How to Tell a Bill Is Fake and What You Should Do

Distinguishing genuine United States currency from counterfeit bills is a practical skill. Counterfeit currency leads to financial losses, as fake notes cannot be exchanged for legitimate ones. Unknowingly passing a counterfeit bill can also carry legal consequences. Understanding the security features embedded in legitimate currency helps protect against these risks.

Examining the Paper and Print Quality

A tactile and visual inspection of the bill’s paper and print quality is the first line of defense. Genuine U.S. currency paper has a distinct feel, composed of a blend of 75% cotton and 25% linen, giving it a crisp, slightly textured, and durable quality. Small red and blue security fibers are embedded throughout the paper, visible to the naked eye. Counterfeit paper often feels thinner, smoother, or waxy, lacking this unique texture and embedded fibers.

Examining the printing itself can provide further clues. Authentic bills are produced using intaglio printing, which creates raised ink that can be felt by running a fingernail over areas like the portrait or denomination. This raised printing gives genuine bills a slightly rough feel. In contrast, counterfeit bills, produced with less sophisticated methods, often have flat and smooth ink that lacks this tactile quality. Fine lines and details in genuine currency, particularly around the portrait, borders, and seals, appear sharp and clear. Counterfeits may exhibit blurry lines, uneven ink, or missing details due to lower print quality.

Identifying Key Security Features

Genuine U.S. currency incorporates several advanced security features designed to deter counterfeiting, which are difficult for counterfeiters to replicate accurately. A watermark, a faint image embedded in the paper, becomes visible when held up to light. On denominations of $10 and higher, the watermark typically matches the portrait on the bill, appearing to the right of the printed portrait. The $5 note features two watermarks of the numeral “5”. This watermark should be visible from both sides of the note.

A security thread, a thin, embedded strip, runs vertically through the bill. This thread is present in all denominations $5 and higher and is woven into the paper. When held to light, the thread is visible and contains microprinted text, such as “USA” followed by the bill’s denomination. For instance, a $20 bill’s thread will read “USA TWENTY”. Each denomination has its security thread in a different position and glows a distinct color under ultraviolet (UV) light: $5 bills glow blue, $10 bills glow orange, $20 bills glow green, $50 bills glow yellow, and $100 bills glow pink.

Color-shifting ink is found on denominations of $10 and higher. The numeral in the lower right corner of these bills is printed with this special ink, which changes color when the bill is tilted. For example, the number will shift from copper to green. The $100 note also includes a “Bell in the Inkwell” that similarly changes color. This effect is difficult to counterfeit, as it relies on specific metallic flakes within the ink.

Microprinting, tiny, legible text, is present in various locations on denominations $5 and higher. This text, such as “THE UNITED STATES OF AMERICA” or “USA,” may be found along the borders, inside the portrait, or on the security threads. While often requiring a magnifying glass to read clearly, microprinting on genuine bills should be sharp and distinct, not blurry or illegible. The $100 bill, for example, has microprinting around Benjamin Franklin’s collar. These intricate details are extremely challenging for counterfeiters to reproduce with clarity.

Verifying Serial Numbers and Borders

Further examination of a bill’s printed elements, specifically its serial numbers and borders, can provide additional indicators of authenticity. Each genuine U.S. currency note features a unique serial number that appears twice on the front, on either side of the portrait. These numbers should be evenly spaced, uniformly printed, and match each other precisely. Discrepancies in spacing, alignment, or matching serial numbers, or multiple suspicious bills bearing the same serial number, are strong signs of a counterfeit.

The Treasury Seal and the Federal Reserve Seal are important points of inspection. These seals, located on the front of the bill, should have sharp, unbroken sawtooth points. On counterfeit bills, these points often appear blunt, uneven, or broken due to inferior printing processes. The crispness of these seals reflects the precision of genuine currency production.

Similarly, the fine lines that make up the borders around the portrait and other design elements should be clear, continuous, and distinct. Counterfeit bills frequently exhibit fuzzy, broken, or merged lines in these areas. The intricate details within the borders, such as the subtle patterns and textures, are difficult to reproduce without the specialized equipment used by the Bureau of Engraving and Printing.

Steps to Take with Suspected Counterfeit Bills

If you suspect you have received a counterfeit bill, take specific actions to prevent further circulation and aid law enforcement. Do not return the bill to the person who passed it, as this allows continued circulation and destroys potential evidence. Limit handling the suspected counterfeit note to preserve any fingerprints or other evidence.

Note down any details about the individual who gave you the bill, including their physical characteristics, what they were wearing, and any vehicle information like license plate numbers or descriptions. Remembering the date, time, and location of the transaction is also helpful. These details can be crucial for investigators.

Report the suspected counterfeit to the appropriate authorities. Contact your local police department or the nearest United States Secret Service field office. While some businesses or financial institutions may have specific reporting procedures, an individual’s primary contact points are local law enforcement or the Secret Service. The Secret Service investigates counterfeiting and provides guidance on how to submit the suspected note. Knowingly passing a counterfeit bill, even if unknowingly received, can lead to legal consequences, including fines and imprisonment. Federal law can impose penalties of up to 20 years in prison for those found guilty of altering, creating, or knowingly passing counterfeit currency.