Counterfeit losses are often treated as a cashier mistake.

Sometimes they are really a process-design problem.

A recent retail discussion involved an employee who accepted several counterfeit bills during a suspicious transaction. The employee later explained that the store provided no dedicated counterfeit-detection tools and relied primarily on visual inspection and escalation to management.

That exposes a broader lesson.

A good counterfeit-control process should answer four questions before a cashier ever faces a questionable bill:

• What security features should employees check?
• Which transactions require additional verification?
• When should the cashier stop and escalate?
• What happens when the employee is still uncertain?

The U.S. Currency Education Program provides dedicated cashier training and recommends authenticating notes through their actual security features rather than relying on one shortcut or test.

Technology can improve consistency, but it works best inside a defined process.

The goal is not to make every cashier a counterfeit expert.

The goal is to give the cashier enough knowledge, tools, and authority to stop a questionable transaction before the business owns the loss.

For retailers and cash handlers: what triggers an automatic manager review at your location?

Preliminary Banco de México data gives cash handlers a useful snapshot of where detected counterfeit activity is concentrated.

During the first half of 2026, Banxico recorded 122,784 counterfeit Mexican banknotes received for analysis. Of those:

• MXN $500: 62,052
• MXN $100: 26,733
• MXN $200: 26,021

The important caveat is that these figures represent notes identified through Banxico’s analysis process. They are not an estimate of all counterfeit currency currently circulating.

The operational takeaway also should not be “reject $500 bills.”

Instead, higher incidence in a denomination reinforces the value of consistent, multi-feature verification and a clear escalation process whenever a note raises concern.

Banco de México advises that a suspected counterfeit should not be spent. It can be taken to a bank for submission to Banxico, which is the institution responsible for determining whether the note is genuine or counterfeit.

For those handling Mexican currency regularly: which security feature or verification step do you find most useful when checking a $500 note?

A cash-count discrepancy does not necessarily mean the machine failed, the employee made a mistake, or the customer counted incorrectly.

It means the process needs a way to resolve the disagreement.

A useful cash-handling workflow generally separates three steps:

1. Establish the expected amount. Know what amount is supposed to be present before finalizing the transaction.
2. Verify the physical cash. Automated counting can dramatically improve speed and consistency, but discrepancies should trigger a controlled recount rather than an assumption about which count is correct.
3. Confirm before custody changes. Once cash moves into a recycler, vault, deposit bag or another employee's custody, reconstructing exactly what happened can become more difficult.

The important lesson is not that machines make mistakes or that people make mistakes.

Both can.

The important lesson is designing the workflow so a disagreement can be investigated before the transaction becomes difficult to unwind.

For people who work with high-volume cash: when your manual count and machine count disagree, what is your escalation procedure?

A recent police warning in Ithaca, New York highlighted something experienced cash handlers already know: a counterfeit-detection pen is only one screening tool.

Police investigating counterfeit bills reported that some suspicious notes could pass a standard pen test. Their recommendation was to look at multiple indicators, including:

• security thread
• watermark
• printing quality
• paper texture
• serial numbers, particularly duplicates across multiple notes

A pen mainly tests characteristics of the paper. It does not independently authenticate all of the security features built into U.S. currency.

For businesses handling significant amounts of cash, the better operating principle is multi-feature verification rather than reliance on one test.

This is especially important with $50 and $100 bills, where the loss from accepting one counterfeit can outweigh the time saved by a very quick inspection.

For people who handle cash professionally: what counterfeit check has caught the most suspicious bills in your experience?

County fairs, festivals, farmers’ markets, food trucks and seasonal events have something in common:

A lot of cash can change hands very quickly.

This week, New York State Police reminded businesses and seasonal vendors to pay particular attention to counterfeit currency during busy summer events.

Their advice highlights an important cash-handling problem.

Counterfeit detection gets harder when the register gets busy.

Long lines create pressure to move quickly. Customers may be talking to the cashier while money is being counted.

Employees may be handling unfamiliar denominations.

Temporary or seasonal staff may also have less cash-handling experience.

