Features

Cashier's checks are reproduced with enhanced security features including: security threads, watermarks, and color-shifting ink. These features help to reduce the risk of counterfeit checks.

Charateristics of Cashier's Checks

Certain important information is printed on the front of the check such as: the payee's name (to whom the check is payable), numeric value, branch of issue, and the remitter's information (the entity that paid for the check). Sometimes the check may be signed by two of the bank's officers or feature a facsimile signature from the institution's chief executive officer.

Added Security

Cashier's checks are safe and secure because the sum of the check must first be placed by the individual into the distributing financial institution's own account. So, the person to whom the check is made out to is guaranteed to receive funds once cashing the check.

Alternatives

Counterfeit cashier's checks and money orders have been used in fraudulent schemes to purchase on line merchandise from vendors. Sometimes banks may not be able to detect the counterfeit check for 10 days or more. However, banks will deposit it into the account and mark it as "clear." After detection, the customer is responsible for returning the funds.

Transactions

Due to these fraudulent schemes, most banks will wait for a cashier's check to clear the originating institution before they deposit it into their account.

Source:

Investopedia: What are Cashier's Checks?

OCC Consumer Advisory: Avoiding Cashier's Check Fraud

More Information:

Gallagher, Callahan, and Gartrell: Cashier's Check Is Not Always As Good As Cash