It’s an unsettling thought, but the United States Department of Treasury estimates that around $70 million in counterfeit bills are currently circulating. The sophistication of counterfeiters is increasing, making it harder than ever to distinguish between genuine currency and fakes. It’s crucial for everyone, not just financial institutions, to learn how to identify counterfeit money. Knowingly using fake money to pay for goods or services carries serious penalties, including hefty fines and even imprisonment for up to 20 years under both federal and state laws. As highlighted by legal professionals, vigilance is key in combating this growing problem.
Recent reports from Wisconsin in late 2023 and early 2024 indicated a surge in counterfeit complaints from businesses. Fake bills, including $5, $20, and $100 denominations, were being passed to unsuspecting merchants. While some of these were crudely made with disclaimers like “Motion Picture Use Only,” others, particularly fake $100 bills, showed more elaborate attempts at replication. These included attempts to mimic security features like embedded ribbons and watermarks by simply gluing together thin, waxy paper sheets.
Key Methods to Identify Counterfeit Money
Banks are equipped with advanced technology to detect and confiscate fake currency. But what can you do in everyday situations to protect yourself? Drawing on advice from law enforcement and resources like the United States Secret Service’s “Know Your Money” campaign, here’s a comprehensive guide to identifying counterfeit bills:
1. Examine the Color-Shifting Ink
A primary security feature on genuine U.S. currency of $5 denominations and higher, produced after 1996, is color-shifting ink. Hold the bill up to the light and tilt it back and forth. The ink in the numeral in the lower right corner should visibly change color from green to copper, or copper to green, depending on the angle of light. Counterfeiters often struggle to replicate this sophisticated ink, so a lack of color shift is a significant red flag.
2. Feel for Raised Printing
Authentic U.S. banknotes are printed using a process that creates raised printing. To check for this, run your fingernail gently across the surface of the bill, focusing on areas where the portrait’s shoulder meets the background and other printed elements. You should feel distinct, albeit subtle, ridges. Fake bills often lack this raised texture, feeling flat and smooth to the touch in these areas.
3. Closely Inspect for Print Quality: Sharpness and Clarity
Genuine banknotes exhibit exceptionally high print quality. Scrutinize the borders, portraits, and fine-line details on the bill. Look for crisp, clear lines and text. Even under magnification, the microprinting should be legible and sharp. Counterfeit bills, on the other hand, often display blurry borders, indistinct printing, and text that appears fuzzy or less defined. Pay close attention to the intricate details that are hallmarks of genuine currency.
4. Observe the Security Fibers: Red and Blue Threads
Genuine U.S. currency incorporates tiny red and blue security fibers embedded randomly throughout the paper. These fibers are not printed on; they are woven into the fabric of the bill itself. Examine the bill closely – you should be able to see these distinct colored threads. On counterfeit bills, these threads are often imitated by simply printing red and blue lines on the paper’s surface, which will not appear embedded and may be easily rubbed off.
5. Verify the Watermark
Watermarks are another crucial security element integrated into genuine banknotes. Hold the bill up to a light source and look for a watermark. On banknotes designed after 1996, the watermark should be a portrait that exactly matches the portrait on the bill’s face. Older bills may have a simpler, less defined watermark area. If there is no watermark, or if the watermark portrait is different from the printed portrait, the bill is likely counterfeit.
6. Locate and Check the Security Thread
All U.S. banknotes, except for the $1 and $2 denominations, have a security thread embedded vertically within the paper. Hold the bill up to the light to see this thread, which runs from top to bottom. The security thread should be clearly visible and contain microprinting of text that is specific to the bill’s denomination. For example, a $20 bill will have “USA TWENTY” printed on its thread. For an advanced check, use a blacklight; the security thread will glow a specific color under ultraviolet light, varying by denomination.
7. Examine the 3-D Security Ribbon on New $100 Bills
The redesigned $100 bill incorporates a cutting-edge security ribbon. This blue ribbon is located on the front of the note and features images of bells that, when the bill is tilted, appear to move from side to side and then change to 100s as the viewing angle changes. This 3-D effect is very difficult for counterfeiters to replicate and is a strong indicator of a genuine new $100 bill.
For further in-depth visual guidance on banknote security features, consult the United States Secret Service’s “Know Your Money” resource. This comprehensive guide provides detailed visuals of the security features for each denomination.
Steps to Take if You Suspect a Counterfeit Bill
Receiving a counterfeit bill can be concerning. If you suspect you’ve been given fake money, take the following actions calmly and responsibly:
1. Document Details About the Transaction
Immediately try to remember and jot down as much information as possible about the person who gave you the bill. Note their physical description, any distinguishing features, and their behavior. If the transaction was in person, record details about their vehicle, and if they were accompanied by anyone. This information can be valuable to law enforcement.
2. Minimize Handling and Secure the Bill
Handle the suspected counterfeit bill as little as possible to preserve any potential fingerprints or DNA evidence. Place the bill in an envelope, preferably a marked one, to keep it separate and secure.
3. Seek Official Verification
Do not attempt to return the bill to circulation. Take the suspected counterfeit bill to your local bank, credit union, or police department for examination. These institutions have trained personnel and the necessary tools to properly evaluate the bill and determine its authenticity.
By staying informed and vigilant, you can protect yourself and contribute to combating the circulation of counterfeit currency. Remember, knowing How To Tell If Money Is Fake is a crucial skill in today’s world.
