How to Tell if Money is Fake (2024)

With advances in printing technology, fake money that looks real can be challenging to identify. To spot counterfeits, look for the absence of features like security threads, UV properties, watermarks, color shifting inks, and others.

1. Security Threads: Since 2004, all bills $5 and larger have a clear thread embedded vertically in the bill that is visible when held up to the light. Each denomination has the thread at a different spot.
2. UV Properties: If you shine an ultraviolet light on a bill, the security thread will glow. Each denomination glows a different color.
3. Magnetic & Color Shifting Inks: Some counterfeit detectors can sense the magnetic properties of inks to tell if bills are real. Also, 2004 style bills $10 and greater have a color shifting numeral printed in the lower right front corner.
4. Watermarks: Bills from after 2004 have a watermark that is visible from either side when held up to a light.
5. Paper: Real currency uses special paper that is 25% linen and 75% cotton with tiny embedded red and blue fibers.
6. Size: Paper money is a very specific size. Some counterfeit detectors are capable of finding inconsistently-sized bills.
7. Microprinting: Tiny lettering that looks like a simple line to the naked eye is called microprinting. Real U.S. currency has this feature, which can actually be read with the use of a magnifying glass.

Fake bills can sometimes have a few of these features but it is difficult to replicate all of them perfectly. If your business receives a lot revenue in cash, it is a good practice to check for more than one sign of counterfeiting.

If you provide the proper tools and teach staff members how to spot fake money, you can reduce the amount your operation loses due to counterfeits. Many bars, restaurants, clubs, and resorts handle a lot of cash on a daily basis, which makes them vulnerable to counterfeit bills.

Some tools, like UV lights, are used to detect counterfeit money and can also be used to check the authenticity of patrons' ID cards. Checking IDs is required if your business serves alcohol, and taking extra steps to make sure those IDs are real can help to protect your establishment from liability.

Types of Counterfeit Money Detectors

If you suspect that you have received a counterfeit bill, you will want to report it to the U.S. Secret Service or the police right away.

The U.S. Department of the Treasury recommends the following steps:

1. Don't return the bill. Instead, observe and write down as much information as possible about the person or group that gave it to you. If possible, include physical descriptions and license plate numbers.
2. Contact the local police or the local U.S. Secret Service office right away.
3. Handle the suspected counterfeit money as little as possible. Place the note in a marked, protective cover like an envelope or plastic bag to keep it separate from your other cash.
4. Surrender the bill only to a police officer or Secret Service agent who has properly identified himself or herself. You can also mail it to the U.S. Secret Service field office that is closest to your location.