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Home >> Scams/Fraud
Cashier's Check, Wire Transfer: What is Foolproof?
I am in NY and would like to sell a $30,000 car to a person who wants to give me a cashier's check at his bank in front of the teller. This will assure that the check is real, but the problem is, if I give the car to the buyer and accept the check, he could walk out, call his bank and say the cashier's check was lost, damaged or stolen, and place a stop payment on it. From my understanding now, the check I have is no good and will not be honored by the issuing bank. Now I have lost the car, because he has driven away in it. Is this how the scenario can play out? Then we discussed a wire transfer which could take 24 hours. If there is any mistake in any number the wire could be rejected and the money put back in his account, and again he has a free car. It sounds like the only way to do this is good ol' cash.
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 The cashier's check isn't going to be stopped. The buyer could claim it was lost and pay for a bond. The bond wouldn't be issued that soon though, so his money wouldn't be replaced that soon. If you're taking the check from that bank, to yours, you'll be fine.
The area of theft here is when the cashier's check is bogus and drawn on a far away bank, so it takes a long time to find out that the check was no good. The other scam is to over-pay you and ask that the difference be wired or sent via Western Union to them. Then the check comes back and you lose that money, plus the car.
Nothing is 100%. With cash you could be robbed. The cashier's check is the fastest and least expensive way to close this deal.
Published on BankingQuestions.com 5/04/09
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