate and brokerage transactions. Cashier's checks are treated as guaranteed funds because the bank, rather than the purchaser, is responsible for paying the amount. JSTOR ( December 2011) ( Learn how and when to remove this template message)Ī cashier's check (or cashier's cheque, cashier's order) is a check guaranteed by a bank, drawn on the bank's own funds and signed by a cashier.Unsourced material may be challenged and removed.
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