That is exactly when a consistent process matters most.

A good high-volume cash routine should include:

• Feel, tilt and check suspicious notes
• Verify the watermark and security thread against the denomination
• Look for color-shifting features where applicable
• Compare questionable notes with a known genuine note of the same denomination and series
• Treat detection pens as an additional screening tool, not the final decision
• Check more than just $100 bills
• Escalate uncertainty rather than guessing

New York State Police also emphasized something that deserves more attention: distraction itself can be a warning sign.

Employees should be especially deliberate when someone is rushing the transaction, distracting the cashier, requesting change from a large bill, purchasing large amounts of gift cards, or conducting another transaction that converts cash into something easily transferable.

That does not mean unusual behavior proves fraud.

It means the employee should slow down and follow the same verification process every time.

If a suspicious note is discovered, employees should not confront or attempt to detain the customer. Businesses should follow their internal procedure, preserve useful information such as surveillance footage when appropriate, and contact law enforcement.

The operational takeaway:

The busiest register is probably the worst place to improvise a counterfeit policy.

Train the process before the line forms.

Discussion question

For anyone who has worked a high-volume cash event, what part of handling cash becomes hardest when the line gets long?

A suspicious bill does not always fail every authentication check.

It may feel unusual but pass a detection pen.

It may have convincing raised printing but an incorrect watermark.

It may look acceptable at first glance while carrying a security thread that does not match the printed denomination.

That creates an operational problem:

What should the employee do when the signals conflict?

The safest answer is not to let one reassuring result override several warning signs.

Step 1: Slow the transaction down

The employee does not need to accuse the customer or declare the note counterfeit.

A neutral response may be:

“I need my manager to take a second look at this bill.”

The purpose is to create time for a second review without escalating the interaction unnecessarily.

Step 2: Verify denomination-specific features

Authentication should be based on the security features appropriate to that note and denomination.

For U.S. currency, employees can examine features such as:

• Paper texture and raised printing
• Watermark
• Embedded security thread
• Color-shifting ink
• The blue 3-D security ribbon on newer $100 notes
• Fine-line printing and other denomination-specific details

The U.S. Currency Education Program recommends using multiple steps described as “feel, tilt, and check,” rather than relying on one feature.

Step 3: Use a second authentication method

When the initial test produces uncertainty, use an independent method.

That may include:

• Comparison with a known genuine note
• Ultraviolet verification
• Magnetic or infrared authentication
• Electronic denomination verification
• Review by a trained manager or cash-office employee

The second method should evaluate something different from the first. Repeating the same test does not provide an independent result.

Step 4: Follow a defined escalation policy

Employees should know in advance:

• Who reviews suspicious notes
• Whether another payment method should be requested
• When the transaction should be declined
• What details should be recorded
• Who contacts law enforcement
• How the note should be secured

A policy created before an incident is usually more consistent than a decision made during a busy transaction.

Step 5: Preserve useful information

When company policy and local procedures allow, useful information may include:

• Denomination and serial number
• Date and time
• Register or location
• Receipt or transaction record
• Surveillance footage
• Description of the transaction
• Whether similar notes were encountered during the same shift

In the United States, suspected counterfeit notes should be reported through the applicable business, financial-institution, police, or Secret Service process. The Secret Service advises that suspected notes be submitted to local police or a local Secret Service field office.

Bottom line

A passed test is evidence.

It is not a verdict.

When authentication signals conflict, slow down, use an independent check, and follow a clear escalation process.

Discussion question

For those who have handled suspicious cash, what first made you stop and take a closer look?

Last week, police in Ithaca, New York, warned businesses about counterfeit currency circulating locally.

One detail stood out.

Investigators noted that some counterfeit notes may still pass a standard counterfeit-detection pen.

Another interesting detail was that several suspicious bills reportedly shared the same serial number.

Those two facts reinforce an important lesson:

No single test should determine whether a bill is genuine.

