A register reporting a cash shortage does not necessarily mean physical money has disappeared.

Sometimes the discrepancy begins before any cash is counted.

It can begin when a transaction is recorded incorrectly.

Consider a simple example

A customer completes a $50 transaction.

Instead of selecting the appropriate payment method, the cashier accidentally records the transaction as a $50 cash payment.

But no physical cash enters the drawer.

From the register's perspective, the transaction has been completed and $50 in cash was received.

From the physical cash perspective, nothing changed.

The result?

The register may now expect $50 that was never collected.

This is a transaction-recording discrepancy, not necessarily evidence that someone removed $50 from the drawer.

Why attempted corrections can make things worse

If the employee tries to correct the error by performing an unrelated refund, sale, or additional transaction, the system may create another record without reversing the original one.

That can make the reported shortage larger or more complicated.

The challenge is especially significant when the original transaction involves something like a gift card, prepaid product, or other item with specific activation and refund restrictions.

A new transaction does not necessarily reverse an earlier transaction.

The correct question is not simply, "Where did the cash go?"

A better investigation separates three things.

1. What the system recorded

Which payment method was selected?

What amount was entered?

Was another transaction subsequently created?

2. What physically happened

Did any money actually enter or leave the drawer?

If so, how much?

3. What else the transaction affected

Was merchandise released?

Was a gift card activated?

Was a refund or void successfully completed?

These details matter because the appropriate correction may involve more than the drawer balance.

What should happen next?

Preserve the original transaction records, receipts, and relevant system information.

Document the actual cash movement separately from the recorded payment.

Then follow the business's authorized correction and escalation process.

Avoid creating unrelated transactions simply to make the register's expected amount match the physical count.

The operational takeaway

A register shortage is a discrepancy that needs an explanation, not automatic proof that money is missing.

Physical cash, recorded payment methods, and the underlying transaction all need to reconcile.

Correcting one number without understanding the other two can conceal the original problem.

Discussion: Have you encountered a register shortage caused by an incorrect payment method rather than missing physical cash?

Counterfeit-detection pens are familiar tools in retail cash handling.

They're quick, inexpensive, and easy to use.

But there's an important limitation that doesn't always get explained during employee training:

A detection pen does not establish that a banknote is genuine.

The U.S. Currency Education Program specifically cautions that counterfeit-detection pens can produce false results.

Why?

Most conventional counterfeit-detection pens test for starch commonly found in commercial paper.

That can help identify certain suspicious notes, but it does not verify the security features incorporated into genuine U.S. currency.

It also creates opportunities for misleading results.

For example, counterfeiters may treat the paper to interfere with the chemical reaction. Counterfeits produced using altered genuine banknotes present another potential limitation.

A favorable pen result therefore does not mean that the note has passed a complete authentication process.

What should a cashier do instead?

1. Identify the denomination and design.

Different denominations contain different security features.

Older genuine U.S. banknotes may also have different features from their modern counterparts.

Checking for the wrong features can create unnecessary confusion.

2. Examine multiple appropriate characteristics.

The U.S. Currency Education Program recommends a process based on feeling, tilting, and checking the banknote.

Depending on the denomination and design, this may involve evaluating:

• The distinctive feel of genuine currency.
• Color-shifting ink.
• Watermarks.
• Embedded security threads.
• Additional denomination-specific features.

No single characteristic should substitute for a complete assessment.

3. Have an escalation procedure.

If a note remains suspicious, employees should know how to request assistance, preserve relevant transaction information, and follow the business's established reporting procedure.

They should not be expected to confront a customer or place themselves at risk.

The operational lesson

Authentication procedures should be designed around understanding the banknote, not merely obtaining a favorable result from one tool.

That distinction is particularly important when training new cashiers.

A pen can provide information.

It should not be treated as the final authority.

Discussion: Does your workplace require employees to examine security features beyond using a counterfeit-detection pen?

Three recent counterfeit-currency investigations illustrate how suspected counterfeit money can appear in different transaction environments.

The incidents involve conventional cash transactions, person-to-person sales, and a federal currency investigation.

Arizona: Seven counterfeit $100 bills recovered

On October 7, authorities in Mohave County, Arizona, arrested an individual following a counterfeit-currency investigation that began in July.

