As a CFO, you need to prioritize strategies that will protect your company’s bottom line. You might have already implemented processes to protect against internal theft, robbery, and shrink, but one other area of protection might have slipped through the cracks: you might not have a sound counterfeit protection plan.
Counterfeit protection is critical—here’s why.
Everyone’s at Risk
Any business that accepts hard currency is at risk of becoming a victim of counterfeit fraud. Whether you work for a retailer, a bank, a casino, a restaurant, or any other establishment that accepts cash as payment, then your counterfeit protection plan needs to be a priority.
Counterfeit money is an issue that plagues the business world as a whole, and not only large conglomerates. Small businesses are often targeted because counterfeiters know that they likely don’t have the same counterfeit protection plan in place as larger stores. And even those that aren’t targeted directed by counterfeiters can still come to accept counterfeit money through innocent shoppers who unwittingly accepted counterfeit at some other point during their day. These shoppers might pass on the counterfeit to you without even realizing it.
Counterfeiters Are Getting More Sophisticated
Training your employees to manually check bills for counterfeit is a great first line of defense. But, unfortunately, counterfeiters are becoming more sophisticated and manual detection may not be enough to spot fraudulent bills anymore.
Thanks to digital printing technology, counterfeiters no longer need complex printing presses, the right type of paper and ink, or printing plates to create fake bills. They can just use a high-tech printer to do their work. Not only is it easier and faster than ever before for them to create their counterfeit bills, but the bills are now even more sophisticated. Criminals can create near duplicates of authentic bills, which can easily pass as the real thing. Even if your employees check all bills and have sharp counterfeit detection skills, these sophisticated bills can slip through the cracks.
This is why your counterfeit detection plan needs to involve technology. Counterfeit detectors use infrared, magnetic, UV technology, and more to detect the security features on authentic bills—many that can’t be seen with the naked eye.
Counterfeiters Are Difficult to Catch
Counterfeit money is hard to trace back to its original source. Once the cash is in circulation, counterfeiters virtually never get caught, which means they’re free to continue their criminal activities. Even though the police have taskforces in place to catch them, it’s very difficult to do so. As such, counterfeiters continue to be an existing threat to business owners, and you need a counterfeit detection plan to protect your bottom line. In 2014, for example, over 60,000 fraudulent bills were confiscated by police in Canada—which really only makes up for a fraction of the real number of counterfeit bills in circulation. A counterfeit protection plan can make sure that you don’t become one of the thousand stores in Canada that accepts counterfeit.
It’s Your Loss
When you realize that you’ve accepted counterfeit cash at your business, you must report it to the authorities. Unfortunately, though, that doesn’t mean that you will be able to recoup the money. Once you’ve accepted the counterfeit cash, it becomes your loss to deal with. If you don’t prioritize your counterfeit protection plan and invest in counterfeit detectors, these losses can add up and start to affect your profits in a negative way. And in this competitive business market, you need every dollar you make in order to stay competitive and profitable.
With an effective counterfeit protection plan, you won’t have to accept these losses. Take action against counterfeit.