How do cashier's checks work and why are they good for scams?
"There are two different issues at play here, and they are completely separate from each other: A bank or cashier's check is ""safer"" than a regular personal or business check because it avoids problem #1. Problem #2 exists with all kinds of paper checks. I assume the reason the warnings are about cashier's check moreso than personal checks, is simply because people already know to wait for personal checks to clear before handing over merchandise to the buyer. People are less likely to do that when receiving cashier's checks, but perhaps they still should if there is any doubt about the validity of the check. One could argue that a cashier's check actually provides a false sense of security due to this (to the receiver). On the flip side, if you are the payer, then a cashier's check could be thought of as more secure than a personal check because you don't have to reveal your bank account information to a stranger." Ok, few things to understand first: Secondly, think about the way a scam usually flows. A person (scammer) with an actual bank account with money issues a valid cashiers check, trick someone else (victim) into receiving it (typically in exchange for a percent) and passing along a portion to another account (back to the scammer). The scammer then reports the first transaction as fraudulent and the bank takes back that transaction. Now the victim is stuck with the second transaction, and without the funds from the first. Meanwhile the scammer has both the original funds and the percentage from the second one. In a way they're attractive for scammers because they're so trusted.
Westgate is a notoriously terrible employer to work for in Orlando, and their whole timeshare business model is a complete scam.    Check out all of the complaints on Comsumer Affairs' website:  http://www.consumeraffairs.com/travel/westgate.html?page=2  edit:  More complaints  http://www.ripoffreport.com/directory/westgate-resorts.aspx  http://www.utahstories.com/2008/06/13/timeshare-scam-westgate-resorts-2/  http://www.complaintsboard.com/complaints/westgate-resorts-tennessee-c226610.html  http://westgate-resorts.pissedconsumer.com/westgate-scam-20120926347849.html This is very similar to what was asked in this question: Scam or real? This is a real winner of a scam, because it always finds someone gullible enough to fall for it.  No stranger sends you money just to be a nice guy. This version of the scam is one I've seen on job-hunting sites.  They'll promise you a job, and then they say they'll send you a check for equipment and supplies, but you need to send most of the money back to them.  As long as they find victims, they'll continue to find more refined techniques to stay ahead of the authorities, and it'll change just enough that people won't recognize it for what it is. AVOID THIS AT ALL COSTS!! I hope this helps. Good luck! "Ask yourself one question - ""Why me?""  Say I had no friends or family (that I liked). I have money and I'm dying. There are a half dozen charities I'd write checks to. Under what circumstances would I ever contact a stranger to try to give my money away? That answers why this is a scam." "At least in the US, a Cashier's Check is just like a regular personal check - only it's guaranteed by the bank itself, so the person accepting it can be pretty certain the check won't be returned for insufficient funds...if the check is genuine! Most banks therefore have a policy for cashier's checks that is very similar to their policies on regular checks and money orders: if you are a member with an account in good standing, they'll make all or part of the money available to you according to their fund availability policy, which is usually anywhere from ""immediately"" to 7-10 days. With amounts over $5,000, banks will tend to put a hold on the funds to ensure it clears and they get their money. If you are not a member then many banks will refuse to cash the check at all, unless the cashier's check is drawn on on that brand of bank. So if the cashier's check is issued by, say, Chase Bank, Chase banks will usually be willing to cash out the entire check to you immediately (with properly provided ID). Because the bank is guaranteed by them they are able to check their system and ensure the check is real and can clear the check instantly. This policy isn't just up to individual banks entirely, as it is defined by United States federal banking policies and federal regulations on availability of funds. If you really must cash the check without a holding period and won't/can't have a bank account of your own to perform this, then you will generally need to go into a branch of the bank that is guaranteeing the check to be able to cash it out fully right away. Note that since the check might be issued by a bank with no branch near you, you should have a back-up plan. Generally banks will allow you to setup a special/limited savings-only account to deposit your check, even if you don't have a checking account, so if no other option works you might try that as well. The funds availability policies are the same, but at least you'll be able to cash it generally in 10 days time (and then close the account and withdraw your money)." When you want to pay a bill on line there are several ways to do it. You can give them your credit card details: Name on Card, zip code, credit card number, and 3 or 4 digit security code on the back. Most of the information is available on the card or via an easy Google search. If the crook has your card they can use it to buy something.  You can contact your bank's website and establish a one time or recurring transfer. You provide the information about the person/company. Your bank knows who you are because you used a secure system and your password. Their bank accepts the money because who would refuse money, they don't care who you are. You can provide the company with your bank info (bank number, your account number, and your name). If your bank limits their transactions via this method only to legitimate organizations, then your money will only be sent to legitimate organizations. But if the organization has no way of knowing who is on the other end of the phone or webpage, they may be withdrawing money from a bank account without the account owners permission.  In the example article a person found a charity that had lax security standards, they were recognized by the bank as a legitimate organization, so the bank transferred the money. The charity will point to the form and say they had permission from the owner, but in reality they didn't.  The subject of the article was correct, all the info required is on every check. It is just that most people are honest, and the few security hurdles that exist do stop most of the fraud. Same thing happened to me in the express checkout lane recently. Her total was less than $20 - I can't imagine writing a check for such a small amount.   I get it, old habits die hard, and some people are adamant about tracking their finances manually and carbon copies make that pretty dang easy, but I wish more businesses would stop accepting checks to hurry their extinction along. Well following your train of thought, if someone used the Visa/Amex/MC gift cards to buy something at another store, couldn't Visa/Amex/MC go to those stores and ask for evidence of who used the cards and then go after those people?  The rabbit hole could go pretty deep, but if the amount was large enough they might be motivated to at least make examples of some people to discourage this in the future. Contrary to what many people think, credit card companies pass nearly all fraud costs via purchased goods onto the merchant who sells them. As a result, they stand a very high chance of getting the money from a fraudulent purchase of a specific purchased item back, as they just chargeback the merchant who has to stomach the cost. This is not the case for cash transactions obviously, where as soon as the money leaves the ATM fraudulently it is as good as gone. As a result, the risk profile of the two types of transaction is wildly different, and the credit limits of each reflect this.