counterfeit currency: a guide to identification · 2019. 8. 28. · notes or currency which is...

Counterfeit Currency: A Guide to IdentificationProduced by the Intelligence Section, Tri State Enforcement Regional Authority

October 2018

Intelligence Section

Updated: 01JUL19

Counterfeit Currency: A Guide to Identification 2

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Intelligence


Preface: TSE Intelligence Section

A high priority of this Agency is to empower our partners, clients, and communities through leadership and education. As leaders, it is our duty to ensure we share our knowledge and expertise with those in need; as well as those who gain meaningful benefit - resulting in improved safety, security, and quality of life.

Apart from some of the more routine duties and responsibilities of this Agency, joint collaboration by Agency practitioners and experts contribute to the production of guides such as this; which serve to educate and empower our partners, clients, and the communities we serve.

This guide should serve to assist in the detection of counterfeit US currency, with a focus on point of sale transactions. While our society continues to push forward utilizing increasing levels of technology and cashless transaction options, many individuals and businesses continue to handle untold amounts of physical cash currency on a daily basis.

Though the Federal Government is making it increasingly more difficult to produce counterfeit currency, many individuals involved in organized crime; as well as those with intricate knowledge, continue to thwart the efforts of anti-counterfeiting security measures.

Sincerely,

D. T. ConnerIntelligence SectionTri State Enforcement

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Introduction

The guide presented herein is meant to establish a baseline understanding of the identification and detection of counterfeit United States 'paper' currency.

Counterfeit 'paper' currency varies drastically, and quality is generally dependent on those involved in the production and/or manufacturing process. Individuals may be tempted and begin experimenting at home using a simple and inexpensive flat-bed scanner and color printer. Through trial and error, these individuals may refine their process, moving on to more sophisticated scanning and printing techniques. Currency produced in this manner is generally easier to detect, however, it is becoming somewhat less prevalent; in part to more advanced security and anti-counterfeiting features incorporated in authentic currency.

On the other end of the spectrum is where higher-quality counterfeit notes are sourced. These are individuals or organizations who have a more intricate knowledge of production techniques; or have devised methods in which currency is defaced/altered and re-purposed or re-used. Generally this type of production results in very convincing counterfeit currency, and production is frequently seen in gangs, organized crime syndicates, and groups sponsored by nations or states who are enemies of, or hostile against the United States of America.

Worth mentioning are those counterfeit notes which are specifically produced for prop, or entertainment usage. These notes are generally of the same quality and caliber as their authentic counterpart. Notes are required to be marked as such, however they have been passed and accepted as authentic in the recent past.

Counterfeit currency has a detrimental impact on our nation's economy, thus the detection of counterfeit notes is of high importance to national security. As technology grows, many businesses both large and small are becoming more reliant on machines and automation to detect counterfeits. This approach however is only effective in the detection of bills that are of low quality. For the higher quality of counterfeit currency, a manual examination of the note in question is most always a necessity.

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Counterfeit Notes

Counterfeit (Defined:) to illegally produce an imitation or duplicate an article with the intention to present the article as authentic, thereby taking an economic advantage of the real and/or perceived value of the authentic item.

Notes or currency which is counterfeit is an article which appears to be, or otherwise closely resembles an authentic article; and is produced unofficially without the sanction of the government. Counterfeit currency can lead to increased currency in circulation, and potentially lead to both inflation and devaluation.

Recipients of currency which is counterfeit are often times faced with numerous hurdles. Reporting procedures, reimbursement concerns, and issues with the victims' bank or financial institution are all commonplace. Those individuals and/or organizations engaged in the production of counterfeit notes generally realize hearty profits; and may also be engaged in activities which are against or target the United States of America.

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Denominations in Circulation (2018)

As of 2018, there are seven different denominations of official United States 'paper' currency in circulation.

Those with minimal security and anti-counterfeiting measures implemented are:

$1 One Dollar Note$2 Two Dollar Note

The remaining five have increasingly complex security and anti-counterfeiting measures present. These are:

$20 Twenty Dollar Note$50 Fifty Dollar Note$100 One Hundred Dollar Note

Individuals and organizations engaged in the production of counterfeit notes face increasing difficulty the higher face value of the note they attempt to duplicate. A one dollar note is considerably easier to counterfeit versus a twenty dollar note.

