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<h4 class="dechead">On One Hand: They Are Issued By the Bank
Cashier's checks are issued by the bank itself, after withdrawing funds from the customer's account. The bank issuing the check stands behind it and under federal law funds must be made available by the opening of business the following day.
On the Other: They Can Be Fraudulent
Fraudulent cashier's checks are increasingly offered by scam artists, particularly in payment for goods purchased via the Internet. If such a check subsequently turns out to be a forgery (the discovery can take weeks), the customer is liable for any funds drawn against that deposit.
Bottom Line
It is not safe to rely on a cashier's check unless you know the person issuing it and even then it is safer not to use the funds until your bank has confirmed that the check has cleared. Forgeries are often drawn on genuine banks and are almost impossible to detect.
Source:
Federal Trade Commission: Giving the Bounce to Counterfeit Check Scams
More Information:
Bankers Online: Protecting Customers from Fake Cashier's Checks
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