How Can You Tell If a Money Order Is Fake?

A money order serves as a reliable paper-based financial instrument, akin to a prepaid check, enabling secure money transfers without requiring a bank account. It is widely accepted for its security, as the funds are guaranteed upfront by the issuer. Given their common use in various transactions, understanding how to identify a legitimate money order and recognize counterfeits is important for avoiding financial losses.

Security Features of Legitimate Money Orders

Legitimate money orders incorporate several security features designed to prevent counterfeiting and tampering. These features are often visible upon close inspection. For instance, United States Postal Service (USPS) money orders contain multiple security elements. When held to light, authentic USPS money orders display watermarks, including a repeating image of Benjamin Franklin on the left side and a Pony Express rider image along with the words “United States Postal Service” within a rectangular box. A vertical security thread is also present, revealing the letters “USPS” alternating in orientation when illuminated.

Other major money order providers, such as Western Union and MoneyGram, also include distinct security features. Many money orders feature unique serial numbers, which are crucial for tracking and verification. The quality of the paper itself is often a security measure, designed to be distinct from ordinary paper. Some money orders may also use color-shifting ink or microprinting, which is text so small it appears as a line to the naked eye but can be read under magnification. MoneyGram money orders, for example, may have a heat-sensitive mark that fades and reappears when touched.

Common Indicators of Counterfeit Money Orders

A primary indicator is the absence or alteration of the security features found on legitimate money orders. For example, a fake money order might lack the distinctive watermarks, such as the repeating Benjamin Franklin image or the Pony Express rider, or the security thread with the “USPS” lettering may be missing or appear merely printed on, rather than embedded. Discoloration around the dollar amounts or any signs of physical alteration suggest that the amount may have been changed.

Other red flags include poor print quality, such as blurry text, smudged ink, or misspellings on the document. The paper quality might feel unusually flimsy. Be suspicious of money orders with unusually high denominations; domestic USPS money orders, for instance, cannot exceed $1,000, and international ones are limited to $700. If the serial numbers on multiple money orders from the same issuer are not sequentially close, or if the phone number listed on the money order for verification is not legitimate, these are strong indicators of fraud. Scammers often use altered money orders for overpayment schemes, sending an amount greater than expected and requesting the difference back.

Steps to Verify a Money Order

The most direct method is to contact the issuing entity directly. It is important to use official contact information found on their verified websites, rather than relying on phone numbers printed on the money order itself, as these could be part of a scam.

For USPS money orders, call the U.S. Postal Service Money Order Verification System at 1-866-459-7822 or use their online tool by scanning a QR code on newer money orders or visiting usps.com. You will need the money order’s serial number, the post office number (for USPS), and the exact amount to verify its status. For Western Union money orders, use their automated help line at 1-800-999-9660, requiring the 11-digit serial number and the dollar amount. MoneyGram money orders can be verified by calling 1-800-542-3590 or by using their online portal, inputting the serial number and amount. Always wait for the funds to clear before acting on the money order.

Actions to Take If You Suspect a Fake

Under no circumstances should you attempt to cash or deposit the suspicious money order. Doing so could result in financial loss, as you would be responsible for repaying any funds advanced by your bank, along with potential fees.

Report the incident to law enforcement. Contact your local police department and, if the money order was mailed, also inform the U.S. Postal Inspection Service (USPIS) by calling 1-877-876-2455 or visiting their website. Report the suspected fake money order to the issuing company, such as Western Union or MoneyGram, using their official fraud reporting channels. Preserve the money order, and any accompanying envelopes or documentation, as evidence for the authorities.