So let’s say the deposit and advance rent was $3,000 and the tenant has asked you to refund $1,500. You’ve deposited the $3,000 and you wire back the amount requested. And in a few weeks, your bank notifies you that the check was counterfeit. You are now out $4,500 (the amount of the original bogus check plus the money you sent) along with bank fees, and you have little chance of recovering any of it. Most of the time, the scammer is overseas and it’s virtually impossible for authorities to locate them for prosecution and restitution.

Do not be lulled into feeling secure because you have received a cashier’s check. Scammers have gotten very good at counterfeiting cashier’s checks, postal money orders, and other certified financial instruments, and it may take your bank several weeks to find out that a check is bogus.

This doesn’t mean you should refuse to accept cashier’s checks from tenants—but if you do and are asked for a refund of all or a portion of the money, say no until you are able to absolutely verify that the check is legitimate.

A very important point to remember is this: Just because your bank makes the funds available does not mean that it has confirmed that the check it valid. The Expedited Funds Availability Act stipulates the maximum number of days a bank can hold a deposited check before making the funds available. This rule was developed to prevent banks and other institutions from placing overly-long holds on deposited funds. In addition, though there are some exceptions, banks are generally required to make funds deposited via cashier’s check available on the next business day if certain conditions are met. However, the check is still subject to final clearing and charge-back if the item is not honored.

If you accept a cashier’s check for payment of any kind, you can verify that the check is genuine by calling the issuing bank. Use the phone book, the bank’s website, or directory assistance to locate a telephone number—do not use a number printed on the check because it could be a hoax.