One way around this is to wire the money to your bank, then as soon as the wire clears go to the bank and get the check certified, or buy a cashiers check from the bank. In the case of a certified check the bank takes the amount of the check and sets it aside so the check is known good. A cashiers check means the money transfers to the bank when the check is purchased. Note that cashiers checks also fall under FDIC insurance.
You'd think so, but a former co-worker of mine embezzled over a million dollars from the City of Seattle by using a method not too different. He opened a joint account for himself and "City of SEA" and was then able to deposit checks made out to the City into this account for his own use.
Must have either been pre patriot act or a bank failure, you have to show ID as city of SEA, to open the account now, did he have inside help?
That can happen but it's pretty rare. Think about who and how they are gaining physical possession of the check in the first place. They stole it out of a mail box or from the post office stream (which is fairly automated by now). That type of person is not a pro, not sophisticated, and probably doesn't know that just using a pencil eraser is going to raise eyebrows with a 2nd week bank teller.
All that said yes, there are events where someone in a more organized group is there solely to get the checks and pass them on to more capable individuals. But I'd wager the odds on that are akin to winning the lottery.
Of course winning the lottery is better.
If you are sending the check certified mail and give it to the clerk at the post office then it travels in a more restricted stream than regular mail. It goes to a bank lock box service that does the transfer (the addresses for estimated taxes are bank lock box service just like other bills.) This is why for example the address to send a tax return with a refund is different than with a payment, the payment goes to the lock box service and the remainder is then forwared to the IRS.
Well, he could show ID because he was a city employee at the time but I am still amazed that he got away with it for so long, and at such a major bank. My mom put me as joint account holder on some of her accounts after my father died, one of which was at B of A, and we had to go through all sorts of rigmarole—come to the branch in person, both show ID, sign the papers in the banker's presence and so forth. I've always wondered whether Joe didn't have either some sort of forged document OKing the account, or if someone at the bank was in cahoots with him, but if so I've heard nothing about it. You would think also that someone at the B of A would have said, "wait a minute, the City does all their banking with Wells Fargo—what's going on here"? But apparently that didn't happen either.
