How Do Counterfeit Detectors Work? (2024)

Topics:Counterfeit Detectors

Counterfeiting has been around for ages, since the invention of currency. Criminals have been trying to pass counterfeit money as authentic cash for thousands of years. And it’s still a rampant problem today. Except now, technology has led to the creation of sophisticated counterfeit bank notes that are more difficult to detect than ever before.

How Do Counterfeit Detectors Work? (1)

Luckily, technology is also on our side. Rapid developments have reshaped counterfeit security features to make identification easier and duplicates harder to make. You no longer have to depend on sight and touch alone to detect counterfeit. You can use sophisticated counterfeit detectors to detect whether a bank note is counterfeit or genuine.

If you accept cash in your business, you should invest in counterfeit detectors. Whether you’re in retail, the restaurant industry, the gambling sector, the financial industry, or some other type of business, you may be at risk of counterfeit fraud. And counterfeit detectors can help protect you. Here’s how they work.

What Is a Counterfeit Money Detector?

A counterfeit money detector can come in many forms, but in its essence, it’s a machine that detects the security features of bank notes in order to determine whether any given bill is counterfeit or genuine. It uses one or several different methods of detection to verify bank notes through their security features. Some of these methods include UV, watermark, and metal thread detection. The more methods of detection that are used, the more accurate the machine will be as it is able to verify more security features.

UV Counterfeit Detection

UV is the most commonly used counterfeit detection method—it is seen in most of the lower-end devices with the lowest price points. A UV detector verifies the UV marks on authentic notes by shining ultraviolet light onto the bills. These UV marks are created through the use of non-visible dyes that are only visible under UV light. If the UV printed images glow when subjected to the UV light, then the bank note is expected to be authentic.

Magnetic Counterfeit Detection

Some counterfeit money detectors also use magnetic detection to identify the magnetic ink and metal threads placed on strategic areas of bank notes. This is also a common type of counterfeit detection.

Watermark Counterfeit Detection

In addition, some detectors will also use light to view watermarks that are built into authentic bank notes. These watermarks cannot be seen by the naked eye.

Size Detection

Newer, more modern counterfeit detectors can also detect whether or not the bill being verified is the right size. Bills are all created in a standard size, so any deviation would be a red flag for a fraudulent bill. Size detection adds an extra layer of protection.

Automatic Counterfeit Detectors

Though many of the least expensive note detectors still require your employees to make a judgement call on the authenticity of a bill, state-of-the-art counterfeit detectors will do all of the work for you. Automatic counterfeit detectors are the best way to accurately detect fraudulent bills. They are configured with advanced imaging software allowing them to detect the exact dimensions and features of bank notes with 100% accuracy. They will automatically reject counterfeits.

Protect Your Business

Counterfeit money detectors come in many designs and use several different types of detection methods in order to protect your business from fraud. Depending on the amount of money you need to scan and how often you need to use the device, you can find the right model that will meet your business’s needs.

At a low cost and a relatively easy training process, investing in counterfeit detection is a practical approach to retail loss prevention, particularly small businesses that cannot afford extensive security measures but are susceptible to counterfeiting. Through this simple security measure, you can greatly reduce your risk of counterfeit and protect your bottom line.

How Do Counterfeit Detectors Work? (2)

How Do Counterfeit Detectors Work? (3)

Andrea Lombardi

Andrea joined the CashTech team upon its inception in 2003. Learning the business from the ground up, she now utilizes her expertise in account management, planning, and negotiation while managing the daily operations of CashTech’s sales, marketing, and logistics departments. Andrea holds a bachelor’s degree from the University of Western Ontario. She enjoys travelling and has a passion for personal fitness, including obtaining her kettlebell certification. Andrea lives in Toronto with her husband and two young sons.

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How Do Counterfeit Detectors Work? (2024)

FAQs

Can a fake bill pass the pen test? ›

When someone uses the pen, the fakers solution can also cause counterfeit bills to pass a pen test. A second approach used to fake the pen is to use bleached lower denomination banknotes.

