We received money orders for merchandise shipped through UPS/COD. We called the money order company to verify them before depositing and were told they are fake. How do we collect on them?
You'll have to go back to the person who sent them to you. When a bad check or money order goes in one direction to pay for something, when it is bad/fake, the transactions go in reverse to make each party whole, as they were before.
Obviously, if this was done on purpose, the buyer who started the scam doesn't want to be found. Other than filing a police report and trying to locate him/her, there isn't much that can be done. Even if you found the person, that doesn't mean you could collect from him/her.
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You'll have to go back to the person who sent them to you. When a bad check or money order goes in one direction to pay for something, when it is bad/fake, the transactions go in reverse to make each party whole, as they were before.