counterfeit money

[genrex]

I'm hesitant to post this, but I figure this affects all of us one way or another.

The other day I walked into my local bank, a nice small bank where everyone knows each other and greets each other on a first-name basis. After concluding my transaction with the teller, I asked him, "Just out of curiosity, why don't I ever hear about counterfeit money anymore? It used to be in the news once or twice a week, but now I never hear about it anymore. Is counterfeit money no longer a problem?"

He looked at me with a shocked look. All conversation in the bank lobby stopped. Dead silence, no smiles. All the bank employees and customers were looking at me. The teller chose his words carefully. He said, "If you said that in a bank where people don't know you, an alarm would be activated, and you would probably be interviewed by the police before you left the building." He continued, "Counterfeit money is a HUGE problem for us. It's because of the economy."

I was completely surprised by what he said. I said, "I'm sorry, I had no idea" and after an embarrassed pause, I said goodbye. I was expecting to have a typical light conversation, but obviously it had turned into something quite different.

I wonder who ultimately pays the price for counterfeit money -- do our local businesses "lose the money" when they try to deposit it at the bank, or do the businesses and banks get reimbursed by the FDIC?

I had no idea this was such a big problem.

_

[Racerbvd]

Originally Posted by genrex

I'm hesitant to post this, but I figure this affects all of us one way or another.

The other day I walked into my local bank, a nice small bank where everyone knows each other and greets each other on a first-name basis. After concluding my transaction with the teller, I asked him, "Just out of curiosity, why don't I ever hear about counterfeit money anymore? It used to be in the news once or twice a week, but now I never hear about it anymore. Is counterfeit money no longer a problem?"

He looked at me with a shocked look. All conversation in the bank lobby stopped. Dead silence, no smiles. All the bank employees and customers were looking at me. The teller chose his words carefully. He said, "If you said that in a bank where people don't know you, an alarm would be activated, and you would probably be interviewed by the police before you left the building." He continued, "Counterfeit money is a HUGE problem for us. It's because of the economy."

I was completely surprised by what he said. I said, "I'm sorry, I had no idea" and after an embarrassed pause, I said goodbye. I was expecting to have a typical light conversation, but obviously it had turned into something quite different.

I wonder who ultimately pays the price for counterfeit money -- do our local businesses "lose the money" when they try to deposit it at the bank, or do the businesses and banks get reimbursed by the FDIC?

I had no idea this was such a big problem.

_

Yes, we do That is why I have a marker to check bills, and my Hot-Rod sells raffle tickets at car shows, we check bills so yes, it is a big problem.

[genrex]

This is really awful. Businesses just trying to stay in business...

[Racerbvd]

Originally Posted by genrex

This is really awful. Businesses just trying to stay in business...

That is why you look for fake bills, protect yourself. I even take the marker to swap meets..

[Crowbob]

It's all counterfeit isn't it? There's nothing behind it so it's just paper. Isn't it?

[szyzygy]

Originally Posted by Crowbob

It's all counterfeit isn't it? There's nothing behind it so it's just paper. Isn't it?

Yep. Fiat currency. Ben Bernanke et al are the biggest robbers of all time!

[legion]

Back when I was a bank teller, from '94 to '97 in Naperville, we'd see a counterfeit bill at my branch maybe twice a year, and I never saw one personally. The procedure was to give it to the supervisor, I know that documentation was done, and the Secret Service was eventually called. I don't think the people who "passed" the bills were ever even aware they were counterfeit until they got interviewed. The had been a few (obvious) fakes in the area at the time that were made by some teenagers with a photocopier.

A far bigger problem we had at the time was the sealed bill packs we ordered from other banks were coming in "light".

I have toured a few Federal Reserve branches on multiple occasions and they would tape their counterfeit bills to the windows of the counting room. I recall seeing about $20 million (rough guestimation) in 20's on a table and half a dozen fakes discovered in the batch.

I wonder how the modern fakes are being made? Back a long time ago, making fakes required a printing press and a skilled engraver. Analogue photcopiers can make fakes, but tend to distort the image in ways that make it pretty obvious. All digital photocopiers are supposed to have software to detect when currency is being copied and leave traces that the bill isn't real.

There have long been rumors (going back at least 15 years) of North Korea producing nearly perfect $100 bill counterfeits, and that was supposed to be one of the drivers of the bill redesign. I never understood how that would solve the problem, as we do not ever devalue old currency.

[szyzygy]

This story reminds me of when I asked my high school physics teacher, brother phillip neri of the xaverian brothers, if it was true that he worked on the manhattan project. Rumors were that he did, so one day in the shop of the school, I asked him about it, expecting a to hear a good story. Instead, he screamed at me that "10's of thousands of people were vaporized in an instant!" He was very upset but then immediately regained his usual calm disposition. As a 17 year old kid, I felt bad and apologized and he told me to not worry about it.

[HarryD]

While funny money is a real issue, I always have to smile when I see the clerk whip out the pen and test the bill. All they are really doing is finding out if the money is printed on ordinary paper vs the material they use for real money. If you are willing to endure some pain, try this:

Take a few twentys and iron them with some spray starch.

Hand to clerk and allow to test with pen. It will test positive.

Watch reaction of clerk doing the test.

Read here to see why the test is almost worthless: Midwest Fraud Prevention - Counterfeit Detection Units

[LeeH]

Around here, garage sale buyers have been known to try and pass really bad fake $100 billls. Twice I've come to a garage sale where the sellers were laughing about how bad the fakes looked.

[wdfifteen]

How do those markers work?

[sc_rufctr]

Interesting thread but... I hope the North Korean rumour isn't true.

[sammyg2]

Not a rumor.
North Korea's Counterfeiters | Politics | Vanity Fair

[jyl]

The New $100 Bill and the War Against Counterfeit Money - WSJ.com

Interesting article on counterfeiting.

[GH85Carrera]

Originally Posted by jyl

The New $100 Bill and the War Against Counterfeit Money - WSJ.com

Interesting article on counterfeiting.

Everytime the TV news shows have a story about the treasury thay show a stock footage clip of the new $100s on the production line.

I have yet to even see one of those new bills in person.

[Joeaksa]

When I was flying in Russia we would see them from time to time, but its not an issue over there.

[BK911]

I have a counterfeit $1.
Why would anybody counterfeit a $1?

[Mark Henry]

Your money is so behind on security features, your "new" $100 notes are working with tech that's 30 years old.

The new Canadian $50's (and very soon $100) are plastic, they are going to be hard to copy, but you know someone will try. Several other countries are moving to plastic money, I know Australia is one that has plastic notes.

Bank Notes - Bank of Canada

[Drdogface]

A guy in Thailand, a local, tried to buy a stereo from me one night with a handful of fake 20's. They were so crappy and paper so thin it was beyond obvious. I called him on it and he just ran out of my house leaving me with this pile of paper...and no stereo. I had if for a while just as conversation piece.

[Groesbeck Hurricane]

Years ago in Houston my FIL went outside to see what the commotion was. He talked a bit to the SS agent and went back inside. FIL is a bit gutsy and the guy must have liked him.

They were stuffing the neighbor's oldest into a nice vehicle, loading ALL computer equipment (EVERYTHING) from the house into two SUVs. They were going through the attic, every room, every closet, everything! The house was left a MESS.

Kid got a few Federal years for counterfeiting, a few State years for stealing all the equipment from his employer (walked out the back door of worst buy apparently), and his folks (17 charged as adult) got stuck with some large bills.

It is happening everywhere, even middle class America.