How to Know if Money Is Real or Fake

Counterfeit currency poses a threat to individuals and the financial system. Distinguishing genuine U.S. currency from counterfeits is crucial for everyday transactions. Understanding the security features embedded in legitimate banknotes helps protect against financial loss and supports the integrity of the nation’s money supply.

Key Security Features of US Currency

Genuine U.S. currency incorporates several security features verifiable by sight and touch. The portrait on authentic notes appears lifelike, sharp, and stands out from the background, unlike the dull or blurred appearance of counterfeits. The paper itself has a unique texture due to its 75% cotton and 25% linen composition. This gives it a slightly rough feel from the intaglio printing process, especially on newer bills.

Holding a bill to a light source reveals a faint watermark, an image embedded within the paper. For denominations $10 and higher, this watermark typically matches the portrait and is visible from both sides. The $5 note features two watermarks of the numeral “5”. Another feature visible against light is the security thread, a thin strip embedded vertically. This thread is present in denominations $5 and higher, positioned differently for each, and contains microprinting of “USA” and the bill’s denomination.

Tilting the note reveals color-shifting ink, a feature on denominations $10 and higher. The numeral in the lower right corner, and on $100 notes, the “Bell in the Inkwell,” changes color from copper to green when tilted. Microprinting, tiny readable words, appears in various locations on denominations $5 and higher. These words, such as “THE UNITED STATES OF AMERICA” or “USA” and the denomination, may require magnification but appear clear and distinct on genuine currency.

Raised printing on genuine bills provides a distinctive tactile feel. Running a finger across the surface, especially over the portrait or text, reveals a slight roughness or raised texture often absent in counterfeits. Genuine U.S. currency paper also contains small, randomly dispersed red and blue fibers embedded within it. Counterfeiters may print or draw these onto the surface, but close inspection reveals them to be superficial rather than integrated.

Using Specialized Tools for Verification

Beyond visual and tactile checks, specialized tools offer further U.S. currency verification. A UV light, also known as a black light, reveals hidden features. When exposed to UV light, the security thread in genuine bills glows a specific color unique to each denomination: blue for $5, orange for $10, green for $20, yellow for $50, and pink for $100. This distinct glowing thread indicates authenticity.

A magnifying glass proves useful for examining microprinting on banknotes. While some microprinting is visible to the naked eye, a magnifying glass allows a clearer view of the tiny, intricate text, ensuring its sharpness and legibility. This helps confirm the microprinting is not simply blurred lines or dots, common on counterfeits.

Counterfeit detection pens provide another layer of scrutiny. These pens contain an iodine-based solution that reacts with starch, which is present in most wood-based papers but absent in the cotton and linen blend of genuine U.S. currency. When marked on a genuine bill, the ink produces a pale yellow or colorless line. A dark brown or black mark indicates the presence of starch, signaling a potential counterfeit. However, these pens have limitations, as they can be fooled by bleached genuine bills that have been overprinted with a higher denomination.

Steps to Take with Suspect Currency

If you suspect you have received a counterfeit bill, it is important to handle the situation carefully to preserve evidence and avoid legal complications. First, do not return the suspect bill to the person who passed it to you. Returning it could be seen as knowingly passing counterfeit currency, which is illegal.

Limit your handling of the bill as much as possible to avoid smudging fingerprints or other potential evidence. Place the suspect bill in a marked envelope or bag to keep it separate from genuine currency. If safe to do so, try to remember or note details about the passer, such as their physical characteristics, and any accompanying vehicle information like license plate numbers. This information can be crucial for law enforcement.

Report the suspected counterfeit currency to your local police department or the United States Secret Service. The Secret Service is the federal agency responsible for investigating counterfeiting. They can provide guidance on how to submit the suspect note and will conduct a comprehensive analysis. It is important to understand that if the bill is confirmed counterfeit, you will lose the money, as counterfeit notes cannot be exchanged for genuine ones.