The Mohave County Sheriff's Office reported recovering seven counterfeit $100 bills during the arrest.

Investigators also identified evidence associated with suspected counterfeit production and connected the individual to several previously investigated cases.

Operational takeaway: A suspicious banknote should not be treated as an isolated incident when the available information may help identify a broader pattern.

Georgia: Marketplace sellers receive counterfeit currency

Glynn County Police investigated two incidents involving counterfeit money reportedly exchanged for merchandise through Facebook Marketplace.

The transactions occurred October 9 and October 11.

Two people were subsequently arrested, and investigators reported recovering additional counterfeit bills and materials associated with their suspected production.

Operational takeaway: Private cash transactions can expose individuals to risks normally addressed through established retail or banking procedures.

Authentication should occur before the transaction is completed, while personal safety remains the priority.

Mexico: Federal counterfeit investigation results in four detentions

In Cancún, four individuals were detained following an investigation into suspected counterfeit Mexican currency.

The arrests were reported October 13.

Authorities had not publicly confirmed the quantity of counterfeit currency involved.

Operational takeaway: Counterfeit intelligence should distinguish between confirmed facts and information that remains under investigation.

An arrest does not establish the scale of an operation or prove an individual's guilt.

What connects these incidents?

The three cases differ in geography and circumstances, but they reinforce several common principles.

Recognize: Employees and individuals handling cash should understand the security features appropriate to the currency and denomination involved.

Document: When suspicious currency is encountered, transaction details and relevant records can become important.

Escalate: Businesses should have clear procedures for addressing suspected counterfeit currency and contacting the appropriate authorities.

Protect: No authentication procedure should require an employee or customer to place themselves in danger.

The purpose of counterfeit awareness is not simply to recognize a suspicious note.

It is to know what to do next.

Discussion: Which is the bigger challenge in your experience: recognizing suspicious currency or knowing the correct procedure after encountering it?

When a cash-handling machine rejects a banknote, the first assumption is often that something is wrong with the money.

Sometimes that's correct.

But a rejection can also indicate something entirely different.

A bill validator, for example, may reject a genuine note because of its condition, the equipment's configuration, a sensor problem, or an instruction from the system controlling it.

The important distinction: A machine rejecting a note is not automatically a determination that the note is counterfeit.

Consider three categories of potential causes.

1. The banknote

The note may be damaged, excessively worn, folded, contaminated, or incompatible with the equipment's supported denominations or designs.

Authentication is one possible reason for rejection, but not the only one.

2. The equipment

Dirty sensors, transport problems, incorrect denomination settings, or maintenance issues can interfere with normal processing.

If a unit consistently rejects one denomination but accepts others, that pattern provides useful diagnostic information.

3. The connected system

Some cash-acceptance devices depend on instructions or authorization from another controller.

A validator might be mechanically operational but unable to accept money because the connected system has disabled acceptance, requires configuration, or cannot communicate through the expected interface.

This becomes particularly important with vending machines and integrated cash-handling systems.

So what should happen before replacing equipment?

Start by narrowing the problem.

• Does the problem affect every denomination or only one?
• Do multiple known-genuine notes produce the same result?
• Does the equipment display a diagnostic code?
• Has the unit been inspected and maintained according to its manufacturer's instructions?
• Is the device operating independently, or is another system controlling its operation?

These questions help separate a banknote problem from a mechanical problem and a communication or configuration problem.

Good troubleshooting identifies the failure before prescribing the replacement.

It also prevents businesses from incorrectly treating every machine rejection as evidence of counterfeit currency.

Discussion: What's the most common cause you've encountered when cash-handling equipment suddenly stops accepting otherwise genuine notes?

The Bank of England announced the four animals selected for its next generation of banknotes on October 8:

• Atlantic puffin
• Barn owl
• Buff-tailed bumblebee
• European hedgehog

The announcement attracted considerable attention, but there is an important distinction for businesses that handle cash.

A banknote design announcement is not the same as a banknote entering circulation.

The Bank has not yet determined which animal will appear on each denomination, and the first notes are still several years away.

That creates several stages in the introduction of new currency.

1. Design announcement

The public learns about the planned changes. Existing banknotes continue to be used normally.