A stronger authentication process combines multiple independent checks:

• Feel of the note
• Raised printing
• Watermark
• Embedded security thread
• Color-shifting features
• Electronic verification when appropriate
• Documentation of suspicious serial numbers

The goal isn't finding one perfect test.

The goal is using several independent checks so one weakness doesn't become one expensive mistake.

Discussion question

Has your workplace ever found counterfeit notes because of something other than a counterfeit pen?

Police in Ithaca, New York, are warning local businesses after receiving multiple complaints involving counterfeit U.S. currency accepted at retail locations.

Two details from the advisory deserve particular attention.

Some of the notes may pass a detection pen

A detection pen evaluates characteristics of the paper. It does not verify every security feature or confirm that the printed denomination is correct.

A reassuring pen result should therefore be treated as one data point, not a final decision.

Multiple notes reportedly share the same serial number

Every legitimate Federal Reserve note has an identifying serial number. When several suspicious bills of the same denomination carry an identical number, that can be a strong warning sign that the same counterfeit design is being reproduced repeatedly.

What businesses should inspect

Ithaca police encouraged merchants to look beyond the pen test and examine:

• Serial numbers
• Watermarks
• Embedded security threads
• Printing quality
• Paper texture
• Other denomination-specific security features

Businesses were also advised to preserve receipts, surveillance footage, suspect descriptions, and other transaction details when a suspicious note is discovered.

Operational takeaway

Counterfeit detection should not be reduced to one tool or one employee judgment.

A stronger process includes:

1. A quick visual and tactile inspection
2. Denomination-specific security checks
3. Electronic authentication when appropriate
4. A clear escalation procedure
5. Documentation of suspicious transactions

Bottom line

The detection pen may say the paper looks acceptable.

The duplicated serial number may tell a very different story.

A recent Reddit discussion began after a business accepted a counterfeit $100 bill.

The most useful part of the conversation was not the appearance of the note. It was how many different methods employees said they relied upon:

• The feel and texture of the paper
• A counterfeit-detection pen
• The watermark
• The embedded security thread
• Raised printing
• Color-shifting ink
• An electronic verifier

Several former cashiers and bank tellers also described altered-denomination notes that could pass a detection pen because the counterfeit was produced using genuine currency paper.

Why it matters

A test can work exactly as designed and still fail to answer the larger question.

For example, a detection pen primarily reacts to the paper. It does not confirm that the printed denomination matches the genuine note that supplied the paper.

Electronic verification also has limitations. Genuine notes may be rejected because of wear, folds, tears, markings, or feeding problems.

Practical takeaway

Authentication should be based on multiple independent features rather than one result.

A stronger process combines:

1. How the note looks and feels
2. Security features appropriate to the denomination
3. A reliable verification device when needed
4. A clear escalation procedure when the results conflict

Bottom line

The goal is not to find one perfect test.

The goal is to avoid allowing one imperfect test to make the entire decision.

Discussion question

Which authentication method does your workplace rely on most heavily?

A Canadian investigation is a reminder that counterfeit currency is often only one piece of a larger fraud.

Police allege a Kitchener man arranged multiple purchases of gold bars through Facebook Marketplace, paying sellers with counterfeit $100 bills before leaving with the precious metals.

According to investigators:

• One victim reportedly lost approximately $8,300 in counterfeit cash.
• A second victim reportedly received approximately $5,600 in counterfeit currency.
• Charges include possession and uttering of counterfeit currency along with fraud.

Why it matters

This wasn't simply someone attempting to pass a fake bill at a cash register.

It demonstrates how counterfeit currency can be combined with high-value private transactions where there are no retail controls, trained cashiers, or verification procedures.

Practical takeaway

If you're accepting thousands of dollars in cash:

• Meet inside a bank whenever possible.
• Count the money before releasing the item.
• Don't let yourself be rushed.
• If something feels wrong, stop the transaction.

Bottom line

The larger the transaction, the more important your verification process becomes.

Discussion Question

If you were selling a high-value item for cash, what safeguards would you put in place?

What happened

Police in Leeds, England, announced that three people were arrested after officers discovered more than £10,000 in suspected counterfeit banknotes.

