Has anyone encountered fraud with US postal money orders? Can a bank refuse to accept US postal money order?

Thanks for your help.

If you are a banker, please register and post your inquiry in the appropriate forum. In any event, the answers to your questions --

1. There are large increases in the numbers of persons victimized by fraudulent USPS money order scams.

2. Yes, a bank can certainly refuse to cash a postal money order or to accept it for deposit.