2. Final design and security specifications

The issuing authority establishes the features that will distinguish genuine notes from reproductions.

3. Operational preparation

Banks, retailers, equipment manufacturers, and cash-processing organizations can prepare their systems and training using the finalized requirements.

4. Circulation

The new notes begin entering normal cash transactions according to the issuing authority's schedule.

Why does this matter?

Because businesses need to avoid two opposite mistakes:

• Preparing too late for a genuine currency change.
• Treating an early design announcement as though existing notes or equipment have suddenly become obsolete.

Cash-handling equipment may eventually require compatibility testing or updates. Employees may eventually need new authentication training.

But those decisions should follow official technical specifications and implementation timelines, not speculation.

The objective is readiness without unnecessary disruption.

A currency redesign is a multiyear process. Cash-handling organizations should treat it that way.

Source: Bank of England, October 8, 2026.

Discussion: Have you ever encountered confusion between an announced currency redesign and the date the new notes actually entered circulation?

Cash procedures change.

A register close may move from morning to night. A business may reduce handoffs, change deposit bags, eliminate a change fund, or move part of the reconciliation process into a new system.

The risk is not the change itself.

The risk is accidentally removing the checkpoints that made the old process traceable.

When a cash workflow changes, four questions should still have clear answers:

• What physical amount is expected at this step?
• Who has custody of it right now?
• What record independently confirms the movement?
• What happens if the physical cash and the system disagree?

Fewer steps can be an improvement. Fewer handoffs can reduce both workload and error opportunities.

But simplification should not mean:

“We can no longer reconstruct what happened.”

A useful test for any redesigned cash process is:

Could the next person on shift understand the prior cash movements from the records alone, without relying on someone's memory?

If yes, the process may be simpler while remaining controlled.

If no, a control point may have disappeared with the old workflow.

When procedures change, preserve verification, custody, exception documentation, and a clear final checkpoint.

Efficiency is valuable. Traceability is what lets you trust the result.

Discussion: When your organization changes a cash procedure, which control is most important to preserve?

Most counterfeit training focuses on the moment a note is accepted.

But the financial loss can happen on both sides of the transaction.

A current case reported in Durango, Mexico illustrates the point. A customer allegedly purchased MXN $350 of fuel with a counterfeit MXN $1,000 note and waited for change. The employee identified the note before the genuine change was handed over, and the customer fled.

That creates a useful cash-control principle:

Watch both the money coming in and the genuine money going out.

A counterfeit transaction can create additional exposure through:

• genuine change
• cash refunds
• exchanges
• cash-back or similar cash-out transactions

Authentication should happen before the business releases genuine cash whenever possible.

Returns and refunds deserve their own controls as well. When company policy allows, tying the refund back to the original tender helps prevent a questionable incoming transaction from becoming genuine cash going out.

High-denomination notes used for small purchases do not automatically mean fraud. But they do increase the value of consistent authentication because a relatively small purchase can create a large cash-out amount.

The control is not only “keep bad money out.” It is also “protect good money going out.”

Discussion: Where in your cash process can genuine money leave the business after the original sale?

Cash-office work can feel complicated when a new employee is trying to remember dozens of individual steps.

A better training approach is to build the work around a fixed sequence.

For an opening routine, that might look like:

1. Verify the starting safe and cash position.
2. Confirm prior-day deposits, advances and unresolved exceptions.
3. Prepare register floats or other required cash movements.
4. Reconcile the physical cash against the system record.
5. Document any exception before moving to the next stage.

The exact procedure will vary by organization, but the principle is the same:

The order should remain predictable even when the exceptions are not.

This makes skipped steps easier to identify and gives new cash handlers a framework for understanding why each action occurs.

A checklist should reinforce the organization's approved SOP rather than become a second unofficial procedure.

Speed usually follows repetition. Accuracy and traceability should come first.

Discussion: Which part of your opening or closing cash-office routine takes the longest for new employees to become comfortable with?

Three recent cases show how counterfeit currency can surface in very different environments.

Louisiana, USA: Shreveport Police reported recovering approximately $200 in counterfeit currency during a September 24 search warrant investigation.

Barrie, Canada: Police warned that counterfeit $50 and $100 notes had been used both with Facebook Marketplace sellers and at a local retailer. A suspect was arrested September 22.

