Counterfeit money remains a concern for Canadian businesses, and recent statistics suggest the problem deserves renewed attention.
According to the Royal Canadian Mounted Police (RCMP), 42,204 counterfeit Canadian banknotes were detected after entering circulation in 2025, an increase of nearly 88% compared with 2024. The total face value of those counterfeits reached approximately CAD $2.46 million.
Although counterfeiting remains relatively uncommon compared with the volume of genuine currency in circulation, these figures reveal a growing challenge for businesses that accept cash.
For retailers, restaurants, convenience stores, dispensaries, and other cash-intensive businesses, accepting even a single counterfeit bill can result in a direct financial loss.
As Canada approaches 2027, understanding counterfeit currency trends, recognizing the differences between Canadian and U.S. bills, and implementing effective verification procedures can help businesses protect themselves.
Counterfeit Money in Canada: What the Latest Statistics Reveal
The latest complete annual statistics published by the RCMP show a significant increase in counterfeit Canadian banknotes.
In 2025:
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42,204 counterfeit bills were detected after entering circulation, compared with 22,478 in 2024.
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154,622 counterfeit bills were seized by law enforcement before entering circulation, compared with 46,988 the previous year.
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CAD $2.46 million was the total face value of counterfeit banknotes detected in circulation, compared with approximately CAD $1.21 million in 2024.
These statistics represent completed 2025 reporting, the latest full-year national figures available as of October 2026.
The concern has continued into 2026.
In September 2026, the RCMP in Maple Ridge, British Columbia, warned businesses after receiving at least eight reports involving counterfeit $50 and $100 Canadian bills in approximately one month. Several businesses identified the suspicious currency, while others experienced financial losses.
These incidents highlight an important reality: Canada's advanced currency security features are effective only when businesses know how to verify them.
Which Canadian Bills Are Counterfeited Most Often?
Not all Canadian denominations are counterfeited at the same rate.
According to the RCMP's 2025 statistics, the denominations most frequently detected after entering circulation were:
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CAD $100: 18,933 counterfeit bills, representing approximately 45% of the total.
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CAD $20: 12,897 counterfeit bills, representing approximately 31% of the total.
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CAD $50: 5,449 counterfeit bills, representing approximately 13% of the total.
While the $100 remained the most frequently counterfeited denomination detected in circulation, the increase involving $20 bills deserves particular attention.
In 2024, authorities detected 2,911 counterfeit CAD $20 bills in circulation. By 2025, that number had increased to 12,897, a rise of approximately 343% in just one year.
This trend matters because the $20 is a widely used denomination in everyday cash transactions.
For a business processing hundreds of transactions daily, counterfeit exposure is not limited to large bills. Smaller denominations can also create significant losses, particularly when verification procedures are inconsistent.
How to Detect Counterfeit Canadian Dollar Bills
Canadian banknotes are made from polymer, a durable material that incorporates security features designed to be difficult to reproduce.
The Bank of Canada recommends four basic verification steps: feel, look, tilt, and flip.
1. Feel the texture:
Genuine Canadian polymer bills have a distinctive smooth texture and raised printing. Run your fingers over the portrait, large denomination number, and certain printed elements to check for the expected texture.
2. Look through the transparent window:
The large transparent window contains detailed metallic elements. On the widely circulated Frontiers series, the metallic portrait should match the main portrait, and the denomination numbers should correspond to the value of the bill.
3. Tilt the bill:
Security elements within the window should produce changes in color and appearance when tilted. Authentic holographic details are sharp and consistent.
4. Flip the bill:
Examine both sides of the note. The metallic portrait and other security features should maintain their expected detail and appearance when viewed from the reverse side.
These checks can help employees identify suspicious currency without specialized equipment.
However, recognizing security features requires familiarity with the different banknote series, and manually inspecting every bill can become challenging in a busy retail environment.
What About Counterfeit U.S. Dollars in Canada?
Canadian businesses accepting U.S. currency face an additional challenge.
Although both Canadian and American bills incorporate advanced security features, they use different materials and authentication technologies.
