Money counters can help businesses and law enforcement agencies more readily detect counterfeit currency. This is increasingly becoming a problem across the U.S. In the past, counterfeiters needed a large printing press and could only produce a significant quantity of high-value bills at once. However, current printer technology has enabled people to make passable imitations of currency at home. Additionally, many of these people are printing small-dollar bills.
Home counterfeiting on the rise
In fact, unlikely suspects were recently arrested for counterfeiting: high school students. Five teenagers from New Milford School in New Jersey printed $1,000 in $5 and $20 bills using a home printer and some thick resume paper, according to NorthJersey.com. The fake bills were used at convenience stores to buy snacks. Currency experts say one of the ways amateur counterfeiters are detected is because they get complacent and use the fake currency close to home on multiple occasions.
The increasing incidents of illegitimate money being circulated highlight the need for better methods of detecting this risk. Because more people are printing small bills and using them for basic purchases, businesses may be less likely to immediately detect them right away, and this can lead to losses down the road.
What businesses and financial institutions can do to protect themselves
Cash is still one of the most commonly used payment channels. As soon as fake bills are passed once, the problem may be on the business or bank rather than the individual who made the illegitimate currency. Counterfeiters will attempt to pass fake money in exchange for real cash. When businesses attempt to deposit these bills, they will not get paid if the bank detects the currency is fake. Financial institutions are required by law to hold counterfeit bills. Because small bill counterfeiting is becoming more common from low-tech operations with laserjet printers, it may not have as big of an impact. However, $50 and $100 fake bills are still common, and this can be more problematic for businesses.
Because inadvertently accepting large-value counterfeit bills could seriously harm a company's revenue, cash counters are a worthwhile investment. Businesses can select different technology based on their needs, including basic magnetic detection or more advanced serial number scanning. This can prevent organizations from accepting fake bills, minimizing their financial risks.
June 3, 2014