Counterfeit money is more common than most people realize, and you don’t have to work at a bank to encounter it. Scammers use a variety of clever tricks to pass fake bills, often targeting unsuspecting individuals in everyday situations. Whether you’re shopping, helping a stranger, or running a business, you could end up with worthless counterfeit cash without even knowing it. Understanding these scams can help you recognize the warning signs and avoid financial losses. Below are five unexpected ways you might come across counterfeit money—and how to protect yourself.

1. The Fake “Pay It Forward” Scam

In some cases, scammers take advantage of people’s kindness to circulate counterfeit money.

How the Scam Works:

• A scammer approaches someone at a gas station, convenience store, or parking lot, or casino claiming they “only have a $100 bill” and need smaller bills to pay for something
• The victim, wanting to help, exchanges their real smaller bills for the fake larger bill
• The scammer thanks them and walks away, leaving the victim with a worthless counterfeit

How to Protect Yourself:

• Be cautious when exchanging money with strangers, especially in informal settings
• If someone is genuinely in need, suggest they use a bank or store to break their bill
• Trust your instincts—if something feels off, politely decline

2. The Fake Charity Donation Scam

Scammers sometimes use fake charity donations to pass counterfeit bills, preying on people’s generosity.

How the Scam Works:

• A scammer approaches a small business, church, or street fundraiser, claiming they want to make a generous cash donation
• They hand over a large counterfeit bill (often a $50 or $100) and ask for change
• The recipient, grateful for the donation, provides real cash in return
• Later, when the bill is checked, it turns out to be fake—but the scammer has already walked away with genuine money

How to Protect Yourself:

• Always verify large cash donations before providing change
• Encourage donors to use checks, digital payments, or official donation platforms
• Train staff or volunteers to recognize security features on real currency

This scam works similarly to the “Pay It Forward” trick, as it manipulates emotions—kindness and generosity—to make victims less suspicious of the transaction.

3. The Fake Customer Refund Scam

Scammers often target small businesses and restaurants by pretending to be unhappy customers seeking a refund—using counterfeit money as part of the deception.

How the Scam Works:

• A scammer enters a store or restaurant claiming they recently made a cash purchase but were overcharged or received defective goods
• They demand a refund and show a fake receipt as proof
• The cashier, wanting to resolve the issue quickly, hands them real cash as a refund
• The scammer either never actually made a purchase or returns counterfeit money they “paid” with, walking away with real cash

How to Protect Yourself:

• Always verify receipts and transaction records before issuing refunds
• Be wary of customers who seem unusually aggressive or insistent on cash refunds
• Train employees to check returned money carefully to ensure it’s not counterfeit

4. The Fake Nightclub Tab Payment Scam

Bars and nightclubs, with their dim lighting and fast-paced transactions, are perfect places for scammers to pass counterfeit cash—often at the expense of unsuspecting patrons.

How the Scam Works:

• A scammer approaches a group at a club or bar, offering to “pitch in” for drinks with a large bill, like a $100
• The group, thinking it’s a fair deal, accepts the cash and gives the scammer real money in change
• Later, when paying the tab, the bartender rejects the fake bill—but the scammer is long gone
• The group is forced to cover the missing amount, losing both their money and the drinks they thought were paid for

How to Protect Yourself:

• Be cautious when accepting large bills from strangers, especially in social settings
• If someone offers to pay cash, suggest using a card or mobile payment instead

Scammers use the excitement and distractions of nightlife to slip fake money into circulation. Staying alert can prevent you from getting stuck with worthless cash.

5. The Fake Lottery Winnings Scam

Scammers sometimes use counterfeit cash as part of a larger scheme to trick victims into thinking they’ve won money.

How the Scam Works:

A scammer convinced an elderly man that he had won a lottery prize but needed to pay “fees” to claim it. The scammer gave him counterfeit cash and convinced him to send real money via wire transfer. The victim later realized he had been tricked.

How to Protect Yourself:

• If someone claims you’ve won money but asks for payment in return, it’s a scam
• Legitimate lotteries never require winners to pay upfront fees
• Be cautious of unsolicited messages, phone calls, or letters claiming you’ve won a prize you don’t remember entering

Counterfeit scams can happen to anyone, not just businesses. Scammers use distraction and social pressure to pass fake cash before victims realize it. Stay alert when handling money—always verify bills before accepting them. Using Dri Mark detection solutions, can help spot fake money instantly. With the right tools and a little caution, you can protect yourself from fraud.