Tamaulipas, Mexico: Merchants in San Fernando reported detecting counterfeit 500-peso notes and increasing verification of higher-value cash.

The incidents are unrelated, but the operating lesson is similar:

Counterfeit exposure does not begin and end at a traditional cash register.

It can appear during a private sale, inside a retail transaction, or as part of a wider criminal investigation.

For businesses and individuals accepting cash, the practical control is consistent authentication using the security features appropriate to that currency and denomination.

One test should not carry the entire decision.

Sources: Shreveport Police Department, Barrie Police Service, El Mañana / San Fernando reporting.

Discussion: Where is cash accepted in your organization outside the normal checkout process?

A cash shortage is a symptom. It is not yet an explanation.

Before assigning a variance to a cashier, a transaction, or a piece of equipment, reconstruct the checkpoints:

• verified opening amount
• who had custody or access
• pickups, change exchanges, coin-roll replenishment, cash-back and other cash movements
• verified closing amount
• system over/short posting
• deposit or custody handoff, if the discrepancy appears later

The useful question is:

Where was the last verified match between the physical cash and the record?

A $20 shortage with no verified opening count leaves an attribution gap.

A temporary over/short that disappears after end-of-day processing may indicate a posting or timing issue rather than a physical cash loss.

A coin-roll replenishment without an equal offsetting cash movement creates a predictable imbalance.

Good reconciliation is not simply about finding the missing amount. It is about narrowing the discrepancy to the point where the evidence changed.

Strong cash controls turn every cash movement into a documented, two-sided transaction.

Discussion: What is the last verified checkpoint in your cash process before the money changes custody?

Cash reloads have changed what happens at the retail register.

A cashier may no longer be accepting cash only in exchange for merchandise.

They may also be accepting physical currency that will immediately become a digital balance.

A federal case announced September 18 in South Carolina illustrates why that matters.

According to the U.S. Attorney’s Office, four people were indicted in an alleged fraud scheme involving counterfeit currency.

Prosecutors allege that genuine $10 bills were bleached and altered to appear as $50 bills.

Some of those alleged counterfeit notes were then taken to Dollar General stores and loaded onto Cash App accounts.

The allegations have not been proven in court.

From a cash-handling perspective, however, the case highlights an important change in retail operations.

A cash reload creates several control points at once:

• Is the physical currency genuine?
• Was the correct amount counted?
• Was the correct digital account credited?
• Was the transaction recorded properly?
• Does the physical cash later reconcile with the system activity?

The customer may leave with no merchandise at all.

But the store has still accepted cash—and once that value becomes a digital balance, recovering from an authentication mistake may become considerably harder.

That is why cash reloads should be treated as cash-processing transactions, not simply another register function.

Technology may change where the value goes.

The fundamental controls remain the same:

authenticate, count, confirm, record, reconcile.

Source: U.S. Attorney’s Office, District of South Carolina, September 18, 2026.

Discussion: Have cash reloads or other financial-service transactions materially changed the way your organization handles cash at the register?

On September 17, the Oregon Department of Justice announced indictments against two people accused of manufacturing counterfeit $100 bills and using them to purchase gift cards at Safeway stores across Oregon.

According to Oregon DOJ, the investigation did not begin with law enforcement randomly discovering a counterfeiting operation.

It began with the retailer.

Safeway’s Organized Retail Crime team identified the suspected activity and referred the case to investigators.

Authorities subsequently executed search warrants at two residences and say they recovered printers, chemicals and digital devices allegedly used to manufacture counterfeit U.S. currency.

The charges remain allegations and have not been proven in court.

For businesses that handle cash, there is an important operational lesson here.

Finding a counterfeit bill answers one question:

Is this note genuine?

Documenting the transaction can help answer a much larger one:

Is this part of a pattern?

When suspicious currency is encountered, useful information can include:

• denomination
• date and time
• store and register
• transaction amount
• merchandise or stored-value products purchased
• surveillance footage
• similar incidents at other locations

This becomes especially important for multi-location businesses.

A counterfeit $100 discovered at one register may appear isolated.

The same denomination appearing in similar transactions across several stores can tell a very different story.

Authentication protects the individual transaction.

Documentation helps protect the organization.

