While counterfeit currency is not as prevalent as it once was, it can still be a cause of loss revenue for departments, especially during the holiday season. Banking & Accounting Operations is committed to assisting departments avoid this loss through education. Below are the two main topics covered on this webpage:
- Identifying Counterfeit Currency
- Handling Counterfeit Currency
Identifying Counterfeit Currency
There are three main methods in identifying counterfeit currency:
1. Feel the paper
The US currency has a unique feel such as being slightly rough and not too slick or smooth
2. Tilt the note
Tilt the note for color-shifting ink of the amount from copper to green for denominations $10 or higher
$100 bills has additional features such as 3-D Security Ribbon and the Bell in the Inkwell change from copper to green
3. Check with light
Check with light for the watermarks and security threads
*Additional method can be utilizing the Money Marker. These markers change from a light to dark color when marked on counterfeit currency. The Money Marker can be obtain from any office supply store.
Handling Counterfeit Currency
As a merchant of University of Washington, below are three examples of how to properly handle counterfeit currency:
-
Recognized at Point-Of-Sale (POS) Transaction
- Avoid accepting the counterfeit currency
- Provide explanation how the counterfeit was identified in a professional manner. Do not accuse as often people may not be aware of the counterfeit
-
Accepted at POS and Recognized at Reconciliation
- Do not recirculate the counterfeit currency
- Take bill to bank for reporting or follow instructions on US Currency Education Program website, click here.
- NOTE: The bank will not credit or exchange counterfeit bills
- Subtract the amount from the daily sales
- Contact local police if suspected fraud ring
-
Discovered at Bank
- The bank will debit the counterfeit currency from the deposit
- If made in person, bank will request for the depositor to initial the correction
- Banks are required to keep the counterfeit currency
Additional Resources
US Currency Education Program Website
US Currency Education Program Training Presentation - How to Check Your Money
US Currency Education Program Training Presentation - Know Your Money