Can you spot a bogus bill? What are banks doing to prevent the distribution of counterfeit bills? What should you do if you think you may have received a counterfeit bill?

These are all good questions. Counterfeit currency is a concern for countries around the world, including Canada.

Identifying Counterfeit Currency

The Bank of Canada is responsible for issuing Canadian currency and developing security features to prevent counterfeiting. They recommend that people familiarize themselves with the security features on Canadian currency and check their bills whenever they receive them. They also note that checking for security features is quick and simple and only takes a few seconds so here are a few things to look for on the new $10, $20, $50 and $100 notes:

• A holographic stripe that changes colours as you tilt the note.
• A watermark portrait that you can see when you hold the note to the light.
• A colour-shifting security thread woven into the paper that shifts from gold to green as you tilt the note.
• A see-through number (the irregular marks that form a perfectly-aligned number when you hold the note to the light).
• Raised ink that you can detect when you run your fingers over the front of the note. The ink on the large number, the portrait, the coat of arms and the words "Bank of Canada" will feel thicker to the touch.

The Bank of Canada's website has some excellent diagrams and examples as well as downloadable brochures and articles for the general public on counterfeiting.

What the Banks are Doing

As banks process the currency they receive, they are always looking for counterfeit bills. It would be pretty rare to receive a counterfeit note from a bank, but it can happen. Unfortunately, no test or check for counterfeit bills is 100% accurate.

Many bills go through central processing centres where the banks have sophisticated equipment used to detect counterfeit bills. When you consider that banks process hundreds of millions of dollars of cash each day, counterfeit bills don't get through very often. As well, branch staff are trained to look for notes that are suspicious or that don't contain the proper security features.

What To Do If You Get a Bogus Bill

So what do you do if you think you have been passed a counterfeit note? The Bank of Canada recommends that you:

1. Stop the transaction and ask for another note and, if possible, also keep the suspect note.
2. Contact the local police.
3. Make a note of the details of how you received the note.
4. Give the note only to police and always request a receipt.

The unfortunate reality is that you may be stuck with a counterfeit bank note and lose the value of that note if you don't catch it in time. The vast majority of counterfeit notes tend to be $5 and $10 denominations, however.

If you receive a counterfeit bill from a bank, you should keep the transaction record and turn the bill in to the bank you received it from immediately. While looked at on a case-by-case basis, people will likely be reimbursed for the counterfeit currency they turn in if it is determined that they received it from that bank.

For more fraud prevention tips, or to download the CBA's free booklet, Safeguarding Your Money, visit the Fraud and Security section of the Canadian Bankers Association website. Booklets are also available by mail by calling 1-800-263-0231.

Canada's banks take the issue of privacy, security and fraud prevention very seriously. They work hard to prevent their operations and customers from being used for any kind of financial crime and to raise awareness about the ways that customers can protect themselves.

As a consumer, you also have an important role to play in preventing fraud. This month we'll be taking a look at ways to recognize counterfeit currency and what to do if you receive a counterfeit bill.