A client scammed Mako by using two cashier's check and a fictitious workers compensation settlement. Mako received and deposited two different cashier's checks that it received from the plaintiff into its account. Mako then removed its 20% contingent fee and transferred the rest to the client's overseas bank account. Mako was quite surprised when both of the plaintiff's checks were returned for insufficient funds. Even worse was when neither the plaintiff nor the client could be found. The worst jolt was when Mako's insurance company refused to compensate it for its $175,000 loss because of anexclusion in its professional liability policy.

Click here to see how the courts reacted to the insurance company's denial.

The cashier's check has always been considered different than a personal check but it really is not. The faith and trust in cashier's checks has allowed scam artist's to accomplish some of their best bait and switch cons. A person who would never trust a personal check will readily accept a cashier's check and that is when the problems begin.

Click here for an article from PF&M that addresses counterfeit cashier's checks.

Counterfeit cashier's checks are not a new phenomenon. However, they continue to surprise those honest individuals who believe they are being cautious by requiring a cashier's check to aid in a transaction.

Click here for a question and answer from a 1999 Rough Notes Magazine. The scam looks very similar to the 2011 transaction, doesn't it?

Do you think any of your clients or prospects would be interested in this situation? Would it help them in their business and personal life to be more aware of potential scams that are geared to those who are actually very cautious?

Click here for an article in Business Building Letters that explains how to use newsletters and information gathered from sources, such as IN ACTION, to inform your clients and enhance your relationship.