Do counterfeit pens work on new $100 bills? ›

A counterfeit pen reacts to the starch found in most types of paper. Genuine U.S. currency is printed on paper that does not have starch. Therefore, if the bill is genuine, the ink will turn yellow and if it's fake, the ink will turn black or dark blue.

How do you know if you have a fake $100 dollar bill? ›

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.

What is the #1 way to detect counterfeit? ›

Look for a security thread (a plastic strip) running from top to bottom. Beginning in 1990, an embedded (not printed) security thread was added to all bills except the $1 and $2 bills. If you hold the bill up to the light, you will see the strip and printing on it.

What color does fake money turn with the pen? ›

What color does a counterfeit pen turn? A counterfeit pen reacts to the starch found in most types of paper. Genuine U.S. currency is printed on paper that does not have starch. Therefore, if the bill is genuine, the ink will turn yellow and if it's fake, the ink will turn black or dark blue.

Which bill is easiest to counterfeit? ›

Which bill is the easiest to counterfeit? The $20 bill is the most commonly counterfeited banknote in the U.S., while overseas counterfeiters are more likely to make fake $100 bills.

What happens if you accidentally pay with a counterfeit bill? ›

While a criminal conviction for unwittingly using counterfeit cash is unlikely, criminal charges might stick unless you can convince the prosecutor otherwise. The use, possession, or making of counterfeit currency can violate both federal and state laws and carry stiff penalties.

How accurate are counterfeit detection pens? ›

Counterfeit detection pens are not always accurate and may give you false results. To learn about these and other security features in genuine Federal Reserve notes, visit the U.S. Currency Education Program website.

What two things should you do if you receive counterfeit bills? ›

Limit the handling of the note. Carefully place it in a protective covering, such as an envelope. Surrender the note or coin only to a properly identified police officer or a U.S. Secret Service special agent.

What is the most counterfeit dollar bill? ›

A superdollar (also known as a superbill or supernote) is a very high quality counterfeit United States one hundred-dollar bill, alleged by the U.S. government to have been made by unknown organizations or governments.

How do banks detect counterfeit money? ›

Micro-printing can be found around the portrait as well as on the security threads. the bills will glow: 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 pink. Hold the bill up to a light to check for a watermark.

How do you get rid of fake money? ›

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

What is the most common counterfeit item? ›

Top 9 Most Counterfeited Products in America
  • Consumer electronics and parts: $145.9 million.
  • Apparel and accessories: $116.2 million. ...
  • Medicines and personal care: $79.6 million. ...
  • Footwear: $54.9 million. ...
  • Computer and accessories: $47.7 million. ...
  • Labels/tags: $41.8 million. ...
  • Optical Media: $26.8 million. ...
Jan 28, 2023

How can you tell if a $1 bill is real? ›

The fine lines in the border of a genuine bill are clear and unbroken. On the counterfeit, the lines in the outer margin and scrollwork may be blurred and indistinct. Genuine serial numbers have a distinctive style and are evenly spaced. The serial numbers are printed in the same ink color as the Treasury Seal.

What is the most common counterfeit? ›

The Most Popular Fakes In The World
  • Footwear, e.g. Nike.
  • Luxury designers, e.g. Gucci.
  • Watches, e.g. Rolex.
Apr 22, 2022

Why do some dollar bills glow under black light? ›

Security Thread All genuine FRNs, except the $1 and $2, have a clear thread embedded vertically in the paper. The thread is inscribed with the denomination of the note and is visible only when held to light. Each denomination has a unique thread position and glows a different color when held to ultraviolet (UV) light.

What happens if you take a counterfeit bill to the bank? ›

The banks use their counterfeit currency detection measures and technologies to determine whether or not the note is genuine. Any fake money encountered is confiscated, and the Secret Service is called in. This keeps the counterfeit money out of circulation.

Does fake money burn red? ›

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.

