Counterfeit Money Risk Management

While I was at a local convenience store recently, a clerk had a confrontation with a customer over a questionable $100 bill. The clerk was using a counterfeit detecting pen. While the bill appeared to be legitimate, the pen indicated it was a counterfeit. The customer made a scene and stormed out of the store. Who knows if the bill was legitimate or not.

It got me thinking about the proper steps to take if you suspect that a bill is counterfeit. The following is from the US Treasury Department's "Know Your Money" website (http://www.ustreas.gov/usss/know_your_money.shtml):

If You Receive a Counterfeit Bill:

• 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. These numbers can be found on the inside front page of your local telephone directory.
• Write your initials and the date in the white border areas of the suspect note.
• Limit the handling of the note. Carefully place it in a protective covering, such as an envelope.
• Surrender the note or coin only to a properly identified police officer or a U.S. Secret Service special agent.

I'd add a comment or two about personal safety.

The clerk in my example returned the hundred dollar bill to the customer. Given the temperament of the customer, there was a better than good chance that the confrontation would have turned physical if the clerk had not return the bill. I doubt that the clerk had the proper level of training to really tell if the bill was real or not.

All things considered, I would have returned the bill too. I probably would have added a comment like, "I'm sorry I can't accept this bill. Perhaps this pen is defective. Sorry, I'll lose my job if I accept it."