This year there has been a spate of counterfeit discoveries in Nova Scotia, one of Canada’s eastern Maritime Provinces. Merchants in the Halifax area have reported several instances of fake Canadian and US bills showing up, most recently in the Halifax suburb of Dartmouth.

A September 11, 2018 news release by the Halifax Regional Police reported by Global News, a Canadian television network, said there were multiple reports of counterfeit $100 American bills being used at local businesses since late August. Earlier in the year Global News also had stories of counterfeit US and Canadian bills being passed elsewhere in the Halifax area.

A Widespread Problem

In March, bogus US 100s were circulating in the New Glasgow, Nova Scotia area. That same month, the Royal Canadian Mounted Police, Canada’s FBI equivalent, warned businesses in the neighboring province of New Brunswick about counterfeit Canadian $50 bills that were found in the area.

While the most recent bills have turned up in the Maritime Provinces, the counterfeits aren’t limited to that part of the country. Over the summer, Canadian counterfeits in $100, $50 and $20 denominations have appeared in the Calgary area and at various places in Ontario.

How Counterfeiters Operate

To maximize their chances of successfully passing the fake money, counterfeiters usually target smaller businesses where employees may not be as well trained in detection and busy stores and restaurant drive-throughs where even trained staff may be too rushed to check.

They pay for inexpensive items with a large bill and pocket both the change and merchandise, leaving before the employee has a chance to notice something’s wrong. Even with video surveillance, the crime may be hard to investigate since the fraud may not be detected on a timely basis and memories may be clouded or camera footage erased.

Recognizing Counterfeits

The quality of counterfeit bills ranges from amateurish to nearly perfect. Small-time operators don’t usually have the sophistication or equipment to produce good fakes, and their work is easy to spot…if you look for it. The ink may rub off, security features are poorly reproduced or missing, and the paper—or polymer in the case of Canadian bills—may be easily detected as being “off’ to the touch.

But sometimes counterfeiters go to great lengths to reproduce bills that are hard to detect and even fool experts. That was the case with notorious counterfeiters Wesley Weber and Wayne Victor Dennis who made millions running counterfeiting operations in Canada and the US before they were caught. The police said that the fake US 100s circulating in New Glasgow were “very realistic and authentic.”

Protecting Against Counterfeits

While accepting counterfeit money isn’t a crime, passing it along may be. And if you take it, you’re out the money, so avoiding it in the first place is the best protection.

If you think you’ve been given a counterfeit, you’re probably within your rights to refuse it and ask for a replacement. If a customer has left you a bill you suspect, call the police and have it checked.

The best defense is learning how to spot counterfeit money and applying that knowledge. The US Secret Service has a downloadable PDF that shows the security features of US currency in detail. Similar information is available from authorities in Canada and other major countries.

Is Collecting Counterfeits Legal?

Since our audience is mostly coin and currency buffs, some of you may be wondering if there’s a collectible market for counterfeits and if it’s legal.

The simple answer to both questions is yes, but there are conditions, not the least of which is that the money must be clearly identified as counterfeit. But there are collectors of counterfeit money and we’ll explore the topic in future blogs.

Stay tuned!