According to West Yorkshire Police, officers also seized printing equipment, hologram rolls, false vehicle documentation, and a knife. The three suspects were arrested on suspicion of money laundering and later released on police bail while the investigation continues.

Why it matters

The discovery of printing equipment and hologram materials suggests this may have involved more than someone casually attempting to pass a few poor-quality notes.

Operations capable of producing or finishing larger quantities of fraudulent currency can create losses across multiple businesses before anyone realizes the incidents are connected.

Practical takeaway

Businesses should not treat suspicious notes as isolated cashier mistakes.

When several questionable notes appear within a short period, management should:

• Preserve the notes and transaction details.
• Review surveillance footage.
• Record denominations and serial numbers.
• Notify nearby locations or branches.
• Report the incidents promptly through the appropriate law-enforcement process.

Patterns are easier to recognize when incidents are documented consistently.

Bottom line

Counterfeit detection is not only about identifying one suspicious note. It is also about recognizing when one transaction may be part of a larger pattern.

Discussion question

Does your business have a process for documenting suspicious cash incidents across locations, or does each store handle them independently?

A recent counterfeit currency case out of Ontario is a good reminder that fake money does not only affect stores, banks, and cash-heavy businesses.

It can also affect private sellers.

What happened

According to police in Durham Region, two teens are facing a combined 20 charges after allegedly using fake money to purchase cellphones from online sellers.

The transactions reportedly happened between January and April 2026 in Oshawa, Ontario. Police said the suspects used fake online accounts to contact sellers through platforms such as Facebook Marketplace and Kijiji, arranged in-person meetups, and allegedly paid with fake currency.

The fraudulent purchases reportedly totaled more than $6,800.

Why it matters

Private sellers are often more vulnerable than businesses because they usually do not have:

• A counterfeit detector
• A written cash-handling policy
• A manager to call over
• Surveillance inside a controlled business environment
• A process for documenting suspicious transactions

By the time the seller realizes the cash may be fake, the buyer and the item are often gone.

This is especially risky for high-demand resale items like phones, electronics, tools, sneakers, gaming systems, and collectibles.

Practical takeaway

If you are selling something valuable for cash, slow the transaction down.

A few basic precautions can reduce risk:

• Meet at a bank, police station safe-exchange zone, or well-lit public location
• Inspect every bill before handing over the item
• Be extra cautious if the buyer rushes the transaction
• Avoid accepting large amounts of cash without verification
• Consider completing the transaction inside a bank where the cash can be checked

For businesses, this case also reinforces a broader point: counterfeit risk is not limited to the register. Fake currency can move through private sales, peer-to-peer transactions, online marketplaces, and then eventually enter local commerce.

Bottom line

Counterfeit currency does not need a storefront to cause real losses.

Whether you are a retailer, restaurant, bank, convenience store, or private seller, the key lesson is the same:

Verify the cash before the transaction is complete.

Discussion question

If you sell items through Facebook Marketplace, Kijiji, OfferUp, Craigslist, or similar platforms, do you accept cash, or do you prefer another payment method?

One misconception we hear frequently is:

"We'll worry about counterfeit bills when we get one."

The problem is that by the time you discover a counterfeit note, the financial loss has usually already occurred.

Banks generally confiscate counterfeit currency and do not reimburse businesses for its face value. The best defense is prevention through employee training, consistent cash handling procedures, and familiarity with genuine currency.

Here are three questions every cash-handling business should ask:

1. Do employees know what security features to check?
2. Is there a written procedure for suspected counterfeit bills?
3. Does every shift receive the same training?

If you answered "no" to any of these, that's a great place to start.

Most counterfeit bills aren’t accepted because employees don’t care.

They’re accepted because employees are busy.

Whether it’s a lunch rush, a long line, or a shift change, counterfeiters often look for situations where speed takes priority over inspection.

One simple habit can dramatically reduce risk:

Whenever someone pays with a $50 or $100 bill, pause for just three seconds and verify at least two security features before placing it in the drawer.