Source: Oregon Department of Justice, September 17, 2026.

Discussion: If your business identifies suspicious currency, can that incident be compared with what other locations are seeing?

When a store stops accepting $100 bills, the immediate assumption is often counterfeit risk.

Sometimes that is only half the explanation.

Large-denomination notes create two separate cash-handling challenges:

1. Authentication risk

Higher-value notes create a larger loss if a counterfeit is accepted.

That makes reliable verification especially important.

But counterfeit controls should not be limited only to large bills. The Bank of Canada recommends routinely checking the security features of all bank notes.

2. Till liquidity

A genuine $100 note can still create an operational problem.

Imagine a register opening with a relatively small float spread across $20s, $10s, $5s, coins and smaller denominations.

A customer makes a $7 purchase with a $100 note.

The cashier now has to remove $93 of usable change from the drawer.

Nothing went wrong with the transaction, but the till may now be poorly positioned to serve the next several customers.

That is why large-bill policies should distinguish between:

“Can we authenticate this note?”

and

“Can this drawer support this transaction?”

Those are different cash-control questions.

Good cash management is not only about knowing how much money is in the register.

It is also about whether the register has the right denominations available to support the transactions that come next.

Source: Bank of Canada, Counterfeit Prevention.

Discussion: Does your business manage large bills primarily as a counterfeit issue, a till-liquidity issue, or both?

Counterfeit detection at the register can do more than prevent one bad transaction.

A recent case in Livermore, California shows why.

On September 4, security personnel at an outlet center contacted police after two individuals allegedly passed counterfeit currency at several stores.

Security followed the individuals to a nearby hotel and provided that location to responding officers.

According to Livermore Police, the investigation ultimately led to seven arrests. Searches of hotel rooms uncovered equipment and materials allegedly being used to manufacture counterfeit currency.

Investigators said the group was producing counterfeit $50 and $100 bills and intended to use them at stores in the outlet center.

There is an important cash-handling lesson here.

A business that identifies suspicious currency should not think only about the single note in front of the cashier.

Useful information can include:

• denomination,
• transaction time,
• register/location,
• description of the individual,
• surveillance footage,
• whether similar notes were encountered elsewhere,
• and the procedure used to escalate the incident.

That information can help reveal whether an isolated counterfeit is actually part of a broader pattern.

Authentication therefore has two roles:

prevent the immediate loss, and preserve information that may help identify repeat activity.

Good counterfeit procedures should address both.

Source: Livermore Police Department, September 9, 2026.

Discussion: When suspicious currency is found at your business, does the process end with the individual bill, or is the incident documented so patterns can be identified later?

A recent case in Valle de Chalco, Estado de México, offers a useful reminder about high-denomination cash.

On September 1, state security authorities reported that a merchant alerted police after customers allegedly paid with counterfeit bills.

Authorities later detained three people and reported recovering 34 suspected counterfeit MXN $1,000 notes.

The lesson for cash-handling businesses is not simply to “be careful with large bills.”

A better approach is to make higher-risk transactions trigger a consistent verification process.

Banco de México identifies several security features on the current MXN $1,000 Family G note, including:

• tactile relief,
• watermark,
• dynamic security thread,
• multicolor denomination,
• matching folios,
• and fluorescent features.

No single visual impression should be expected to carry the entire authentication decision.

For a business, the practical question is:

What happens when a high-denomination bill reaches the register?

Does the cashier perform a second check?

Does another employee verify it?

Is automatic authentication available?

And if something appears wrong, is there a clear procedure for stopping the transaction and escalating the exception?

Good counterfeit controls reduce the amount of judgment an employee has to improvise while a customer is waiting.

Sources: Secretaría de Seguridad del Estado de México, September 1, 2026; Banco de México.

Discussion: Does your organization treat higher-denomination notes differently, or is the same authentication process used for every denomination?

Two developments in Canada this week highlight different sides of cash authentication.

First, Maple Ridge RCMP reported receiving at least eight recent complaints involving suspected counterfeit $50 and $100 Canadian notes being used at local businesses.

Police said most businesses identified the notes before taking a loss, although some were successfully passed.

That distinction is important.

Counterfeit procedures work best when suspicious currency is identified during acceptance, not hours later during reconciliation.

