Police Warn of Counterfeit Cash in Waterloo
Waterloo police are investigating an incident where a resident received over $1,000 in fake bills during a buy-and-sell transaction. The case has prompted a public warning for residents to be cautious with large cash exchanges, especially when dealing with unknown individuals from online marketplaces.
The recent seizure of counterfeit currency in a local transaction is part of a larger, significant uptick in fake money circulating across the country. Provisional data for 2025 shows a near doubling of counterfeit notes passed into circulation compared to 2024, with 42,175 fake bills identified as of February 10, 2026. The most frequently counterfeited denominations in 2025 were the $100 and $20 bills. In the specific Waterloo incident on March 4, 2026, a seller of Dewalt cordless tools was paid with $1,800 in counterfeit $100 bills. This highlights a common tactic where high-value items on online marketplaces are targeted to offload a large amount of fake currency at once. The financial loss from accepting counterfeit money falls entirely on the recipient, as the Bank of Canada does not offer reimbursement. Under the Criminal Code of Canada, it is a serious indictable offence to make, possess, or use counterfeit money. Sections 449, 450, and 452 specifically address these crimes, with each carrying a maximum penalty of 14 years in prison. This severe penalty applies whether an individual is creating the bills or simply using them in a transaction, knowingly or not. To mitigate risks during in-person transactions, the Waterloo Regional Police Service has established three official "Buy and Sell Exchange Zones." These designated areas are located in the parking lots of police facilities at 45 Columbia Street East in Waterloo, and at 200 Maple Grove Road and 176 Hespeler Road in Cambridge, providing monitored locations for exchanges. Canada's polymer banknotes have several security features to verify their authenticity. The Bank of Canada advises a "Feel, Look, and Flip" method: check for the smooth polymer texture and raised ink on the large number and portrait, look at the matching metallic portrait in the transparent window, and flip the note to see the metallic images repeated on the other side. Tilting the note should reveal color-shifting properties in the metallic elements.
