The U.S. Department of Treasury estimates that approximately $70 million in counterfeit currency is currently circulating. Distinguishing between genuine and fake bills is becoming increasingly challenging, demanding vigilance from everyone, not just financial institutions. Knowing how to identify counterfeit money is crucial because knowingly using fake currency can lead to severe penalties, including hefty fines and imprisonment of up to 20 years under federal and state laws. This issue is a growing concern, requiring individuals and businesses to be proactive in detecting fraudulent bills.
Recent reports from central Wisconsin counties highlight a surge in counterfeit money complaints from businesses in late 2023 and early 2024. These incidents involved various denominations, including fake $5, $20, and $100 bills. Some of these counterfeits were crudely made, marked with disclaimers like “Motion Picture Use Only,” but others, particularly fake $100 bills, showed more sophisticated attempts at replication. These included efforts to mimic the embedded security ribbon and Benjamin Franklin watermark by layering thin, waxy paper.
Key Security Features to Check on U.S. Currency
Banks are equipped with advanced systems to detect and confiscate counterfeit money. However, everyday individuals need to be aware of the security features embedded in genuine U.S. banknotes. Here are essential methods to determine if money is fake, based on expert recommendations:
Examine the Color-Shifting Ink
For bills of $5 denomination and higher produced after 1996, a key security feature is color-shifting ink. Tilt the bill back and forth while observing the ink. It should visibly change color, typically shifting from green to copper, or copper to green, depending on the angle of light. This color variation is difficult for counterfeiters to replicate effectively.
Feel for Raised Printing
Authentic U.S. currency incorporates raised printing, a tactile security element. Carefully run your fingernail across the bill’s surface, focusing on areas like the portrait’s shoulder and face, and other printed elements. You should feel distinct, fine ridges. Counterfeit bills often lack this raised texture, feeling flatter and smoother to the touch.
Inspect for Sharpness and Clarity of Borders and Printing
Genuine banknotes are printed with exceptional detail and precision. Closely examine the borders, portraits, and fine-line printing, including any small text. Authentic bills exhibit crisp, clear lines and microprinting that remains legible even under magnification. Counterfeit bills often display blurry borders, indistinct printing, and illegible microtext due to less sophisticated printing processes.
Verify the Presence of Security Threads
Authentic U.S. currency includes embedded security threads that are integrated into the paper itself. Hold the bill up to a light source to check for these threads, which run vertically from top to bottom. Each denomination has a unique thread position and text. The text on the thread should match the bill’s denomination. For enhanced verification, use a blacklight; the security thread should glow a specific color under ultraviolet light, corresponding to the bill’s denomination.
Observe the Watermark
A watermark is another crucial security feature in genuine U.S. banknotes. Hold the bill up to the light and look for a faint image within the paper. Newer bill designs incorporate a watermark portrait that matches the portrait on the bill’s face. Older designs might have a simpler, less distinct watermark. If there is no watermark, or if the watermark portrait does not correspond to the face on the bill, it is likely counterfeit.
Check the Security Thread and its UV Glow
As mentioned before, the security thread is a vital element. For a more advanced check, use a blacklight to illuminate the bill. Under UV light, the embedded security thread in genuine U.S. currency will fluoresce a specific color. For example, the $5 bill thread glows blue, the $10 bill orange, the $20 bill green, the $50 bill yellow, and the $100 bill pink. If the thread does not glow the correct color, or doesn’t glow at all, the bill is suspect.
Examine the 3-D Security Ribbon on New $100 Bills
The redesigned $100 bill incorporates a unique 3-D security ribbon. This blue ribbon is visible on the front of the note and features images of bells that and 100s. When you tilt the bill, these images should appear to move and shift from side to side. This advanced holographic feature is very difficult for counterfeiters to replicate convincingly.
Alt: Inspecting a new design one hundred dollar bill for the 3D security ribbon feature.
The U.S. Secret Service, the federal agency responsible for investigating counterfeiting, provides valuable resources to help the public identify fake currency. Their “Know Your Money” guide is an excellent visual aid that details the security features of each denomination. This resource is readily available on the Secret Service website and is a concise, informative tool for anyone handling cash.
United States Secret Service Know Your Money
Steps to Take If You Suspect You Have Received a Counterfeit Bill
Receiving a counterfeit bill can be unsettling. If you suspect that you have been given fake money, take the following steps:
Record Detailed Information
Immediately try to remember and jot down details about the transaction and the person who gave you the bill. Note their physical description, any distinguishing features, and the circumstances of the exchange. If it was a private transaction (e.g., online marketplace, yard sale), record vehicle information or details about any companions they may have had. This information can be crucial for law enforcement.
Minimize Handling and Secure the Bill
Handle the suspect bill as little as possible to preserve potential fingerprints or DNA evidence that could be useful in investigations. Place the bill in a marked envelope or protective cover to prevent further handling and to keep it separate from other currency.
Seek Official Verification
The most important step is to have the bill verified by experts. Take the suspect bill to your bank, credit union, or local police department. Financial institutions and law enforcement agencies have the expertise and equipment to properly evaluate the currency and determine its authenticity.
Alt: Magnified view of a twenty dollar bill showcasing security features for counterfeit detection.
By staying informed and utilizing these methods, you can significantly reduce your risk of accepting counterfeit money and protect yourself and your business from potential financial losses and legal complications. Vigilance and knowledge are your best defenses against counterfeit currency.