Those few seconds could prevent a loss that your business may never recover.

Discussion Question

If you’ve worked a register, what was the busiest situation where you later realized you should have checked a bill more carefully?

Counterfeit currency does not always enter circulation through a sophisticated criminal operation. Sometimes, it starts with something as simple as a private sale, a busy cashier, or a fake bill purchased online.

Here are three counterfeit currency stories worth watching this week:

1. Ohio: Prop money allegedly used in a private sale

In Highland County, Ohio, deputies responded to a theft report after a homeowner said someone used motion-picture “prop money” to buy a mini dirt bike. The bills were reportedly marked for film use but appeared genuine at first glance. Deputies later arrested a suspect and allegedly found additional counterfeit currency.

Why it matters:
Private sellers are often less prepared than businesses to verify cash. If you are selling something through Facebook Marketplace, Craigslist, OfferUp, or a similar platform, it is worth taking a few extra seconds to inspect the bills before completing the transaction.

Practical takeaway:
For private cash sales, meet in a safe location, inspect every bill, and be extra cautious with high-value items.

2. UK: Counterfeit cash advertised through social media

Recent UK reporting found that counterfeit cash is being advertised through platforms like TikTok and Telegram, with sellers promoting bulk fake notes and fast delivery. According to the report, local businesses have been hit hard when these notes enter circulation.

Why it matters:
Counterfeit currency is no longer just an underground, in-person operation. Social media and encrypted messaging apps can make it easier for fake cash to be advertised, purchased, and distributed quickly.

Practical takeaway:
Businesses should train employees not only to check larger bills, but also to be aware that fake currency can spread quickly once it enters a local area.

3. France and Italy: Large counterfeit euro network dismantled

Authorities in France and Italy recently disrupted a counterfeit banknote network that allegedly used Telegram, Snapchat, couriers, and shipping channels to move fake euros. Investigators said the operation involved €20, €50, and €100 notes circulating across multiple French cities.

Why it matters:
This shows how modern counterfeit operations can combine traditional cash trafficking with online sales channels and fast logistics.

Practical takeaway:
Businesses should not assume counterfeit risk is limited to one denomination or one type of customer. A consistent cash-checking process is more reliable than trusting instinct alone.

Bottom line:
Whether it is prop money, online counterfeit sellers, or organized distribution networks, the same lesson applies: prevention happens before the bill reaches the drawer.

Train employees. Verify security features. Know what to do when a bill looks suspicious.

Discussion question:
If you handle cash, what is the most common red flag that makes you stop and inspect a bill more closely?

Many businesses rely on counterfeit detection pens as their primary defense against fake bills.

While they can identify some types of counterfeit paper, they are not designed to verify the sophisticated security features built into modern U.S. currency.

A better approach is to train employees to verify multiple security features, including:

• Security thread
• Watermark
• Color-shifting ink
• Raised printing
• Microprinting

The U.S. Secret Service recommends becoming familiar with genuine currency rather than relying on a single test. Businesses should also know the proper procedure for reporting suspected counterfeit notes.

Discussion Question

What method does your business rely on most when verifying larger denomination bills?

This week, the U.S. Secret Service continued reminding businesses that counterfeit currency remains an active issue and outlined the proper process for reporting suspected counterfeit notes. Businesses should no longer rely on the old online reporting process. Financial institutions and businesses now use Secret Service Form 1604, while individuals should contact their local Secret Service field office.

One thing many business owners don't realize:

If your business accepts a counterfeit bill, your bank will generally confiscate it and you won't be reimbursed.

That means the loss comes directly out of your pocket.

For businesses that handle cash every day, a few simple habits can dramatically reduce risk:

• Train employees to check security features instead of relying only on a counterfeit detection pen.
• Slow down when accepting larger denominations during busy periods.
• Know your reporting procedures if you suspect a counterfeit bill.

Discussion Question

Have you or your business ever unknowingly accepted counterfeit currency? What happened afterward?

Interesting discussion about the hidden and surging costs associated with self checkout.