How Can You Tell If Money Is Real or Fake?

Counterfeit currency poses a threat to financial stability, impacting individuals and businesses. Accepting fake money leads to direct financial losses, as it holds no value. Attempting to pass on counterfeit currency, even unwittingly, carries significant legal consequences. Understanding how to identify genuine currency protects personal finances and upholds the financial system’s integrity.

Key Visual and Tactile Indicators

Genuine U.S. currency incorporates security features designed to make counterfeiting difficult. The paper is distinctive, made from a blend of 25 percent linen and 75 percent cotton, giving it a unique crispness and durability. Small red and blue security fibers are embedded within the paper, appearing randomly throughout the note.

Authentic bills feature raised printing, which gives the surface a slightly rough texture that can be felt by running a finger over areas like the portrait. This tactile characteristic is difficult for counterfeiters to replicate. Genuine notes exhibit sharp, distinct lines and fine details in the portrait, borders, and text, without blurriness or breaks.

Color-shifting ink is present on denominations of $10 and higher, typically on the numeral in the lower right corner of the front of the bill. When tilted, this ink changes color, often from copper to green. For instance, the $100 bill features a bell in an inkwell that exhibits this color change.

Holding a bill up to a light source reveals a watermark, a faint image embedded within the paper. This watermark is visible from both sides and, on denominations of $10 and higher, typically matches the portrait. A security thread is embedded vertically within the paper of denominations $5 and higher, visible when held to light. This thread is inscribed with text indicating the note’s denomination and its location varies. Microprinting, tiny, readable text, is also found in various locations on denominations $5 and higher, requiring magnification to be clearly seen.

Using Detection Tools

While direct observation is effective, specific tools aid in counterfeit detection. Counterfeit detection pens contain an iodine-based solution that reacts to starch found in most wood-based papers, which is not present in genuine U.S. currency paper. When used on a real bill, the mark remains pale yellow or clear; on counterfeit paper, it turns dark blue or black. These pens offer a quick preliminary check, though they are not foolproof, as sophisticated counterfeiters may use bleached genuine bills or treated paper.

Ultraviolet (UV) lights are another common detection tool, used to reveal hidden security features. Genuine U.S. currency has security threads that glow specific colors under UV light, varying by denomination:
A $5 bill glows blue.
A $10 bill glows orange.
A $20 bill glows green.
A $50 bill glows yellow.
A $100 bill glows pink.
UV light can also make certain specialized inks or fibers glow, providing an additional layer of verification.

Steps to Take with Suspected Counterfeit Currency

Upon encountering suspected counterfeit currency, specific actions should be taken to prevent financial loss and assist law enforcement. Avoid returning the suspected bill to the person who presented it, as this could involve you in illegal activity. Instead, observe and remember details about the passer, but do not confront them. These details include:
Their height.
Their build.
Their hair color.
Their clothing.
Any companions or vehicles.

Limit handling of the suspected currency to preserve potential fingerprints or other evidence. If possible, place the bill in a protective covering, such as an envelope or plastic bag. Promptly contact local law enforcement, such as your local police department, or the nearest U.S. Secret Service field office. Provide all relevant details to the authorities, including how you received the bill and any observations you made about the person who passed it.