Agency issues alert about forged cashier’s checks

The Federal Deposit Insurance Corp. has issued a special alert about forgery of cashier's checks from Community Bank of Las Vegas, and an FDIC spokesman on Thursday said reports of forged checks and forged cashier's checks are becoming common.

The Federal Deposit Insurance Corp. has posted 118 special alerts this year to date, most of which were for forged checks or forged cashier's checks, up from 84 in all of 2003, the first year of special alerts.

FDIC spokesman David Barr said he didn't know whether banks are reporting forgeries to the government more frequently or more forged checks are being passed.

Con men today can quickly forge a check using a personal computer or blank checks from an office supply store, Barr said.

He contrasted the ease of making a counterfeit check today with the difficulty Leonardo DiCaprio's character had forging a check in "Catch Me if You Can," a movie set in the early 1960s.

"Today, you do it with a few clicks of your computer," Barr said.

Consumers and businesses should beware, because they will suffer the loss if they accept a forged cashier's check as payment, Barr said.

A con man typically pays with a check for more than the amount of the purchase, requesting cash for the difference. After the seller's bank account shows the money is available, the seller often will give the buyer some of the cash back.

Under a bank regulation, banks must release money for a check sometimes before the check has cleared.

Yet, "it can take up to two weeks for a check to clear the system," Barr said.

When a forged check finally is processed, the seller's bank will deduct the amount of the check from the seller's account.

Attempts to reach Community Bank for comment, concerning the special alert of April 25, failed.