How to Tell If Money Is Fake and What You Should Do

Counterfeit currency refers to illegally produced banknotes designed to imitate genuine money. Identifying counterfeit money is important for protecting against financial loss and preventing the circulation of fraudulent currency. The United States Secret Service plays a primary role in curtailing counterfeiting and ensuring the integrity of U.S. currency.

Recognizing Security Features

Genuine U.S. currency incorporates several advanced security features. These features vary slightly across denominations and series but generally include watermarks, security threads, color-shifting ink, microprinting, and raised printing. The unique paper, composed of a blend of 75% cotton and 25% linen, offers a distinct feel that is difficult to replicate. Small red and blue fibers are also embedded throughout the paper, visible upon close inspection.

A watermark is a faint image embedded within the paper, visible when held to a light source. For $5 bills, two watermarks are present: a large numeral “5” and a column of three smaller “5”s. On denominations of $10 and higher, the watermark typically matches the portrait on the bill, such as Benjamin Franklin on the $100 note. This image can be seen from both sides.

Security threads are embedded vertical strips woven into the banknote paper, visible when held to light. These threads are present in denominations of $5 and higher, each positioned uniquely and inscribed with text like “USA FIVE” or “USA 100.” Under ultraviolet (UV) light, these threads glow in specific colors for each denomination: blue for $5, orange for $10, green for $20, yellow for $50, and pink for $100.

Color-shifting ink is found on the lower right numeral of $10, $20, $50, and $100 bills. This ink changes color when the bill is tilted, shifting from copper to green. On the $100 note, the “Bell in the Inkwell” also exhibits this color-shifting property.

Microprinting involves tiny text that is sharp and clear on genuine bills but often blurry on counterfeits. This minute text is incorporated in various locations on denominations of $5 and higher. Examples include “THE UNITED STATES OF AMERICA” on Franklin’s jacket collar on the $100 bill, or “USA 20” near Jackson’s portrait on the $20 bill.

Raised printing, also known as intaglio printing, gives genuine bills a distinct texture. This process applies ink to engraved plates under high pressure, creating a slightly raised image. You can feel this texture, particularly on the portrait and around the borders. Serial numbers, unique to each note, should be evenly spaced and perfectly aligned, and the portrait and borders should be sharp and detailed, not dull or blurred.

Verifying Authenticity

Determining the authenticity of U.S. currency involves a systematic approach. A practical method is the “Look, Tilt, Feel” technique, which allows for a quick assessment. This method involves observing the bill under light, tilting it to see color changes, and feeling its unique texture.

First, hold the bill up to a light source to check for the watermark and security thread. The watermark, a faint image matching the bill’s portrait (or a numeral “5” for the $5 bill), should be visible to the right of the printed portrait. Simultaneously, look for the security thread, an embedded strip with text and denomination, which should be visible. If comparing with a known genuine bill of the same denomination and series, ensure these features align.

Next, tilt the bill to observe the color-shifting ink. On $10, $20, $50, and $100 notes, the numeral in the lower right corner should change color from copper to green. The $100 bill also features a “Bell in the Inkwell” that changes color. This optical effect is difficult for counterfeiters to replicate.

Finally, feel the paper and the raised printing. Genuine U.S. currency has a unique crispness and slightly rough texture due to the intaglio printing process. Run your fingernail gently over the portrait or other detailed areas; you should feel the raised ink. A UV light can be used to confirm the security thread glows the correct color for the denomination.

Reporting Suspected Counterfeit Currency

If you suspect you have received counterfeit currency, take specific steps to protect yourself and assist law enforcement. The U.S. Secret Service provides clear guidance on how to proceed. It is a crime to knowingly pass or attempt to pass counterfeit money.

First, do not return the suspected counterfeit bill to the person who passed it to you. Attempting to return it could alert the individual and allow them to escape. Instead, try to delay the person if safe to do so.

Minimize handling of the suspected bill to preserve potential evidence, such as fingerprints. Place it in an envelope or a protective covering. While doing this, note any descriptive information about the individual who passed the bill, their companions, or any vehicle they used, including license plate numbers.

Contact your local police department or the nearest U.S. Secret Service field office as soon as possible. Provide them with the suspected counterfeit currency and any details you noted about how you received it. Local law enforcement agencies, banks, and cash processors will submit suspected counterfeit currency to the Secret Service for analysis. Do not attempt to re-circulate the suspected bill, as knowingly passing counterfeit currency carries legal penalties.