What to do if you get a fake note, what's the punishment for offence related to counterfeit currency? (2024)

FAQs

What to do if you get a fake note, what's the punishment for offence related to counterfeit currency? ›

Penalties for Counterfeiting Money

Possession of a counterfeit item is a type of forgery punishable by up to 3 years in jail. If you violate Penal Code 475 possession of counterfeit items, then you are guilty of forgery, which is punishable by by imprisonment in a county jail for no more than one year if the forged item does not exceed $950.

It stipulates that whoever counterfeits currency notes or banknotes shall be punished with imprisonment for a term that may extend to life or with a term of imprisonment which may extend to 10 years, along with a fine.

Yes, you can actually be arrested for using counterfeit money, even if you didn't know it was fake. Both the federal government and local state governments impose penalties on an individual for using or attempting to use counterfeit money.

Reporting Suspected Counterfeit Currency

If you are an individual, submit suspected counterfeit currency to your local police department. Police departments, banks, and cash processors will submit suspected counterfeit currency to the Secret Service.

Counterfeiting is a crime involving the theft of someone's trademark. Businesses – both small and large – use trademarks to help consumers like you identify their products. A trademark is most often a word, phrase or symbol that identifies the source or origin of a particular good or service sold in commerce.

As noted, under 18 U.S.C. 471, it's a federal offense to make, alter, or counterfeit any security or obligation belonging to the United States of America, which includes currency, treasury notes, reserve notes, and bonds. Numerous federal statutes prohibit counterfeit currency creation, distribution, or use.

Punishment for federal Counterfeiting can result in felony charges punishable by up to 20 years in federal prison and/or a fine up to $250,000. A judge will determine your sentence based on your conduct, criminal history, and whether restitution needs to be ordered to any victim (and how much, if any!).

Penalties for Counterfeit Merchandise

Under federal law, any individual who knowingly distributes, wholesales, or sells counterfeit merchandise faces substantial penalties: Imprisonment for the first offense up to 10 years and up to 20 years for repeat offenders.

What can I do if I get a fake note? ›

In case you are still not satisfied with the genuineness of the note, you may approach the bank to confirm it. If it turns out to be a fake note, the bank will impound it. You can also go to the nearest police station and inform them about it.

Will my bank replace fake money? Banks can, at their discretion, replace fake money received by their customers, but they are unlikely to do so. It makes little difference where the counterfeit came from — a store, an individual, or an ATM. In most cases, you'll end up writing off the loss.

It is an offence to knowingly possess counterfeit banknotes. Suspect banknotes should be given to State or Federal police. It is important to note that counterfeits have no value – you will not be reimbursed. If they prove to be genuine banknotes, you will receive full value for them.

Both the federal government and local state governments impose penalties on an individual for using or attempting to use counterfeit money. Under federal law, if a prosecutor can prove your criminal intent to commit fraud or forgery, an individual can be sentenced up to 20 years of incarceration on top of a hefty fine.

So if you unwittingly hand a cashier a counterfeit bill, the cashier might call the police. The police could likely arrest you even if you deny knowing the cash was counterfeit. The issue of knowledge and intent might not come up until later, such as during plea negotiations or trial, if charges move forward.

If they find out you tried to deposit fake notes willingly, you will face legal actions and can even be jailed. If you know you have fake banknotes on your hands, please, do not try putting them in an ATM – this is a penal action with serious legal consequences in some countries.

The maximum penalty if the court believe it was to be used as genuine currency is 10 years imprisonment (s. 14(1)Forgery and Counterfeiting Act 1981.) Where there is no intent to pass is off as genuine is 2 years imprisonment. (s 14 (2) Forgery and Counterfeiting Act 1981).

Any individual that makes or begins to make counterfeit money is guilty of an indictable offence and liable to a maximum sentence of 14 years imprisonment.

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.

Creating Counterfeit U.S. Currency

Under section 471 of the U.S. Criminal Code, “whoever, with intent to defraud, falsely makes, forges, counterfeits, or alters any obligation or other security of the United States, shall be fined under this title or imprisoned not more than 20 years, or both.” 18 U.S.C. § 471.