How to Tell If a Dollar Bill Is Fake & What to Do Next

Counterfeit currency poses a threat to individuals and the economy. Fake bills diminish public trust in the monetary system and lead to financial losses for those who unknowingly accept them. Understanding how to identify genuine currency is important for protecting personal finances and maintaining financial stability.

Understanding Security Features

United States dollar bills incorporate security features designed to deter counterfeiting. These features are difficult to replicate and serve as indicators of a bill’s authenticity. Learning about each element improves one’s ability to distinguish real currency from fake.

The portrait on genuine bills displays sharp, clear lines and intricate details, including fine lines in the hair and clothing. The ink used for the portrait and other main elements is applied using an intaglio printing process, leaving a slightly raised texture that can be felt.

A faint watermark, matching the portrait, is embedded in the paper to the right of the primary image. This image is part of the paper itself, visible from both sides when held to light.

Each bill contains a security thread embedded vertically within the paper. This thread is positioned differently for each denomination and includes microprinted text of the bill’s value and “USA”. Under ultraviolet (UV) light, this thread glows a specific color.

Color-shifting ink is a security element found on denominations of $10 and higher, typically on the numeral in the lower right corner. When the bill is tilted, the ink changes color, for example, from copper to green.

Microprinting consists of tiny, legible text found in various locations on the bill. This text may include phrases like “THE UNITED STATES OF AMERICA” or the bill’s denomination. Counterfeiters struggle to reproduce these details clearly.

The paper is a blend of 75 percent cotton and 25 percent linen, giving it a unique feel and durability. Small red and blue fibers are embedded throughout this paper as part of its composition. Genuine bills also feature clear, sharp Federal Reserve and Treasury seals with crisp, unbroken saw-tooth points.

Two unique serial numbers are located on the face of the bill. These numbers should match exactly, be evenly spaced, and aligned. Their color should also correspond to the color of the Treasury Seal.

Inspecting Bills for Authenticity

Verifying a dollar bill’s authenticity involves a series of quick physical checks. These steps leverage the currency’s security features, allowing for practical assessment and helping identify suspicious notes.

Hold the bill up to a light source to examine the watermark and security thread. Observe the faint image to the right of the portrait, ensuring it matches the bill’s main portrait. Locate the vertical security thread embedded within the paper, confirming its correct position and legible microprinted text.

Tilt the bill to observe the color-shifting ink. Focus on the numeral in the lower right corner. The ink should visibly change color, typically from copper to green, as the angle of the bill shifts.

Feel the bill’s surface to detect the raised printing, a characteristic of genuine currency due to the intaglio printing process. Run your finger along the portrait, federal reserve seal, or borders. Authentic bills should feel slightly rough or textured, not completely smooth.

Use a magnifying glass to inspect the microprinting, which appears as tiny, continuous text. Confirm these minute words are crisp and clearly readable, not blurred or broken. This reveals compromised printing quality, indicating a potential counterfeit.

Visually check the overall print quality, paying close attention to the sharpness of the portrait, seals, and borders. Genuine bills exhibit sharp, distinct lines without blurring or smudging. Verify that the red and blue fibers are randomly embedded within the paper.

Examine the two serial numbers on the bill’s face. Confirm both serial numbers are identical, evenly spaced, and aligned. Their color should also match the color of the Treasury Seal.

Reporting Counterfeit Currency

Upon suspecting a dollar bill is counterfeit, follow specific procedures to handle the situation responsibly and legally. These steps prevent further circulation of fake currency and aid law enforcement investigations, to preserve potential evidence.

Do not return the suspected counterfeit bill to the person who passed it. Accepting a counterfeit note results in financial loss, as U.S. law mandates its surrender without reimbursement. Discreetly limit handling of the bill to preserve fingerprints or other evidence.

Contact your local police department or the nearest U.S. Secret Service field office. The Secret Service is the primary agency responsible for investigating counterfeit currency. You may be asked to fill out a Counterfeit Note Report, providing details about how and where you received the bill.

Note any descriptive details about the individual who passed the bill, and the transaction’s circumstances. This information can include physical appearance, clothing, or any vehicles involved. Such observations are valuable to investigators.

Place the suspected counterfeit bill in an envelope or other protective covering to prevent damage or contamination. Surrender the currency only to a police officer or a U.S. Secret Service agent. The bill will be confiscated as evidence and not returned.