Do you have old-fashioned paper money in your wallet or your business's safe or cash register? It's important to be able to spot a counterfeit, so the fake bill is taken out of circulation. Here's how individuals and businesses can authenticate cash and what to do if you receive a suspicious bill.
Funny Money Is No Laughing Matter
Strictly defined, counterfeit cash is money produced without the legal sanction of the issuing government. It's designed to look like real money to deceive people. Counterfeiting is a serious crime that can have significant financial impacts.
Counterfeit cash can't be exchanged for goods and services, causing direct losses to individuals or businesses that accept fake bills. But there are indirect costs, too. Counterfeit money increases the amount of cash in circulation, leading to reduced buying power and inflation. Additionally, the federal government spends millions of taxpayer dollars annually across multiple agencies on anti-counterfeiting and enforcement measures.
Clues to Uncovering Counterfeit Cash
The U.S. Secret Service confiscates millions of dollars of fake bills each year. Inside the United States, the most frequently counterfeited denomination of U.S. currency is the $20 bill. Outside the country, however, the $100 bill is the most frequently counterfeited note.
With advancements in printing technology, counterfeiters have become more sophisticated. Do you know how to identify fake bills? As you inspect banknotes received, look at the following characteristics:
- Paper quality. Start by feeling the texture of the bill. The U.S. Department of Treasury prints currency on special paper that's made from cotton and linen fibers, giving it a unique texture. Counterfeit bills often feel too smooth or too rough.
- Security thread. Hold the bill up to a light. Real currency is embedded with a vertical security thread. It may glow under ultraviolet light. (See "Simple Technology to Detect Counterfeit Cash," below.) The thread also may include text or change color when viewed from different angles.
- Watermarks. While holding the bill up to a light, also look for watermarks that can be seen from both sides. The watermark should match the portrait or design on the note. A bill without a watermark or one that's visible from only one side could be fake.
- Holograms. Some banknotes include holographic elements that change when viewed from different angles. These are difficult to replicate and provide an easy way to verify authenticity.
- Print features. Tilt the bill to see if the ink changes color. Many denominations of real currency use color-shifting ink. This feature is difficult for counterfeiters to replicate. Also feel the print. The print on genuine currency is slightly raised. Flat print is a sign that a bill might be counterfeit.
- Microprinting. Look closely at the bill for microprinting. This is intricate text in various locations on the bill that's difficult to reproduce. Blurry or missing microtext may indicate a bill is counterfeit.
- Serial numbers. Review the serial numbers printed on bills. Counterfeiters often repeat serial numbers, so compare the one on a suspicious bill with others to determine whether it's unique.
When authenticating cash, compare a questionable bill to others of the same denomination that you've gotten from a trusted bank or other reputable source. If you notice differences in color, size and features, the bill you received could be fake.
Important: Genuine bills printed before 1990 generally lack many of these features, including security threads and color-shifting ink, making them more susceptible to counterfeiting.
How to Handle Suspected Counterfeiting
What should you do if you receive a suspicious bill? First and foremost, don't return it to the person who gave it to you. The individual might become confrontational or just leave and try to spend it elsewhere. Instead, put the bill in an envelope and place it in a secure location to minimize handling. This will help preserve the item as evidence.
Contact your local police and give them with all relevant details, including how and where you received the note. Also notify your bank immediately if you received the suspicious bill from a teller or ATM. U.S. financial institutions are required under federal regulations to implement procedures to handle such situations.
Ultimately, as mentioned, the Secret Service is responsible for investigating counterfeit currency. You can contact them through their website by clicking here.
Stay Alert and Informed
Counterfeiters are continuously finding new ways to replicate currency. Spotting fake cash requires attention to detail and know-how. To protect yourself as an individual, as well as the business you own or work for, stay up to date on the latest security features and counterfeit detection methods.
Simple Technology to Detect Counterfeit Cash
Human senses have their limitations. Businesses that handle cash may want to invest in some cost-effective tools to help employees spot fake bills more easily. Examples include:
- Counterfeit detection pens containing special ink that may turn dark when it reacts with counterfeit bills,
- Magnifying glasses to check for microprinting that may be hard to detect with the human eye,
- Ultraviolet light to detect the security thread that's embedded in real bills,
- Infrared detectors that reveal specific security features that are visible only under infrared light, and
- Magnetic ink detectors to detect the magnetic properties of the ink used in genuine currency.
If you buy these tools, be sure to train workers on how to use them to detect counterfeit bills. Also provide detailed procedures for your staff to follow if a customer attempts to pay with a suspicious bill.