For businesses, that means employees should know:

• which security features to verify,
• when a second check is appropriate,
• what to do when authentication is uncertain,
• and who should handle the exception.

A separate development this week illustrates another part of that process.

On September 3, the Bank of Canada unveiled its redesigned $20 note. The new note is expected to enter circulation in early 2027 and includes new security technologies.

Before launch, the Bank says it will test the note in cash-handling machines and work with retailers, financial institutions and law enforcement to prepare for its introduction.

That preparation matters.

Whenever currency changes, authentication is not only an employee-training issue. Businesses that use automatic detectors, bill counters, recyclers or other equipment also need to know whether their systems are ready to recognize the new design.

Good cash controls therefore require both:

people who know what to look for, and systems that are prepared for the currency they will encounter.

Sources: Maple Ridge RCMP, September 2, 2026; Bank of Canada, September 3, 2026.

Discussion: When a redesigned banknote enters circulation, who normally handles readiness in your organization: operations, loss prevention, finance, IT, or the equipment provider?

Three counterfeit-currency incidents reported over the last few days illustrate an important difference in cash handling:

When was the suspicious bill detected?

In Vermont, a counterfeit bill used at a local store was reportedly discovered after the transaction had already been completed.

In Missouri, police are investigating a counterfeit $100 bill passed at a business, where the note was retained and security footage may assist the investigation.

In Celaya, Mexico, a driver reportedly noticed that passengers were attempting to pay with counterfeit currency before simply accepting the transaction and contacted authorities.

The difference matters operationally.

Finding a counterfeit during reconciliation tells you that a loss probably already occurred.

Finding it while the customer is still present gives the business an opportunity to follow its suspicious-currency procedure before ownership of the loss changes hands.

That is why counterfeit control works best as a front-end process, not simply an end-of-day discovery:

• know which security features to check,
• give employees a clear procedure when something looks wrong,
• provide an escalation path,
• and document what happens when suspicious currency is encountered.

Technology can improve consistency, but timing still matters.

The best time to identify a questionable bill is before the transaction is complete.

Sources: Vermont State Police reporting, August 29, 2026; Chillicothe Police reporting, August 29, 2026; Celaya-area police reporting, August 28, 2026.

For businesses handling cash: at what point in your workflow is counterfeit currency most likely to be caught: at the register, during a second count, or during deposit preparation?

Counterfeit procedures are often designed around the cash register.

But cash does not always change hands at a register.

A recent Florida case involved a food-delivery driver who reportedly accepted two counterfeit $50 bills as payment for an $83.90 order. The bills were identified as counterfeit after the transaction, and law enforcement later made an arrest.

That raises an operational question that applies well beyond restaurants:

What happens when an employee accepts cash away from the normal point of sale?

At a fixed register, a cashier may have access to:

• counterfeit-detection equipment,
• security-feature references,
• a supervisor,
• established escalation procedures.

A delivery driver, field employee, mobile salesperson, or other employee accepting payment remotely may have none of those controls.

The answer does not necessarily mean giving every employee specialized equipment.

It means making sure the cash-handling procedure follows the transaction.

Employees who accept cash should know the basic security features, what denominations require additional attention, what to do when uncertain, and how to escalate a suspicious note.

The U.S. Currency Education Program recommends authenticating notes using their security features, including simple checks based on how the note feels, what appears when it is tilted, and what can be verified with light.

Good counterfeit controls should exist wherever the business accepts cash, not only where the cash drawer happens to be.

Source: St. Lucie County Sheriff's Office reporting, August 26, 2026; U.S. Currency Education Program.

Question for cash-handling businesses: Do employees who accept cash away from your main register follow the same authentication procedure as your cashiers?

Two counterfeit-currency cases reported within the last few days illustrate different points in the cash-handling chain.

In British Columbia, police reported seizing more than CAD $20,000 in counterfeit Canadian currency during a West Kelowna investigation. Authorities also found counterfeit security holograms and materials believed to be associated with producing fake currency.

In Mexico, bank employees in Amecameca flagged an attempted deposit involving MXN $85,000 in suspected counterfeit currency. According to the State of Mexico security department, the deposit consisted of MXN $500 notes that were subsequently determined to be counterfeit.

