How to Check if a Bill Is Real or a Counterfeit

It is important for individuals to recognize genuine U.S. currency to protect themselves from financial loss and to maintain confidence in the nation’s monetary system. Counterfeit currency can circulate in everyday transactions, and unknowingly accepting a fake bill means losing its face value. Understanding the distinguishing features of authentic banknotes is a practical skill that helps safeguard personal finances. This knowledge also contributes to the broader effort of combating counterfeiting activities.

Security Features of U.S. Currency

U.S. banknotes incorporate several security features designed to deter counterfeiting, with different denominations having specific elements. A prominent feature is the watermark, which is an embedded image visible when the bill is held up to light. On denominations of $10 and higher, the watermark typically matches the portrait on the bill, while the $5 bill features two watermarks of the numeral 5.

Another important security element is the security thread, a thin embedded strip running vertically through the bill. This thread is positioned differently for each denomination and contains microprinted text, such as “USA FIVE” for a $5 bill or “USA TEN” for a $10 bill. When held under ultraviolet (UV) light, these threads glow a specific color unique to each denomination; for instance, a $5 bill’s thread glows blue, a $10 bill’s glows orange, and a $100 bill’s glows pink.

Color-shifting ink is also utilized, appearing on denominations of $5 and higher. This ink, typically found on the numeral in the lower right corner, changes color when the bill is tilted. Microprinting, which consists of tiny, readable text, is strategically placed in various locations, such as inside the portrait border or on the security thread itself.

Genuine U.S. currency also features raised printing, or intaglio printing, which gives a distinctive tactile feel to certain areas of the bill, such as the portrait and the Federal Reserve and Treasury seals. The paper itself is a blend of cotton and linen, containing embedded small red and blue fibers. Finally, each bill has unique serial numbers, with two matching numbers located on either side of the portrait. These serial numbers should be evenly spaced and aligned, and their color should match that of the Treasury Seal.

Applying Verification Techniques

To verify the authenticity of a U.S. banknote, a systematic approach involving looking, feeling, and tilting the bill is effective. Begin by holding the bill up to a light source to check for the watermark and security thread. Observe the crispness of the printing and the clarity of fine lines, as genuine bills have sharp, unbroken borders and well-defined seals.

Next, feel the bill’s texture, especially the raised printing on the portrait and seals. The unique paper blend also provides a specific feel.

Finally, tilt the bill to observe the color-shifting ink on the denomination numeral. If available, use a UV light to verify the security thread’s glow, which should be a specific color for each denomination.

When in doubt, compare the suspicious bill with a known genuine bill of the same denomination to identify discrepancies. While counterfeit detection pens exist, they react to starch in common paper and are not always accurate, as they may not detect sophisticated counterfeits. Also check that the two serial numbers on the bill match and are evenly spaced, as mismatched or poorly aligned serial numbers can indicate a counterfeit.

Responding to Suspected Counterfeits

If you suspect you have received a counterfeit banknote, it is important to handle it carefully to preserve potential evidence. Avoid returning the bill to the person who passed it, and handle it as little as possible to prevent smudging or altering evidence. Placing the suspected counterfeit bill in an envelope or plastic bag can help protect it.

It is also helpful to recall and note down any descriptive details about the individual who passed the bill, such as their physical characteristics, and any accompanying circumstances of the transaction.

Once these steps are taken, report the suspected counterfeit to the appropriate authorities. Individuals should contact their local police department or the nearest U.S. Secret Service field office. Financial institutions and businesses may have specific procedures. It is important to remember that knowingly possessing or passing counterfeit currency is illegal under federal law. Even unknowingly possessing counterfeit money is not a crime, but knowingly passing it on is.