How to Tell if Money is Fake

How to Tell If Money Is Real

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

Here are 7 ways to tell if money is real:

1. Security Threads: Since 2004, all bills $5 and larger have a clear thread embedded vertically in the paper that is visible when held up to the light. Each denomination has this 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 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 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 specific size. Some counterfeit detectors are capable of finding inconsistent sizes of 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 you can read with a magnifying glass.

Why Do I Need Counterfeit Money Detectors?

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 daily, 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 customers' ID cards. Checking IDs is required if your business serves alcohol, and taking extra steps to ensure those IDs are legitimate can help to protect your establishment from liability.

How to Spot Counterfeit Money

The best way to spot counterfeit money is to use a counterfeit detector. Separate options check different bill traits like security threads or microprint, so review all your options to find the counterfeit detector that will best fit your business's needs. Checking for multiple factors is also critical because technology improvements make fakes harder to spot.

Counterfeit Detector Pens

Counterfeit pens are a great starting point because they are easy to use. However, this type of detector will not work on bleached bills. As a standard method of counterfeiting, bleached bills have a lower denomination's printing bleached off, then are re-printed with a higher denomination.

How it Works: Use an iodine-based ink that reacts with starches contained in wood. The ink remains clear or slightly yellow for genuine bills but turns dark for counterfeits.

Tests For: Correct paper

UV Lights

UV lights are also inexpensive and easy to use. Simply shine the light over the paper to spot invisible security features like watermarks or hidden markings.

How it Works: Used to show the security threads, ribbons, and watermarks in money or markings on customers' IDs.

Tests For: Security threads, watermarks, hidden markings

UV Light and Counterfeit Pen Combos

A UV light and counterfeit pen combo allows you to test both the paper and invisible security features. This dual checker reduces the risk of a counterfeit slipping through the cracks.

How it Works: Has a pen on one end and a UV light on the other to test currency paper, security threads, and watermarks at once.

Tests For: Correct paper, security threads, watermarks

UV Light Systems

UV light systems are more complex than standard UV lights, but they detect the same things. However, they are designed specifically to test bills, so they have more accuracy.

How it Works: Features a UV light set in a base with indicators to show where security threads should be. Place a bill on the light to see if the security thread lines up correctly and glows the correct color.

Tests For: Security threads, watermarks

Currency Counter and Detector

For businesses bringing in high volumes of cash, a currency counter and detector is the safest option to quickly process a large number of bills. This machine counts your money and weeds out any counterfeits simultaneously.

How it Works: Most models use UV, magnetic, and infrared technology to find counterfeits.

Tests For: Security threads, magnetic ink, size

Magnifying Glasses

If you don't have options available, a magnifying glass works well in a pinch. It provides a closer view of bills for visible errors that could point to a counterfeit, but it relies on your staff knowing what flaws to identify.

How it Works: Allows you to look for errors in the printing of the bill, like the presence or absence of microprinting. They can also make it easier to read serial numbers.

Tests For: Printing errors, microprinting