The second check is immediately cashed, and the original check is saved for later use. Sophisticated con artists know that stop payments at most banks are only good for 180 days, after which time they expire. They must then be renewed for another 180 days, though few companies do so. The clever con artist will patiently wait up to one year before negotiating the second check, which will pay almost every time. To block this scam, some banks put extended stop payment periods, such as 999 days, on checks issued by selected industries, particularly insurance companies.
Many companies have dozens or even hundreds of stop payment orders in effect at any one time.
The cost for those stop payments can become prohibitive, but the exposure for loss is even greater, considering that a loss is not the bank's liability. An excellent alternative to stop payment renewals is Positive Pay. The original check that was stopped is more likely to be deposited, not cashed over the counter because a sharp teller might notice the old date.