Canadian bills are primarily made from polymer, while U.S. banknotes are printed on a specialized cotton-and-linen paper.
The U.S. Currency Education Program identifies several important security features in modern American banknotes, including:
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Watermarks: Images visible when certain denominations are held against a light source.
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Security threads: Embedded features that can be examined visually and may fluoresce under ultraviolet light.
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Color-shifting ink: Printing that changes appearance when viewed from different angles.
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Specialized security elements: Such as the blue 3-D security ribbon on the current design $100 bill.
The applicable features vary by denomination and design series.
U.S. currency counterfeiting is also relevant to Canadian businesses.
In June 2025, the RCMP in Kelowna, British Columbia, issued a warning about counterfeit American $20 and $50 bills being used at local businesses.
The warning specifically highlighted risks for convenience stores, gas stations, restaurants, and other businesses where cash transactions are processed quickly.
For Canadian businesses serving international visitors or accepting payments in both currencies, the ability to authenticate CAD and USD is an important consideration when selecting counterfeit detection equipment.
Can One Counterfeit Detector Verify Both CAD and USD?
Yes. Certain automatic counterfeit detectors can authenticate Canadian and U.S. banknotes using a single device, provided they are configured to support both currencies.
Unlike simple visual inspection tools, automatic counterfeit detectors can analyze several banknote characteristics to help identify suspicious bills.
Depending on the device, these may include ultraviolet (UV), infrared (IR), magnetic (MG), image recognition, dimensional measurements, and other security checks.
Because Canadian and American bills use different security technologies, selecting a detector specifically configured for both currencies is essential.
For example, AccuBANKER offers automatic counterfeit detectors with CAD-compatible configurations:
The D480 uses seven counterfeit detection methods and provides visual and audible authentication alerts. Its automatic feeding system allows bills to be inserted in multiple orientations, and CAD is available as a selectable third currency alongside USD and EUR.
The D585 combines seven counterfeit detection methods with denomination recognition and value totaling. It is available in a USD-EUR-CAD configuration, making it an option for businesses processing both Canadian and American bills.
Both devices are designed to make banknote verification more efficient at the point of sale.
However, no detection technology eliminates counterfeit risk entirely. Effective protection also depends on employee training, correct currency configuration, proper equipment maintenance, and consistent cash-handling procedures.
Why Automatic Counterfeit Detection Matters for Canadian Businesses
Consider a convenience store where employees accept CAD $5, $10, $20, $50, and $100 bills throughout the day, along with occasional U.S. currency.
During busy periods, cashiers may have only a few seconds to verify a bill before completing a transaction.
Checking watermarks, examining holograms, and comparing security features requires attention and familiarity with each currency.
An automatic counterfeit detector can simplify that process.
Instead of relying exclusively on an employee's visual judgment, the device checks supported security characteristics and provides a result that helps the operator decide whether additional inspection is needed.
For businesses processing cash frequently, this approach offers several advantages:
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More consistent verification: Employees can follow the same procedure across transactions.
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Faster processing: Supported banknotes can be checked without manually examining each security feature.
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Multi-currency convenience: Properly configured equipment can accommodate CAD and USD without requiring separate detectors.
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Reduced exposure to fraudulent payments: Suspicious bills can be identified before they enter the cash drawer.
Automatic detection does not replace good cash-handling practices, but it can provide an additional layer of protection, particularly when employee experience or transaction volume varies.
2027 Outlook: Why $20 Bills Deserve Closer Attention
Looking ahead to 2027, one denomination deserves particular attention: the $20 bill.
According to the Federal Reserve Bank of Kansas City, the $20 is the most counterfeited U.S. banknote.
Canada is also experiencing a notable increase in counterfeit $20 bills, with detections in circulation more than quadrupling between 2024 and 2025.
These figures do not establish that Canada will follow the same counterfeiting patterns as the United States. However, they highlight why businesses should pay close attention to commonly handled denominations, not only high-value bills.
Another development is approaching.
In September 2026, the Bank of Canada announced its redesigned $20 banknote, featuring King Charles III and advanced security technology. The new note is scheduled to begin entering circulation in late February 2027.
