What happens if a check is endorsed?

If a check is endorsed but then lost or stolen, it can be cashed or deposited by unauthorized individuals. This risk is especially high with blank endorsements, which don't limit who can cash or deposit the check. While restrictive and special endorsements provide additional security measures, they are not foolproof.

What is a check endorsement?

A check endorsement is a crucial step in the process of cashing or depositing a check, serving as a legal verification of the transfer of ownership from one party to another. It facilitates banking convenience, allowing customers to deposit checks via ATMs or mobile apps. However, check endorsement also presents challenges and risks.

What does canceled endorsement mean?

The "canceled endorsement" is their way of saying they attempted to process the transaction but did not complete it on their end. They suspect the transaction is fraudulent/sketchy and were unable to verify it, so they referred you to the maker to get things squared away. I think its a bit of both. It has the numbers w/ the stamp like you said.