Endorsing a check to someone else gives that person the right to deposit the check into his own account. A cashier’s check, which is written and guaranteed by the bank, can be signed over to another person in the same manner as most other checks.
A restrictive endorsement is a secure way to sign a check over to another person. Only the person you designate will be able to cash or deposit the check. On the back of the check there will be a square box located at one end; in that box write, “Pay to the order of,” followed by the designated person’s name. For example, “Pay to the order of Tom Anderson.” Sign your name under the endorsement exactly as it is written on the front of the check.
Scams involving fraudulent cashier’s checks are on the rise, according to the Federal Trade Commission. Be cautious when accepting an endorsed cashier’s check as a form of payment for goods or services. Only accept cashier’s checks from someone that you know, and even then, inquire as to the original purpose of the check. Look the check over carefully to make sure the payee name is spelled correctly and the amount is accurate. Reject the cashier’s check as a form of payment if anything looks suspicious.