Tips to Avoid Counterfeit Currencies (2024)

FAQs

Tips to Avoid Counterfeit Currencies? ›

Look for irregularities, smudges, or uneven patterns, as these can indicate counterfeit printing. Microprinting: Authentic banknotes often incorporate microprinting, which involves printing tiny text or patterns that are difficult to replicate. Use a magnifying glass to inspect the note.

Watermarks, security threads, color-shifting ink, special paper, signatures, the US Seal, and unique numbering all help to determine the authenticity of a note. Despite all efforts to prevent counterfeiting, counterfeiters in the US and abroad produce currency and put it into circulation.

U.S. money is protected from counterfeiting its quality of paper, the existence of blue and red fibers that can be plucked from the bill, and the difficulty in reproducing seals and portraits. Other countries currency is also protected by such safety checks.

Only purchase items that have been tested and marked. Only use licensed, insured, and bonded contractors that will stand behind their work. Products and packaging with typos and misspellings have a high likelihood of being counterfeit.

When iodine is applied to the unique blend used by genuine US cash, there is no discoloration due to the lack of starch. However, the same effect can be accomplished by using hairspray on commonly used papers since it will create an invisible barrier between the starch and iodine from the pen.

From watermarks to security threads, understanding these features can help you differentiate genuine bills from counterfeit ones. Watermarks and Security Threads: Legitimate currency notes often feature watermarks and security threads that are embedded during the printing process.

The $20 bill is the most commonly counterfeited banknote in the U.S., while overseas counterfeiters are more likely to make fake $100 bills. The real $100 bills are more prevalent overseas as well, according to the Federal Reserve Bank of San Francisco.

Spray each bill evenly with enough spray starch to cover all of the exposed money for about 3 seconds each. Let it soak in for another three seconds and use another towel to wipe off the excess spray starch. After you've wiped off the extra starch, hang them up to dry.

The best way to determine whether a note is genuine is to rely on the security features, such as the watermark and security thread. Counterfeit detection pens are not always accurate and may give you false results.

Who stops counterfeit money? ›

Law enforcement agencies, banks and cash processors will submit suspected counterfeit currency to the Secret Service through our USDollars website.

For modern coins in general circulation, the most common method of protection from forgeries is the use of bi-metallic coins made of two metals of different color, which are difficult to counterfeit at low cost.

Security Thread

Hold the note to light to see an embedded thread running vertically to the left of the portrait. The thread is imprinted with the letters USA and the numeral 100 in an alternating pattern and is visible from both sides of the note. The thread glows pink when illuminated by ultraviolet light.

Examine the serial numbers.

Make sure that the serial numbers on a bill match, and look at them carefully. Fake bills may have serial numbers that are not evenly spaced or that are not perfectly aligned in a row. If you received multiple suspicious bills, see if the serial numbers are the same on both bills.

Feel the paper: Genuine currency is typically printed on special paper that has a distinct texture and feel. It should feel slightly rough to the touch, not smooth or glossy like regular printer paper. Check for watermark: Hold the banknote up to the light to see if it has a watermark.

In the USA, however, fake banknotes will be removed from your account. You will have to get in contact with the police and explain how and where you got this counterfeit money. If they find out you tried to deposit fake notes willingly, you will face legal actions and can even be jailed.

If a Reserve Bank detects counterfeit or unlawfully altered currency or coin in DI deposits, the Reserve Bank forwards that currency or coin to the Secret Service, and the DI's Reserve account is charged for the difference.

If you work in a shop or business and someone has tried to pay with counterfeit money, try and keep the note if doing so will not place anyone in danger. Then take the note or notes to your local police station or report this to us using our online reporting form.

Examine the holograms or color-shifting images: Some newer U.S. notes, have holograms or color-shifting images that change when you tilt the bill. Be cautious of irregularities: Look for any irregularities, such as blurred or uneven printing, missing security features, or unusual colors.