What to Do if You Receive Counterfeit Money (2024)

FAQs

What to Do if You Receive Counterfeit Money? ›

Contact your local police department or United States Secret Service

Report Counterfeit Currency

Visit the Secret Service website to complete a Counterfeit Note Report or contact your local U.S. Secret Service field office. (Note: You must send the Counterfeit Note Report to your local U.S. Secret Service field office. Visit the U.S. Secret Service website for more information.)

The requirement that a person act with “intent to defraud” is intended to protect people who unknowingly receive counterfeit money and then try to use it to buy something. An individual who unknowingly used counterfeit money is probably not guilty under federal law.

Federal Reserve Banks do not accept deposits of counterfeit or unlawfully altered currency or coin. Depository institutions (DIs) that have questions about where to forward suspect counterfeit currency can visit the "Report Counterfeit Currency" page (Off-site).

Sadly, there is little immediate relief for the person who ends up with funny money, and who then reports it so as to comply with counterfeit money laws. The government does not replace your money with a genuine bill during an investigation, so your primary options to recoup losses are insurance policies.

You have the legal right to a refund if you've bought something that's fake or counterfeit. You can also report the seller to Trading Standards or report the seller for fraud.

Report suspected counterfeit currency to your local authorities. Law enforcement agencies, banks and cash processors will submit suspected counterfeit currency to the Secret Service through our USDollars website.

If you are a customer and have been passed a forged bank note in your change, hand the forged bank note into the local police station and give the details, if at all possible, of where you were given it. The police will keep the note as evidence.

Do not return it to the passer. Delay the passer if possible. Observe the passer's description, as well as that of any companions, and the license plate numbers of any vehicles used. Contact your local police department or United States Secret Service field office.

Making or using fake money is a serious crime that can get you up to 20 years in jail. Both federal and state laws punish counterfeiting, and fines can be very high. You must know the money is fake to be guilty; if it's an accident, you might not be charged.

What happens if you accidentally deposit counterfeit money? ›

In the USA, however, fake banknotes will be removed from your account. You will have to get in contact with the police and explain how and where you got this counterfeit money. If they find out you tried to deposit fake notes willingly, you will face legal actions and can even be jailed.

While ATMs have mechanisms to detect counterfeit money, sophisticated counterfeiters may still manage to deceive the machines. Engaging in the act of depositing counterfeit money in an ATM constitutes a serious crime in most jurisdictions.

Security Thread

Hold the note to light to see an embedded thread running vertically to the left of the portrait. The thread is imprinted with the letters USA and the numeral 100 in an alternating pattern and is visible from both sides of the note. The thread glows pink when illuminated by ultraviolet light.

Both the Federal government and local State governments can impose penalties on an individual for using or attempting to use counterfeit money. Under Federal law, if a prosecutor can prove the intent to commit fraud or forgery, an individual can be sentenced up to 20 years of incarceration on top of a hefty fine.

So if you unwittingly hand a cashier a counterfeit bill, the cashier might call the police. The police could likely arrest you even if you deny knowing the cash was counterfeit. The issue of knowledge and intent might not come up until later, such as during plea negotiations or trial, if charges move forward.

Examine the holograms or color-shifting images: Some newer U.S. notes, have holograms or color-shifting images that change when you tilt the bill. Be cautious of irregularities: Look for any irregularities, such as blurred or uneven printing, missing security features, or unusual colors.

The anti-counterfeiting laws passed by Congress state that whoever, with intent to defraud, falsely makes, forges, counterfeits, or alters any obligation or security of the United States can be imprisoned for up to 20 years.

Inform the bank about the fake note received from the ATM, and the bank will verify the details and update you about a refund.