I would insist on the security deposit being paid in cash or with a certified cheque. At least you have something to keep them honest at this point.
I am a landlord and agree with the posters above. Give them 14 days notice immediately. I've played the game and been burned by tenant before. Do you have a stiff penalty in your lease agreement? If they paid their damage deposit, rent, and penalty prior to the 14 days, I may let them stay, because you'd be less likely to see them trash the place if they were willing to go that far. That said, if they are already bouncing cheques, I bet they are scam artists.
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