What should I do if I receive counterfeit pesos while exchanging dollars?

Ever Had That Gut Feeling? Spotting Fake Pesos After a Currency Exchange

Let’s be honest—no one expects to get fake money at a currency exchange. But last year, right after landing in Mexico City, I swapped some dollars for pesos at a seemingly reputable booth. Minutes later, in a nearby café, my barista slid a bill back to me with a knowing look: “Esto es falso.” My heart sank. It’s a panic-inducing moment, and if you’re reading this, you might be in the same boat (or fearing you could be). What can you do, right here, right now, if you’re staring at suspicious pesos? Forget generic advice—here’s the reality, with steps, screenshots, and a couple of hard-won lessons.

Step 1: Don’t Spend, Don’t Panic—Start by Verifying

The first instinct might be to try to get rid of the suspect bills—but hold on. Using counterfeit currency is illegal in most countries, including Mexico, under Article 234 of the Mexican Federal Penal Code (source). Even if you received the bills in good faith, passing them along can land you in trouble. Instead, compare your bills to an official source. Here’s a quick breakdown, based on my own mishap and how I double-checked on the spot:

• Look for security features: Official Bank of Mexico (Banxico) lists all visible security marks—watermarks, color-shifting ink, transparent windows, microprinting.
• Use an app: Snap a photo with your phone and compare using Banxico’s official app. I once caught a fake $500 bill because the watermark was missing and the app flagged the serial number as invalid.
• Ask a local bank teller or even a shop clerk: I’ve found that clerks at OXXO (Mexico’s ubiquitous convenience store) are surprisingly good at spotting fakes—they handle more bills than anyone.

Screenshot Example: Checking a Bill with Banxico’s App

Step 2: Document Everything—Receipts, Time, Place

If you suspect you were given counterfeit pesos, record the details immediately. Here’s what worked for me (and what I wish I’d done better):

• Take a photo of the bills (front and back, high-res, serial numbers visible)
• Photograph your exchange receipt and the booth or location
• Write down the exact time and date of your transaction (helps if you need to file a report)

This documentation is crucial. When I went back to the exchange counter, I was able to show the timestamped photos and get at least part of my cash replaced (more on that in a minute).

Step 3: Return to the Exchange Location—But Be Ready for Pushback

Here’s where things get dicey. Not all exchange booths will cooperate. In Mexico, for example, currency exchanges (casas de cambio) are regulated by the National Banking and Securities Commission (CNBV), and they’re required to take reasonable steps to avoid circulating counterfeit bills (CNBV guidance). But in practice? When I returned to the booth with my photos and receipt, the clerk insisted their bills were real. Only after involving a supervisor (and showing the Banxico app result) did they swap the fake for a genuine one. I’ve heard from friends who weren’t so lucky, especially at smaller, street-level exchanges.

Pro Tip:

If the booth refuses to help, ask for their manager’s name and threaten to report them to the CNBV or local police. Sometimes, just mentioning “I’ll file a formal report” is enough to get action.

Step 4: Report to Local Authorities—Yes, It’s Worth It

If the exchange doesn’t resolve it, you’ll need to report the counterfeit bills. This isn’t just to try to get your money back—it helps authorities crack down on the source. In Mexico, you can report counterfeit notes at any Banco de México branch or participating commercial bank. The process usually involves:

• Filling out a short form (bring your ID and all documentation)
• Surrendering the counterfeit bill for analysis (they rarely return it)
• Possibility of a refund, depending on the investigation outcome

For more details, check Banxico’s guidance on reporting counterfeit currency (Banxico official page).

Step 5: Learn for Next Time—And Compare International Standards

After this ordeal, I started digging into how different countries handle “verified trade” and the reporting of counterfeit currency. There are surprising differences:

Country	Verification Standard	Legal Basis	Enforcement Agency
Mexico	Physical and digital (Banxico guidelines)	Federal Penal Code, Banxico regulations	CNBV, Banxico
United States	Physical, UV/pen checks, Secret Service guidelines	18 U.S.C. § 471-474	U.S. Secret Service
Spain	ECB/Euro security features, digital tools	Código Penal, ECB directives	Banco de España, Police

What stood out to me is how some countries, like the U.S., have a clear, centralized reporting process (via the Secret Service: official link). Others, like Mexico, put more onus on commercial banks and the public.

Case Example: Cross-Border Disputes

Let’s say you exchanged dollars for pesos in Mexico, then tried to deposit those pesos in a U.S. bank with a cross-border account. The U.S. bank flags some bills as counterfeit. According to U.S. law, you’d need to fill out a Counterfeit Note Report and surrender the bills for investigation. The bank might not refund your loss, and you could be questioned about the source. This is a huge headache for dual nationals or frequent travelers—one I’ve seen play out in online expat forums like this discussion.

Expert Take: What Industry Insiders Say

I reached out to a contact, Marta López, who works as a compliance officer at a Mexico City forex chain. Her take:

“The problem is not always the exchange booth itself—sometimes fake bills enter circulation from banks or even ATMs. But customers with receipts and proof stand a much better chance of getting a refund. We advise tourists to check bills before leaving the counter. If you report a fake within 24 hours and have documentation, we usually replace it. Without proof, it’s your word against ours.”

Final Thoughts—And What I’d Do Differently Next Time

To wrap up: if you suspect you’ve gotten counterfeit pesos during an exchange, don’t try to pass them along, don’t panic, and absolutely document everything—photos, receipts, location. Go back to the exchange booth first, but be prepared for a fight. If that fails, report the bills to the appropriate authorities (Banxico, CNBV, or local police). And learn to use the official verification apps—this has saved me (and friends) several times since. One thing I regret? Not checking the bills before leaving the booth. Now, I always take a minute right there to verify, even if it annoys the line behind me. As for the international side of things, just know that “verified trade” isn’t universal—each country has its quirks and standards. Next steps: If you’re traveling soon, download your central bank’s verification app, and keep digital copies of all exchange receipts. It might feel overkill—until you need it.

References & Further Reading

• Mexican Federal Penal Code (Article 234): diputados.gob.mx
• Banxico Official Currency Verification: banxico.org.mx
• CNBV Counterfeit Prevention: cnbv.gob.mx
• U.S. Secret Service: secretservice.gov
• Banco de España—Counterfeit Reporting: bde.es
• Expat.com Forum Case: expat.com