Check cashing occurs when the recipient of a check exchanges it for money. This can happen at a bank or any other check cashing institution. Cashing a check is different than depositing a check, as when a check is deposited the money will go into a bank account instead of directly to the recipient. Often, a check may be cashed at no charge at any bank where the check recipient has a checking account or a savings account, or sometimes at the same bank that is noted on the face of the check (which is where the check writer does business).http://banking.about.com/od/checkingaccounts/a/cash_a_check.htm

There have been a number of check cashing scams reported in the United States in recent years. In most cases, an individual or party contacts the victim claiming that they will award them a sum of money in exchange for cashing a check at their local bank. Once the victim agrees, a check is mailed out to her or him. The instructions are to cash or deposit the entire check, send the scam artist a cut and then keep the rest of the money. Unfortunately, the checks are fake and often once the bank has cashed the check the fraud is discovered. The victim may then be responsible for paying the entire sum back to the bank, and thus ends up losing money on the deal.http://www.washingtonpost.com/wp-dyn/content/article/2007/10/03/AR2007100302323.html

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