What to Do If You Get a Counterfeit Bill

The presence of counterfeit currency within the economy is a serious concern, impacting individuals and the broader financial system. Counterfeit money is illegal, and its circulation can lead to financial losses for those who unknowingly accept it. Understanding how to identify and properly handle suspected fake bills is important for protecting personal finances and contributing to the integrity of the nation’s currency.

Recognizing a Counterfeit Bill

Identifying genuine U.S. currency involves examining several security features designed to deter counterfeiting. Authentic bills possess a distinct texture, different from regular paper, crisp and slightly raised due to the printing process. You can feel the texture of the ink, particularly in areas like the portrait’s vest. Real U.S. bills also contain tiny red and blue fibers embedded within the paper, which counterfeiters sometimes try to replicate by printing or drawing them on the surface. Close inspection reveals these are printed on the surface of fake bills, not integrated into the paper.

Holding a bill up to light can reveal a security thread, a plastic strip running vertically, with text matching the bill’s denomination. Watermarks, which are faint images visible when held to light, are another security feature; for newer bills, the watermark should match the portrait on the bill. Color-shifting ink is present on denominations of $5 and higher, where the numeral in the lower right-hand corner changes color when the bill is tilted. Additionally, genuine bills feature clear, distinct microprinting, which is tiny text that appears sharp even under magnification.

Steps to Take When You Encounter a Suspected Counterfeit

Upon suspecting a bill is counterfeit, there are immediate actions to take to preserve evidence and avoid legal complications. It is important not to return the bill to the person who passed it, as doing so could inadvertently involve you in illegal activity. Instead, you should limit handling of the bill to prevent smudging fingerprints or other potential evidence. Place the suspected counterfeit bill into an envelope or a plastic bag for safekeeping.

While handling the bill minimally, observe and note details about the individual who presented the bill, if it was a direct transaction. This includes physical characteristics, any accompanying individuals, or vehicle descriptions and license plate numbers. Additionally, record the date, time, location, and how you received the bill. These details are important for law enforcement investigations.

Formal Reporting Procedures

After securing a suspected counterfeit bill and noting relevant details, the next step involves reporting it to the appropriate authorities. Individuals should contact their local police department or the nearest U.S. Secret Service field office. These agencies are responsible for investigating counterfeit currency cases. For businesses or financial institutions, specific procedures may involve using Secret Service Form (SSF) 1604 for reporting.

When reporting, provide all the information you gathered, including the circumstances under which you received the bill and any descriptions of the individual who passed it. You will need to surrender the suspected counterfeit bill to law enforcement. When a bill is identified as counterfeit and surrendered, it becomes evidence in an investigation and is not reimbursed.

What Happens After Reporting

Once a suspected counterfeit bill is reported and submitted to law enforcement, it becomes part of an official investigation. The U.S. Secret Service, which has jurisdiction over counterfeit currency, will examine the bill to confirm its authenticity and trace its origin. The surrendered bill is retained as evidence, and it will not be returned to the individual who reported it.

Individuals who report counterfeit currency do not receive compensation for the loss of the bill’s face value. This policy prevents the reintroduction of counterfeit money into circulation. The investigation aims to identify and apprehend counterfeiters, protecting the broader financial system from further compromise.