Business and Accounting Technology

How to Know if Your Money Is Marked

Learn to identify unusual currency, from fakes to specially marked bills, and what steps to take if you encounter them.

The term “marked money” refers to currency altered by law enforcement for investigative purposes or counterfeit bills created to deceive. Understanding these contexts and how to identify and handle such currency protects against financial loss and ensures legal compliance. This article clarifies these distinctions and provides guidance on recognizing and handling money that might be “marked.”

Identifying Counterfeit Currency

Distinguishing genuine U.S. currency from counterfeits involves examining several embedded security features. These features are designed to be difficult to replicate, helping individuals identify suspicious currency.

Genuine U.S. currency paper, a blend of 75% cotton and 25% linen, has a distinct crisp texture. Small, randomly dispersed red and blue security fibers are embedded throughout the paper, not printed on the surface. Counterfeiters often draw or print these, which is detectable upon close inspection.

Many denominations feature color-shifting ink, particularly on the numbers in the lower right corner. For $10 bills and higher, tilting the note changes the ink color, typically from copper to green. The $100 bill also includes a “Bell in the Inkwell” that changes color. The $5 bill does not have color-shifting ink.

When held to light, a faint watermark image should be visible to the right of the portrait. For $10 bills and higher, this watermark usually matches the portrait. The $5 note features two watermarks, both of the numeral five. Additionally, a security thread is embedded vertically within the paper. This thread is inscribed with the denomination and glows a specific color under ultraviolet (UV) light, with each denomination glowing a different color (e.g., $5 glows blue, $20 glows green, $100 glows pink).

Microprinting, tiny, almost illegible text, appears in various locations on denominations $5 and higher. These small words, such as “THE UNITED STATES OF AMERICA” or “USA,” are sharp and clear on genuine bills but often appear blurry or broken on counterfeits. The overall printing quality of authentic currency is sharp and precise, a result of the intaglio printing process that creates a slightly raised, tactile feel in areas like the portrait. Counterfeit bills often exhibit flat, blurry, or less detailed printing. Serial numbers, unique to each note, and Federal Reserve indicators are also present, and their consistency and clarity are further authentication points.

Understanding Law Enforcement Marked Money

“Marked money” in law enforcement refers to genuine currency specially altered or documented for investigative purposes. This practice helps authorities track, identify, and use money as evidence in criminal cases, linking specific funds to illegal activities like drug transactions, ransom payments, or sting operations.

One common method involves recording banknote serial numbers, allowing investigators to trace fund circulation and identify individuals. Another technique uses invisible fluorescent powders or dyes that glow under UV light. These powders can transfer to the skin or clothing of individuals handling the money, providing forensic evidence.

Dye packs are a more overt method, primarily used in bank robberies. These devices are concealed within stacks of genuine banknotes and explode once removed from a bank, releasing a bright, indelible dye (often red) that stains the money and potentially the robber. This makes stolen cash easily recognizable and unusable, often accompanied by tear gas. Unlike counterfeit currency, law enforcement marked money is authentic U.S. currency intentionally altered for specific operational objectives. An average person is unlikely to encounter such money in regular transactions.

Handling Suspected or Damaged Currency

If you suspect you have received a counterfeit banknote, handle the situation responsibly and legally. Never attempt to re-circulate suspected counterfeit money, as knowingly passing it is illegal and can lead to serious penalties. Limit handling the suspect bill to preserve potential evidence, perhaps placing it in an envelope or plastic bag.

Recall and note details about how you received the bill, including who gave it to you, the date, time, and location. Report the suspected counterfeit currency to your local police department or the U.S. Secret Service, the federal agency investigating counterfeiting. They will collect the bill and any information you provide. You will likely not be reimbursed for a counterfeit bill turned over to authorities, as it has no legal value.

For damaged or unusually marked genuine currency, different procedures apply. Minor damage like small tears, folds, or stains from normal wear and tear does not invalidate U.S. currency, and such bills can generally be exchanged at any commercial bank. However, if currency is severely damaged (more than half of the bill is missing or its condition is questionable), it may be classified as “mutilated currency.”

Severely mutilated currency can be submitted for examination and possible redemption to the Bureau of Engraving and Printing (BEP). The BEP offers a free service to evaluate and redeem such currency.

Redemption Requirements

For full value redemption, clearly more than 50% of the identifiable note must be present, along with sufficient remnants of any relevant security feature. If 50% or less of the note is present, supporting evidence demonstrating that the missing portions have been totally destroyed is required.

Submission Process

Submissions to the BEP should include a letter explaining how the currency became damaged and your contact information. Payment is often provided via direct deposit or check.

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