COUNTERFEIT MONEY

Counterfeit money is imitation currency produced without the legal permit of the state or government. Producing or using counterfeit money is a form of fraud or forgery. Counterfeiting is almost as old as money itself.

Some of the ill-effects that counterfeit money has on society include a reduction in the value of real money; and increase in prices (inflation) due to more money getting circulated in the economy – an unauthorized artificial increase in the money supply; a decrease in the acceptability of paper money; and losses, when traders are not reimbursed for counterfeit money detected by banks, even if it is confiscated.

The circulation of counterfeit money poses challenges to the economic stability and trust within a nation’s monetary system. To maintain public confidence and ensure the authenticity of currency in circulation, it is essential to understand both the risks associated with counterfeiting and the unique features of legitimate money. By identifying the specific characteristics of genuine notes, individuals and businesses can better protect themselves against the impacts of counterfeit currency.

The Federal Reserve Board of United States currently issues $1, $2, $5, $10, $20, $50, and $100 notes. Each denomination features a portrait of a famous American statesman on its face and an image reflective of the nation’s history on the back.
 
Examples of recent styles of notes for each denomination:

• $1

Security features:

Raised Printing: Move your finger along the note’s surface to feel the raised printing, which gives genuine Federal Reserve notes their distinctive texture.

Paper: Federal Reserve note paper is one-fourth linen and three-fourths cotton, and contains red and blue security fibers. 

• $2

Security features:

Raised Printing: Move your finger along the note’s surface to feel the raised printing, which gives genuine Federal Reserve notes their distinctive texture.

Paper: Federal Reserve note paper is one-fourth linen and three-fourths cotton, and contains red and blue security fibers. 

• $5

Security features:

Watermark:
– Hold the note to light and look for a faint image of three numeral 5s to the left of the portrait. The image is visible from both sides of the note.
– Hold the note to light and look for a faint image of a large numeral 5 in the blank space to the right of the portrait. The image is visible from both sides of the note.

Security Thread: Hold the note to light to see an embedded thread running vertically to the right of the portrait. The thread is imprinted with the letters USA and the numeral 5 in an alternating pattern and is visible from both sides of the note. The thread glows blue when illuminated by ultraviolet light.

• $10

Security features:

Watermark: Hold the note to light and look for a faint image of Secretary Hamilton in the blank space to the right of the portrait. The image is visible from both sides of the note.

Security Thread: Hold the note to light to see an embedded thread running vertically to the right of the portrait.  The thread is imprinted with the text USA TEN and a small flag in an alternating pattern and is visible from both sides of the note.  The thread glows orange when illuminated by ultraviolet light.

Color-Shifting Ink: Tilt the note to see the numeral 10 in the lower right corner of the front of the note shift from copper to green.

• $20

Security features:

Watermark: Hold the note to light and look for a faint image of President Jackson in the blank space to the right of the portrait.  The image is visible from both sides of the note.

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 text USA TWENTY and a small flag in an alternating pattern and is visible from both sides of the note.  The thread glows green when illuminated by ultraviolet light.

Color-Shifting Ink: Tilt the note to see the numeral 20 in the lower right corner of the front of the note shift from copper to green.

• $50

Security features:

Watermark: Hold the note to light and look for a faint image of President Grant in the blank space to the right of the portrait.  The image is visible from both sides of the note. 

Security Thread: Hold the note to light to see an embedded thread running vertically to the right of the portrait. The thread is imprinted with the text USA 50 and a small flag in an alternating pattern and is visible from both sides of the note. The thread glows yellow when illuminated by ultraviolet light.

Color-Shifting Ink: Tilt the note to see the numeral 50 in the lower right corner on the front of the note shift from copper to green.

• $100

Security features:

Watermark: Hold the note to light and look for a faint image of Benjamin Franklin in the blank space to the right of the portrait. The image is visible from both sides of the note.

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.

3-D Security Ribbon: Tilt the note back and forth while focusing on the blue ribbon. You will see the bells change to 100s as they move. When you tilt the note back and forth, the bells and 100s move side to side. If you tilt it side to side, they move up and down. The ribbon is woven into the paper, not printed on it.

Bell in the Inkwell: Tilt the note to see the color-shifting bell in the copper inkwell change from copper to green, an effect which makes the bell seem to appear and disappear within the inkwell.

Color-Shifting Ink: Tilt the note to see the numeral 100 in the lower right corner of the front of the note shift from copper to green.