How to verify a money order before you cash or deposit it
Before you cash or deposit a money order, check that it is legitimate and that the amount is correct. A fake money order can bounce weeks after you deposit it, leaving you responsible for the full amount. The issuer's name, serial number, and security features tell you whether the money order is real.
Start by looking at who issued it. The issuer name appears prominently on the front — it might say Western Union, MoneyGram, USPS, or a bank or grocery store chain. Call that issuer directly using a phone number from their official website, not from the money order itself. Give them the serial number and the amount, and they will tell you whether that money order was actually issued and whether it has already been cashed.
Key Takeaways
- Call the issuer directly using their official phone number to confirm the money order is real and has not already been cashed.
- Check for security features like watermarks, security threads, and color-shifting ink — these are hard to fake and appear on legitimate money orders.
- Verify the serial number is printed clearly and matches the amount written on the money order.
- Never deposit a money order that looks altered, has smudged printing, or was issued by a company you cannot verify.
- If you receive a money order from someone you do not know, contact the issuer before depositing it, even if it looks real.
Security features that show a money order is genuine
Real money orders have physical security features that are difficult to copy. Look for a watermark — a faint image visible when you hold the money order up to light. Legitimate money orders also have a security thread embedded in the paper itself, usually a colored strip running vertically through the document.
Check the printing quality. The text should be sharp and even, not blurry or faded. Some money orders use color-shifting ink that changes color when you tilt it. The serial number should be printed clearly in at least two places on the money order, and both should match exactly. If the serial number is handwritten, smudged, or missing from one location, the money order is likely counterfeit.
The issuer's logo should be crisp and detailed. If you are familiar with money orders from that issuer, compare this one to others you have seen. Counterfeit money orders often have logos that look slightly off — colors that are too bright or too dull, or details that are missing or blurred.
What to do if the issuer confirms the money order is fake
If the issuer tells you the money order was never issued or has already been cashed, do not deposit it. Return it to whoever gave it to you and ask for a different form of payment. If you received it from someone you do not know — through an online marketplace, a rental listing, or a job offer — this is a common fraud pattern and you should stop communicating with that person.
If you have already deposited a fake money order, contact your bank immediately. Tell them the money order is counterfeit and ask them to reverse the deposit. Your bank may hold you responsible for the full amount if the money order bounces after you have already spent the funds, so act quickly. Report the fraud to the issuer as well; they may have information about where the counterfeit money order came from.
Why money order scams happen and how to spot them
Scammers use fake money orders because they can disappear into the banking system for days or weeks before the bank discovers they are counterfeit. By that time, the scammer has already received goods or services from you, or you have already sent them money in return. The fake money order eventually bounces, and you are left responsible for the loss.
Common scenarios include overpayment scams, where someone offers to buy something from you online and sends a money order for more than the asking price, asking you to wire back the difference. Another pattern is rental scams, where a landlord or property manager sends you a money order as a deposit refund before you have even moved in. Job offer scams also use fake money orders to "reimburse" you for equipment or training costs.
If someone you do not know well is sending you a money order, especially if the amount is large or the situation feels rushed, contact the issuer before depositing it. This takes ten minutes and can save you hundreds of dollars.
Checking the amount and payee information
The amount written on the money order should match the amount printed by the issuer. Look at both the numbers and the words — if they do not match, the money order is either counterfeit or has been altered. The payee line should have your name or your business name on it. If the payee line is blank or has someone else's name, you cannot cash it.
Some money orders allow you to write in the payee name yourself if it was left blank. If that is the case, the issuer will have printed instructions on the back or front of the money order. Do not write in a payee name on a money order that was issued to someone else — that is altering a financial document and is illegal, even if the person who issued it tells you it is okay.
What happens if you deposit a fake money order
Your bank will deposit the money order and credit your account, but the credit is temporary. When the bank processes the money order through the clearing system, it discovers the money order is counterfeit and reverses the deposit. This can happen anywhere from a few days to several weeks after you deposit it.
If you have already withdrawn or spent the money, your account will go negative and you will owe the bank the full amount. Your bank may also charge you a fee for depositing a counterfeit instrument. The issuer of the fake money order may pursue legal action against you if the counterfeit money order caused them losses, though this is less common than the bank simply reversing the deposit and holding you responsible.
How to deposit a money order safely
Deposit money orders at your bank or credit union, not at a check-cashing service. Banks have better fraud detection systems and can reverse a deposit if the money order turns out to be fake. Check-cashing services often charge high fees and have fewer protections.
Before you deposit, photograph both sides of the money order for your records. Write down the serial number, the amount, the issuer, and the date. If the money order later bounces, you will have documentation of what you deposited. Ask your bank how long it takes for money orders to clear — this varies by bank, but knowing the timeline helps you avoid spending money that has not actually been confirmed yet.
Frequently Asked Questions
Can I cash a money order that has someone else's name on it?
No. A money order is a financial instrument made out to a specific person, just like a check. If your name is not on the payee line, you cannot cash it. If the person who received it wants to give you the money, they need to cash it themselves and give you cash, or sign the back and have you sign as well — but policies vary by issuer and bank.
How long does it take to learn about a money order is fake?
Your bank may credit the deposit within one to three business days, but the money order does not fully clear until it goes through the issuer's system. This can take one to three weeks. Call the issuer immediately after you deposit it to confirm it is real, rather than waiting to see if it bounces.
What if the money order is damaged or torn?
A damaged money order may still be real, but banks and issuers are more cautious about accepting them. If a corner is torn or the paper is creased, your bank may refuse to deposit it. Contact the issuer to ask whether they will replace it or if you can still cash the damaged one.
Is there a way to track a money order I sent to someone?
Yes. When you purchase a money order, you receive a receipt with a serial number. You can call the issuer with that serial number to confirm whether the money order has been cashed. Keep your receipt until you know the money order has been received and deposited.
What should I do if I receive a money order from an online buyer?
Contact the issuer before depositing it, even if the money order looks real. Provide the serial number and ask whether the money order was issued and whether it has been cashed. If the issuer confirms it is real and has not been cashed, you can deposit it safely. If anything seems off, ask the buyer to send a different form of payment.