What is the hardest money to counterfeit? ›

The Kiwi dollar (US$0.72/£0.50) is one of the world's least counterfeited currencies. It only has one counterfeited note or coin per 1,000,000 in circulation.

Who is the best counterfeiter ever? ›

488: Frank Bourassa | The World's Greatest Counterfeiter Part One. Frank Bourassa counterfeited and sold $250 million in fake US currency until he was nabbed in an undercover operation. Now he runs a security company and works with the police to catch other counterfeiters.

What is the #1 country for counterfeit money? ›

Responsible for producing and distributing an estimated 60 percent of the world's counterfeit U.S. notes, more fake American money comes from Peru than any other country, according to the Secret Service, which has been combating the currency's rise since 2003.

Who has the power to punish counterfeiters? ›

Article I, Section 8, Clause 6: [The Congress shall have Power . . . ] To provide for the Punishment of counterfeiting the Securities and current Coin of the United States; . . .

How to print money illegally? ›

To make an almost exact copy of money, first put a piece of 75% cotton and 25% linen paper in a color printer. Put a real dollar bill in your scanner and scan it to the computer. Repeat on the other side. Print your money double-sided and cut it out as neatly as you can.

How can you tell if a 50 dollar bill is real? ›

The $50 note includes an embedded security thread that glows yellow when illuminated by UV light. When held to light, a portrait watermark of President Grant is visible from both sides of the note. In addition, the note includes a color-shifting numeral 50 in the lower right corner of the note.

How can you tell if a $20 bill is counterfeit? ›

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.

How long do counterfeit pens last? ›

When properly capped and stored at room temperature, each pen has a maximum life to mark 25,000 bills.

Why do counterfeiters bleach money? ›

Why do counterfeiters bleach money? Counterfeiters sometimes collect dollar bills and bleach them to remove the ink. Using an old-style printer, they will print images of a higher-denomination bill on the bleached paper.

Does FBI investigate counterfeit money? ›

The Federal Bureau of Investigation (FBI) investigates criminal counterfeiting, piracy, and other federal crimes.

Can you keep counterfeit money? ›

These laws make it a crime to: Hold, pass, publish, sell, or attempt, any counterfeit currency with the intent to defraud. Make, forge, or pass counterfeit foreign currency with the intent to defraud. Buy, transfer, receive, or deliver counterfeit currency with intent that it be passed off as a genuine currency.

Why is it so hard to counterfeit money? ›

The characteristics of the banknote, such as the quality of the paper, watermarks, ink, and print quality, are all used to make it harder to counterfeit money and easier to help people recognize authentic currency.

What is the most secure money in the world? ›

The Swiss franc (CHF) is generally considered to be the safest currency in the world and many investors consider it to be a safe-haven asset. This is due to the neutrality of the Swiss nation, along with its strong monetary policies and low debt levels.

Was there ever a million dollar bill? ›

The United States has never issued a million dollar bill. However, many businesses print million dollar bills for sale as novelties. Such bills do not assert that they are legal tender. The Secret Service has declared them legal to print or own and does not consider them counterfeit.

What happens if you photocopy money? ›

Yes, printers can photocopy almost everything that is made of paper but not money. If you try to photocopy currency notes by using modern printers, they will either completely reject you or they will shut down on their own.

Does ATM check for counterfeit money? ›

It's would be pretty hard to get counterfeit bills past modern ATMs, which check for the magnetic ink patterns and other security features.

Why is counterfeit easier today? ›

Harder to detect, easier to make: This is the challenge posed by advancing technology in counterfeit money. Higher resolution, better color duplication and lower prices for printing have made it easier for counterfeiters to make passable fakes.

Which counterfeit item is most commonly seized by U.S. Customs? ›

The most pirated items included wearing apparel, accessories, watches, jewelry, and consumer electronics. “CBP commits substantial resources in intercepting and seizing products that infringe intellectual property rights such as trademarks, copyrights, and patents.

