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 counterfeit operations is increasing, making it harder for the average person to distinguish between genuine currency and fakes. It’s crucial for everyone, not just businesses and banks, to learn how to identify counterfeit money. Knowingly using fake money can lead to severe penalties, including hefty fines and even imprisonment for up to 20 years under both federal and state laws. This issue is on the rise, as highlighted by a Wisconsin attorney, emphasizing the need for public vigilance.
In late 2023 and early 2024, several businesses in two counties in central Wisconsin reported a surge in counterfeit bills received from customers. These incidents involved fake $5, $20, and $100 bills. While some of these were blatantly marked as “Motion Picture Use Only,” indicating their fake nature, at least four incidents involved sophisticated fake $100 bills. These fakes attempted to mimic security features like the embedded security ribbon and Ben Franklin watermark by deceptively gluing together thin, waxy paper sheets.
To protect yourself from financial loss and legal trouble, understanding how to identify fake currency is essential. While banks have robust systems to detect and confiscate counterfeit money, individuals also need to be equipped with this knowledge in everyday transactions. A police chief in Wisconsin offers the following practical tips to help you determine if a bill is genuine or counterfeit.
Key Security Features to Check on Your Bills
When examining a bill to determine its authenticity, focus on these key security features that are difficult for counterfeiters to replicate effectively:
Examine the Color-Shifting Ink
Hold the bill up to a light source and tilt it back and forth. Genuine banknotes of $5 and higher denominations, produced after 1996, incorporate color-shifting ink. This ink should visibly change color, shifting from green to copper, or copper to green, depending on the viewing angle. This color shift is a significant security feature found on authentic U.S. currency.
Feel for Raised Printing on the Note
Run your fingertip carefully across the bill’s surface, paying particular attention to areas where the portrait image meets the background of the bill. On a genuine bill, you should feel distinct, raised ridges due to the intaglio printing process used by the Bureau of Engraving and Printing. Counterfeit bills often lack this tactile element, feeling flat and smooth instead.
Inspect for Print Clarity and Microtext Detail
Take a close look at the borders, portrait details, and any small text on the bill. Authentic U.S. currency is printed with exceptional detail and sharpness. Microprinting, tiny text that is difficult to reproduce, is a hallmark of genuine bills. Even under magnification, the printing on a real bill remains crisp and the microtext should be legible. Blurry borders, indistinct printing, or illegible microtext are red flags indicating a potential counterfeit.
Identify the Embedded Security Thread
Hold the bill up to a light source to check for the presence of a security thread. This thread is embedded within the paper and runs vertically from the top to the bottom of the bill. On genuine currency, this thread is not printed on but is part of the bill’s fabric. The security thread will also have microprinting of the bill’s denomination visible on it. For an additional check, use a blacklight. The security thread in genuine U.S. bills is designed to glow a specific color under ultraviolet light, varying by denomination, adding another layer of security.
Verify the Watermark Feature
Look for a watermark by holding the bill up to the light. Newer design U.S. banknotes feature a watermark of the portrait image visible from both sides of the bill. Older bills might have a simpler watermark that appears as a faded area. The watermark should be clearly visible and should correspond to the portrait on the bill. If there’s no watermark, or if the watermark doesn’t match the portrait, it’s highly likely the bill is counterfeit.
Examine the 3-D Security Ribbon on New $100 Bills
For the redesigned $100 bill, there’s a distinctive blue 3-D security ribbon. This ribbon runs vertically down the front of the bill and contains images of bells. When you tilt the bill, these bells should appear to move from side to side. This advanced feature is unique to the new $100 bill and is very difficult for counterfeiters to replicate accurately.
What To Do If You Suspect You’ve Received a Fake Bill
Receiving a counterfeit bill can be concerning. If you suspect you’ve been given fake money, follow these steps carefully:
Note Details About the Transaction
Immediately try to remember and jot down details about the person who gave you the bill. Record a general description of the individual and the circumstances of the transaction. If it was a face-to-face interaction, such as in a private sale, try to note vehicle information or any companions they were with. These details can be valuable if further investigation is needed.
Minimize Handling and Secure the Bill
Handle the suspect bill as little as possible to preserve any potential fingerprints or DNA that could be useful for law enforcement. Place the bill in an envelope and mark it clearly as “suspected counterfeit.” This will help maintain its condition and prevent accidental circulation.
Confirm Authenticity with Authorities
Take the suspected counterfeit bill to your bank, credit union, or local police department for evaluation. Financial institutions and law enforcement agencies have the expertise and equipment to properly determine if the bill is genuine or fake. They will also know the correct procedures for handling counterfeit currency.
Stay Informed and Educated About Currency Security
Knowledge is your best defense against counterfeit money. The U.S. Secret Service, the federal agency responsible for investigating counterfeiting, provides valuable resources to help the public identify fake bills. Their “Know Your Money” guide visually details the security features of each denomination of U.S. currency. Reviewing this resource can significantly enhance your ability to spot counterfeit money.
By staying informed and applying these simple checks, you can significantly reduce your risk of accepting counterfeit money and protect yourself from potential financial and legal repercussions. Vigilance and awareness are key to combating the circulation of fake currency.
