Man Claims ATM Dispensed Two Counterfeit Bills, Bank Responds: Not Fake, Demagnetized

A man in Liaoning Province reported withdrawing two 100-yuan banknotes from an ATM that he suspected were counterfeit after failing to deposit them. The ATM flagged the bills as problematic. Bank employees also couldn’t deposit the bills. However, the bank clarified that the banknotes were not counterfeit but demagnetized. ATMs are sensitive to demagnetized currency, which the bank replaced for the customer. Demagnetized currency remains legal tender.

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CNBC AI News, August 13 – A man in Chaoyang, Liaoning Province, recently reported to the media that he withdrew two 100-yuan banknotes from an ATM that he perceived as counterfeit, according to local reports.

The man stated that he withdrew 5,000 yuan from an ATM located near a hospital. However, when attempting to deposit the funds into another account, he encountered repeated failures with two specific 100-yuan bills.

According to the ATM’s voice prompt, these two bills were flagged as problematic and could not be deposited.

“Two bank employees were called over, and they also couldn’t deposit the bills after several attempts,” the man stated, leading him to believe the banknotes were forgeries.

However, a representative from the bank branch clarified the situation to reporters: “The banknotes are not counterfeit. They have been demagnetized.”

The bank representative explained that ATMs are particularly stringent when identifying demagnetized currency during deposit attempts. The bank replaced the banknotes, allowing the customer to complete his deposit.

Demagnetized currency remains legal tender and can still be used in transactions. However, banks typically collect these bills and forward them to the People’s Bank of China for processing.

Man Claims ATM Dispensed Two 'Counterfeit' 100-Yuan Notes; Bank Clarifies: Not Fake, But Demagnetized

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