How to Tell If a Bill Is Fake: Security Features & Steps

The ability to identify genuine banknotes is important for everyone. Counterfeit currency, though uncommon, poses a threat to individuals and businesses, leading to financial losses if accepted unknowingly. Understanding the security features in United States currency helps protect oneself and prevent the circulation of fraudulent bills.

Identifying Security Features on US Currency

Paper Blend

Genuine United States currency is printed on a unique paper blend of 75% cotton and 25% linen, giving it a crisp feel and durability. Small red and blue synthetic fibers are randomly embedded throughout the paper.

Raised Printing

Authentic currency has raised printing from the intaglio process, giving the surface a slightly rough texture that can be felt by running a finger across it. This raised ink provides a three-dimensional quality that counterfeiters struggle to replicate. A genuine bill should never feel slick, waxy, or overly thin.

Watermark

A watermark is visible when the bill is held up to a light source. This faint, translucent image is embedded within the paper and can be seen from both sides. On denominations of $10 and higher, the watermark typically mirrors the portrait. For example, a $20 bill displays a watermark of Andrew Jackson. The $5 bill features a watermark of the numeral “5” in the blank space to the right of the primary image. The image should appear clear and well-defined, not blurry or indistinct.

Security Thread

An embedded security thread runs vertically through the currency paper, absent only from $1 and $2 bills. When held to a light, this thread becomes visible and contains microprinted text that spells out “USA” followed by the bill’s denomination. Each denomination’s security thread is located in a different position and glows a specific color under ultraviolet (UV) light. A $5 bill’s thread glows blue, a $10 bill’s glows orange, a $20 bill’s glows green, a $50 bill’s glows yellow, and a $100 bill’s glows pink or red. This UV test provides an additional layer of verification.

Color-Shifting Ink

Color-shifting ink is found on denominations of $10 and higher. The numeral in the lower right-hand corner on the front is printed with this special ink. When tilted, the color shifts, typically from copper to green. The $100 bill features this ink on both the large numeral “100” and within the copper inkwell, where a bell image appears and disappears. Counterfeit versions often show a flat color or poor color change.

3-D Security Ribbon

Modern $100 bills incorporate a 3-D security ribbon, woven directly into the paper on the front. This blue ribbon contains images of bells and “100s” that appear to move when the bill is tilted. The bells and 100s move in opposite directions as the note is rotated. This feature is integrated into the fabric of the bill.

Microprinting

Microprinting involves tiny text difficult to read without magnification. This feature is present on denominations of $5 and higher, located in various areas such as around the portrait, within the borders, or on the security threads. The text may include phrases like “THE UNITED STATES OF AMERICA,” “USA,” or “E PLURIBUS UNUM.”

Genuine bills display clear, sharp text. Counterfeit bills often have blurred, illegible, or missing microprinting. A magnifying glass can assist in verification.

Serial Numbers

Inspecting the serial numbers can also provide clues. Each genuine note has a unique serial number printed twice on the front. The first letter indicates the series year. If serial numbers do not match, or if multiple suspicious bills share the same serial number, it indicates counterfeiting. The color of the serial numbers should precisely match the color of the Treasury Seal.

Counterfeiters may replicate one or two security features. For reliable identification, examine multiple features on any suspicious bill. Comparing a questionable bill side-by-side with a known genuine bill of the same denomination and series can aid in detecting discrepancies.

What to Do If You Suspect Counterfeit Money

Legal Consequences and Initial Actions

If you receive currency that you suspect is counterfeit, take appropriate steps to prevent further circulation and assist law enforcement. Avoid returning the suspected bill to the passer. Attempting to pass it on, even unknowingly, can carry severe legal consequences, as possessing or using counterfeit currency with fraudulent intent is a federal crime.

Gathering Information Safely

Remember the passer’s physical description and, if possible, note their vehicle’s license plate number. Prioritize personal safety; do not confront or detain the individual. Gather information discreetly for authorities.

Handling the Suspected Bill

Handle the suspected bill as little as possible to preserve evidence. Place it in a protective covering, like an envelope or plastic bag. Write your initials and the date in the white border area of the note.

Reporting to Authorities

Contact your local police department or the nearest U.S. Secret Service field office. The Secret Service investigates counterfeiting of U.S. currency. Individuals should report suspected currency to their local police, who coordinate with the Secret Service.

Provide all gathered information, including how and where the bill was received, and the description of the person who passed it. Businesses and financial institutions use Secret Service Form (SSF) 1604. Individuals may be directed to submit the bill directly to the Secret Service or through local law enforcement.

Understanding Reimbursement and Circulation

Do not spend, deposit, or circulate the suspected bill. Federal Reserve Banks do not accept deposits of counterfeit currency; if detected, the amount will be charged back. Surrender the suspected currency only to a properly identified police officer or U.S. Secret Service agent. While you will not be reimbursed, reporting helps prevent others from falling victim and supports efforts to combat counterfeiting. Law enforcement uses the information to track and apprehend counterfeiters.