Combating Counterfeit Currency

Arnold Ramirez
January 4, 2010 | COMMENTS

Manufacturing counterfeit United States currency or altering genuine currency to increase its value is a violation of Title 18, Section 471 of the United States Code and carries a punishment of a fine or imprisonment for up to 15 years, or both. Although counterfeit and altered genuine currency is not as prolific in the United States as it is in other countries, the act of passing counterfeit or altered currency still occurs on a regular basis.

U. S. currency is designed with many security features ranging from water marks to micro-printing, including the most recognizable and thus most effective feature: the paper on which the currency is printed (a makeup of 25 percent linen and 75percent cotton). Still, counterfeit and altered currency does reach the teller counter every now and then.

Counterfeit and Altered Currency

If your credit union comes across counterfeit or altered currency, do not return the note/item to the passer. If possible, delay the passer and observe his or her description and that of any companions. Keep in mind the passer maybe the counterfeiter or a victim of a counterfeiting scam, so it is paramount to resist making assumptions about the passer in order to avoid a problem with safety or member service. You will also need to gather any information from the passer, such as to the source of the counterfeit or altered currency.

Contact

If the person surrendering the note knows from whom he or she received it, or has any information about the passer or the passer's automobile, a representative of the credit union should immediately contact local authorities, preferably the local field office of the United States Secret Service. Contact information for the Secret Service may be found inside the front page of a local phonebook or on the Secret Service website at www.secretservice.gov. If no information is available, the note should be mailed to the local field office of the Secret Service on the day it is received. Be sure to maintain any vital information about the person surrendering the note in order to reimburse him or her if, in fact, the note is determined to be genuine and unaltered currency.

Handling

The moment you become reasonably suspicious of the authenticity of the currency, it ceases to be “currency” and becomes evidence and should be handled accordingly. The teller and the person surrendering the note should date and initial each counterfeit or altered item with ink in the border areas of the note for identification. Otherwise, limit the handling of the item and carefully place it in a protective covering, like an envelope or folder. The counterfeit or altered currency should only be surrendered to a properly identified police officer or a U.S. Secret Service special agent.

Forms

The credit union will need to file a Counterfeit Note Report (SSF 1604) for each note and submit two copies of the report with each note. The credit union may complete a third copy of the report for its own records. Only the reporting form made available by the Secret Service may be used for this purpose. The report form can be downloaded from the Secret Service website.

Arnold Ramirez is a research and information consultant for the California and Nevada Credit Union Leagues. This article was reprinted with permission from Credit Union Digest, the publication of the California and Nevada Credit Union Leagues.