Counterfeit Money Orders Strike

Register now

Area credit unions and banks are being hit with a counterfeit money order scam, costing customers tens of thousands of dollars. University of Kentucky FCU said three members wracked up more than $20,000 in losses when they tried to cash the bogus certificates. As a result, credit unions and banks are ending the tradition of treating money orders as cash as money technology has helped scammers create life-like money orders.

The Federal Reserve recently reminded financial institutions that they may treat money orders as checks and impose a hold period of up to 10 days. The Fed is also speeding up processing of money orders in order to detect counterfeits faster.

For reprint and licensing requests for this article, click here.