How to detect counterfeit bills without the gadgets

There are so many gadgets out there that is supposed to detect counterfeit bills such as the marker/pen, UV light machines, magnifying glass, etc.

During the many years in the retail business, there was one sure way to check for counterfeit bills using yourself without looking awkward or using any of these anti-counterfeit gadgets.

What is it?  Your own thumbnail.  Yep.  As you receive the bills (usually $20 bills and up – cons rarely make $1, $5 and $10 counterfeit bills), you can discreetly scratch the collar of the president on the face of the bill.  This is called the “Raised Printing” part of the bill.

When you scratch this part of the bill, you should feel some scratchy resistance.  I call this a “Scratch Test”.

If this part is smooth like the rest of the bill, this is when you want to use the anti-counterfeit gadgets and further procedures such as noted by the U.S. Treasury Department:

• Color-shifting ink: If you hold the new series bill (except the $5 note) and tilt it back and forth, please observe the numeral in the lower right hand corner as its color shifts from green to black and back.
• Watermark: Hold the bill up to a light to view the watermark in an unprinted space to the right of the portrait. The watermark can be seen from both sides of the bill since it is not printed on the bill but is embedded in the paper.
• Security Thread: Hold he bill a light to view the security thread. You will see a thin embedded strip running from top to bottom on the face of a banknote. In the $10 and $50 the security strip is located to the right of the portrait, and in the $5, $20 and $100, it is located just to the left of the portrait.
• Ultraviolet Glow: If the bill is held up to an ultraviolet light, the $5 bill glows blue; the $10 bill glows orange, the $20 bill glows green, the $50 bill glows yellow, and the $100 bill glows red – if they are authentic!
• Micro printing: There are minute micro printing on the security threads: the $5 bill has “USA FIVE” written on the thread; the $10 bill has “USA TEN” written on the thread; the $20 bill has “USA TWENTY” written on the thread; the $50 bill has “USA 50” written on the thread; and the $100 bill has the words “USA 100” written on the security thread. Micro printing can be found around the portrait as well as on the security threads.
• Fine Line Printing Patterns: Very fine lines have been added behind the portrait and on the reverse side scene to make it harder to reproduce.
• Comparison: Compare the feel and texture of the paper with other bills you know are authentic.

These are good measures to take to further identify fraud but let’s be realistic, there really is no time to focus this much detail on one single bill when your business is busy.  This is why counterfeit bill cons will usually use the fake bills in a busy establishment.

Flaws in other counterfeit detection methods to be aware of:

Counterfeit Pens – Good quick way of detection but,

• Marks the old bills as fake when it’s not.  Not good when you accuse a customer of fraud when the customer is only trying to shop in your establishment with a legit bill.
• Some cons will mark a tan slash on the fake bill where most cashiers will note it as if the bill had been checked elsewhere.

UV Machines – Better way of checking for fraud bills but,

• Most are expensive
• Still not 100% foolproof.  Like the pens, does not work on some older bills.

A good Counterfeit Bill will pass…

• The overall appearance
• The counterfeit pen (it will mark tan like a legit bill)
• Watermark check through light
• The security strip test (inserted with a fake one)
• Texture and feel of the bill

True stories:

• A merchant receives a $100 bill on a less than $5 purchase from a customer.  When the owner of the store hears of this purchase, he became suspicious of the transaction.  When he looked at the $100 bill, it looked fine except for the texture of the bill.  It felt slightly firmer than regular paper money.  He marked the bill with the counterfeit pen and it marked with the passing tan color.   He then checked for watermarks and the security strip through the light and it was all there.  The owner was still not satisfied with the texture of the bill.  Finally, he decided to check the authenticity of the security strip.  With a small tear on top of the bill, the owner pulled the security strip out of the $100 bill.  The security strip was fake and it was indeed a counterfeit $100 bill.
  Errors –
  The scratch test was never done.
  If the simple scratch test was performed by the cashier, he would have known that something was wrong with the bill.
  The customer purchased an item that was less than $5 with a $100 bill.
  Even though this is common, a red flag should go up whenever a customer wants over $90 in change for such a small purchase – especially when the texture of the bill doesn’t feel right.

• After a busy day, a cashier was closing out her register when she noted a fake $20 bill during her money count.  The $20 bill was actually a $1 bill with the all four corners taped with corners from other $20 bills.
  Errors –
  No matter how busy, you’ll always have time to glance at the money.
  Red flags should go up whenever there is tape or excessive makings on paper money.

In the mid 1990’s, I printed a fake $20 bill using a home computer and printer.  I took additional simple steps (that I will not mention here) to complete the look and the feel of the fake $20 bill.  When the fake bill was shown to my friends without revealing the fake, none of them could figure out what was wrong with the bill.  Bottom line – take time to know how paper money looks and feels.  Also, scratch test every bill you get in your hand.  ‘Nuff said.

1/11/2012