What designer items are most faked? ›

The most in-demand fake designer fashion brands

For two years in a row the Swiss watchmaker, Rolex, tops the list as the most in-demand counterfeit luxury brand. Annually, there are 312,000 searches around the globe for 'fake Rolex', as so many people want a lookalike of one of the world's most famous watch labels.

How can you tell if a dollar is rare? ›

How To Identify Bills Worth Up to $150,000
  1. The Series date located near the photograph of George Washington must read “Series 2013”
  2. The bill must have a “B” Federal Reserve Seal above the serial number.
  3. The serial number must end with a star (*) and fall between B00000001* – B00250000* or B03200001*-B09600000*
Feb 9, 2023

Do real $100 bills say copy? ›

Each of the bills also has the word “COPY” printed above the “100″ in the lower left corner on both sides. It's in small print and could be overlooked unless you look for it. Anyone who comes into possession of a fake bill is asked to contact the Norwood Police Department immediately at 315-353-2131.

What is a frozen dollar? ›

Albarasy explained that a frozen dollar is a real dollar that can be traded in the markets, but frozen banknotes that reach a bank would be seized and confiscated.

What is the most knocked off brand? ›

Ray-Ban, Rolex, Supreme and Louis Vuitton are the most copied brands worldwide, with Nike being the most counterfeited brand globally according to the Organization for Economic Co-operation and Development (OECD).

What percentage of $100 bills are counterfeit? ›

According to the United States Department of Treasury, an estimated $70 million in counterfeit bills are in circulation, or approximately 1 note in counterfeits for every 10,000 in genuine currency, with an upper bound of $200 million counterfeit, or 1 counterfeit per 4,000 genuine notes.

What percent of U.S. cash is counterfeit? ›

01 percent

What bills do counterfeit pens work on? ›

Do the pens work on currencies other than the US Dollar? No, Dri Mark counterfeit detector pens only work to detect the linen/cotton blend that only US currency is printed on. Do the pens work on old and new bills? Yes, old, and new US money is all printed on the same linen/cotton blend of paper.

What happens if you are given a fake bill? ›

Write your initials and the date in the white border areas of the suspect note. Limit the handling of the note. Carefully place it in a protective covering, such as an envelope. Surrender the note or coin only to a properly identified police officer or a U.S. Secret Service special agent.

Do counterfeit pen marks disappear? ›

"Dri Mark counterfeit pens mark the bills with a yellowish color and then disappear if the bill is real.

What is the most common counterfeit bill? ›

One estimate detailed that more than 75% of the nearly $600 billion in $100 bills circulates outside of the U.S. Due to its popularity, the American $100 bill is one of the most counterfeited currencies, but also one of the most difficult to fake.

Do banks check all bills for counterfeit? ›

Banks have strict security measures in place to detect fake money. First, they can spot it at the time of deposit and confiscate it so that it does not circulate among the public. Bank employees are trained to identify fake money through different security features of the bills.

Do banks take counterfeit bills? ›

Federal Reserve Banks do not accept deposits of counterfeit or unlawfully altered currency or coin.

How do you use a banknote tester pen? ›

Use the pen to make a small mark on the banknote. For the best result, chose a place on the banknote with as little printing as possible. If the ink mark turns into a bright, transparent yellow color, the banknote has passed the test and is likely genuine.

How do ATMs know money is real? ›

Besides the electric eye that counts each bill, the cash-dispensing mechanism also has a sensor that evaluates the thickness of each bill.

Can you go to jail for accidentally using counterfeit money? ›

Yes, you can actually be arrested for using counterfeit money, even if you didn't know it was fake. Both the federal government and local state governments impose penalties on an individual for using or attempting to use counterfeit money.

Can you deposit fake money into ATM? ›

It is against the law to deposit counterfeit money, whether it is via the teller, or via an ATM. They will discover it, and be able to trace it back to you (that's easily than you think). You will be charged with passing counterfeit bills.

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