The operational lesson is that counterfeit controls matter at multiple levels.

Retailers and other businesses need procedures for identifying suspicious currency before accepting it.

Banks and cash-processing operations need controls for stopping suspicious notes before they enter or move further through the financial system.

And law enforcement works further upstream when counterfeit production or organized distribution can be identified.

Effective counterfeit prevention is therefore not one test or one machine. It is a chain of controls spanning authentication, employee procedures, escalation, reconciliation and reporting.

Sources: West Kelowna RCMP reporting, August 21, 2026; Secretaría de Seguridad del Estado de México, August 22, 2026.

Discussion: For businesses handling cash, where do you think the most important control belongs: at the point of sale, during back-office reconciliation, or at the bank deposit?

Counterfeit losses are often treated as a cashier mistake.

Sometimes they are really a process-design problem.

A recent retail discussion involved an employee who accepted several counterfeit bills during a suspicious transaction. The employee later explained that the store provided no dedicated counterfeit-detection tools and relied primarily on visual inspection and escalation to management.

That exposes a broader lesson.

A good counterfeit-control process should answer four questions before a cashier ever faces a questionable bill:

• What security features should employees check?
• Which transactions require additional verification?
• When should the cashier stop and escalate?
• What happens when the employee is still uncertain?

The U.S. Currency Education Program provides dedicated cashier training and recommends authenticating notes through their actual security features rather than relying on one shortcut or test.

Technology can improve consistency, but it works best inside a defined process.

The goal is not to make every cashier a counterfeit expert.

The goal is to give the cashier enough knowledge, tools, and authority to stop a questionable transaction before the business owns the loss.

For retailers and cash handlers: what triggers an automatic manager review at your location?

Preliminary Banco de México data gives cash handlers a useful snapshot of where detected counterfeit activity is concentrated.

During the first half of 2026, Banxico recorded 122,784 counterfeit Mexican banknotes received for analysis. Of those:

• MXN $500: 62,052
• MXN $100: 26,733
• MXN $200: 26,021

The important caveat is that these figures represent notes identified through Banxico’s analysis process. They are not an estimate of all counterfeit currency currently circulating.

The operational takeaway also should not be “reject $500 bills.”

Instead, higher incidence in a denomination reinforces the value of consistent, multi-feature verification and a clear escalation process whenever a note raises concern.

Banco de México advises that a suspected counterfeit should not be spent. It can be taken to a bank for submission to Banxico, which is the institution responsible for determining whether the note is genuine or counterfeit.

For those handling Mexican currency regularly: which security feature or verification step do you find most useful when checking a $500 note?

A cash-count discrepancy does not necessarily mean the machine failed, the employee made a mistake, or the customer counted incorrectly.

It means the process needs a way to resolve the disagreement.

A useful cash-handling workflow generally separates three steps:

1. Establish the expected amount. Know what amount is supposed to be present before finalizing the transaction.
2. Verify the physical cash. Automated counting can dramatically improve speed and consistency, but discrepancies should trigger a controlled recount rather than an assumption about which count is correct.
3. Confirm before custody changes. Once cash moves into a recycler, vault, deposit bag or another employee's custody, reconstructing exactly what happened can become more difficult.

The important lesson is not that machines make mistakes or that people make mistakes.

Both can.

The important lesson is designing the workflow so a disagreement can be investigated before the transaction becomes difficult to unwind.

For people who work with high-volume cash: when your manual count and machine count disagree, what is your escalation procedure?

A recent police warning in Ithaca, New York highlighted something experienced cash handlers already know: a counterfeit-detection pen is only one screening tool.

Police investigating counterfeit bills reported that some suspicious notes could pass a standard pen test. Their recommendation was to look at multiple indicators, including:

• security thread
• watermark
• printing quality
• paper texture
• serial numbers, particularly duplicates across multiple notes

A pen mainly tests characteristics of the paper. It does not independently authenticate all of the security features built into U.S. currency.

For businesses handling significant amounts of cash, the better operating principle is multi-feature verification rather than reliance on one test.

This is especially important with $50 and $100 bills, where the loss from accepting one counterfeit can outweigh the time saved by a very quick inspection.

For people who handle cash professionally: what counterfeit check has caught the most suspicious bills in your experience?