The redesigned bill introduces additional security features intended to make counterfeiting more difficult.
However, whenever a new banknote enters circulation, employees and consumers must become familiar with its appearance and authentication features.
Image source: Bank of Canada.
That adjustment period could create opportunities for counterfeiters to exploit unfamiliarity, particularly in businesses where cash verification is inconsistent. This is a potential risk, not a prediction that counterfeiting will increase because of the redesign.
For businesses using counterfeit detection equipment, the transition also raises an important operational question: will existing devices recognize the new currency?
The Bank of Canada encourages businesses to contact their equipment suppliers regarding compatibility and potential upgrades ahead of new banknote releases.
For Canadian businesses, preparation should begin with employee education, equipment compatibility checks, and consistent verification procedures.
Four Ways Canadian Businesses Can Reduce Counterfeit Currency Risk
Protecting a business against counterfeit money does not necessarily require complicated procedures. A few consistent practices can make a meaningful difference.
1. Train employees to recognize security features
Use official resources from the Bank of Canada and the U.S. Currency Education Program. Focus on the denominations and currencies employees handle most frequently.
2. Verify all denominations, not just $100 bills
Although larger denominations can represent greater individual losses, counterfeit $20 bills are also a significant concern. A consistent verification policy helps reduce the risk of smaller bills being overlooked.
3. Choose equipment that supports your currencies
Businesses accepting CAD and USD should verify that their counterfeit detection equipment is designed and configured for both. They should also confirm whether updates may be required when new banknotes are released.
4. Establish clear procedures for suspicious bills
Employees should know what to do when a note fails verification or appears suspicious.
The Bank of Canada recommends politely refusing a suspected counterfeit during a transaction, requesting another form of payment, and informing local police. If a suspicious note has already been accepted, it should be turned over to the police for examination.
Frequently Asked Questions About Counterfeit Money in Canada
Are counterfeit Canadian bills increasing in 2026?
The latest complete national statistics show that counterfeit Canadian banknotes detected in circulation increased approximately 88% between 2024 and 2025. Local police warnings issued during 2026 indicate that counterfeit currency continues to affect businesses. Complete nationwide 2026 figures are not yet available.
What is the most counterfeited Canadian bill?
According to RCMP figures for 2025, the CAD $100 was the denomination most frequently detected in circulation, followed by the CAD $20. Counterfeit $20 detections increased approximately 343% compared with 2024.
Can one machine detect counterfeit Canadian and U.S. bills?
Yes. Certain multi-currency counterfeit detectors, including compatible configurations of AccuBANKER's D480 and D585, support both CAD and USD. The D470 can also be configured for either CAD or USD, depending on the selected currency version.
Are Canadian polymer bills difficult to counterfeit?
Canadian polymer banknotes incorporate advanced security features that make accurate reproduction difficult. However, fraudulent notes still circulate. Understanding the security features and using appropriate verification procedures helps businesses recognize suspicious currency.
Are counterfeit detection machines more effective than counterfeit pens?
Automatic counterfeit detectors can evaluate multiple security characteristics, while counterfeit pens perform a more limited test. Because Canadian polymer and U.S. paper banknotes have different properties, businesses should select verification methods suited to the currencies they accept.
Neither method guarantees detection of every counterfeit.
Will counterfeit detectors recognize Canada's new $20 bill in 2027?
Compatibility depends on the equipment and its software or currency configuration. Businesses should contact their equipment supplier to verify whether updates or adjustments will be required.
Counterfeit Prevention Starts with Consistent Verification
Canada's recent counterfeit currency statistics serve as a reminder that even advanced banknote security cannot eliminate fraud entirely.
For businesses handling CAD, USD, or both, the most effective approach combines employee awareness, consistent procedures, and properly configured detection technology.
As counterfeiters continue to adapt and new banknotes enter circulation, staying informed is an important part of protecting daily cash transactions.
AccuBANKER provides counterfeit detection solutions designed to help businesses verify supported currencies quickly and consistently.
Explore our automatic counterfeit detectors or contact our team to find a solution suited to your business and cash-handling needs.