Fake currency is a threat to each country throughout the globe. This paper is centered to detect the fake currency use of the image segmentation technique. Fake foreign money aims in discovering the forgery currency. The first step in image processing is preprocessing of the image involve containing cropping smoothing and adjustment of the image. The second step contains the conversion of the image into a gray coloration image. The conversion is done after image segmentation. The features include removal and mitigation. In the last step, compare the image to the original or the forgery image. India is more vulnerable to this problem which is results in a big hurdle. The empirical simulation is carried out using Rupees 100, 500 note of Indian Currency.