Currency is never recalled, and only upon physical wear and tear (deterioration;) are notes removed from circulation. Features and appearances have changed over the decades, with the first major change to United States currency occurring in 1996.

In 2004, United States currency once again was updated with enhanced security and anti-counterfeiting measures, and updates continue to periodically be 'rolled out' as time goes on.

$5 Five Dollar Note$10 Ten Dollar Note

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Basic Detection Overview

While the passing of counterfeit currency may not be a regular occurrence for you or your organization, counterfeit notes are somewhat easy to detect.

Item One: The Portrait

While examining currency for authenticity, look for clear and crisp detail in the portrait presented on the obverse (front of the note.) The eyes should appear life-like, and the overall image should be perfectly clear and free of defects.

Item Two: Seals & Border

Closely examine the Federal Reserve and Treasury Seals. The fine cog-like pattern comprising their outer edge should be crisp and sharp. Likewise, the border making up the outer edge of the note should be clear, crisp, and precise. In many counterfeits, these details appear hazy, broken, or fuzzy; and lack the clarity of their genuine and authentic counterparts.

Item Three: Serial Numbers

Notes have their serial number in two places, and should be identical. The color, shade, and saturation of the serial numbers match that of the Treasury Seal. Counterfeit notes generally have mismatched colors, and frequently display serial numbers which are crooked; or placed in a location which is incorrect.

Item Four: The 'Paper'

Authentic notes are not "printed," and "paper" is not used in their production. Authentic notes are produced on a special linen, and security fibers (blue, red are woven into the linen. These fibers are embedded, however counterfeiters will attempt to duplicate this feature by printing tiny red and blue lines; which are clearly not embedded - and are fuzzy in appearance. Authentic notes have a distinctive feel, which is nothing like paper. How the note "feels" is and indication of something which may be amiss.

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Visual ComparisonLook for the details that are visually incorrect, and for notes that feel different. Below, are some examples of the visual differences you may encounter.

Authentic (Left) Counterfeit (Right)A genuine note will feature a realistic and crisp portrait, which will distinctly stand out from the background. The portrait is composed of very fine features which is virtually impossible to duplicate through a printing process.

The cog-like outer ring of the Federal Reserve and Treasury seals are crisp, clean, and sharp as seen on a genuine note. Counterfeit notes feature seals which are often discolored, blurry, and lack overall clarity.

Borders of genuine notes feature intricate scrolls, lines, and patterns; which are crisp, clear, uniform and unbroken. Counterfeit notes however, may show this detail in a blurry, off-center, broken, or fuzzy way. Another tell-tale sign is the presence of 'dots' which are produced from using an ink-jet printer.

The serial numbers seen on genuine notes have a distinct and uniform style, color, and placement. The color should match that of the Treasury Seal on an authentic note. Counterfeit notes frequently feature serial numbers which are a different color or shade; and the placement, alignment, and/or spacing may be imperfect.

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Visual Comparison (Continued)

Authentic (Left) Counterfeit (Right)

The 'paper' of genuine currency features tiny fibers embedded within, which is almost impossible to reproduce. Individuals and groups engaged in counterfeiting will frequently make an effort to print small red and blue lines on their created notes, however it is easy to differentiate between the ink dots which make these printed lines versus the authentic fibers.

Did you know: The distinctive 'paper' used in the production of authentic US currency is a closely guarded national secret. It is a criminal offense to possess, utilize, or reproduce the authentic currency 'paper.'

Mismatched (Frankenstein) NotesCounterfeiters will sometimes alter a note in an attempt to increase "face value." In this method of counterfeiting, the actors will often affix numerals from a higher "face value" note, to one of a lower value. This type of counterfeited note is also referred to as "raised notes."

A visual screening of these notes will quickly reveal it's shortcomings. The numerals in the corners will be inconsistent with the portrait which should be present, the crosshatch denomination featured through the Treasury Seal, and the written denominations located at the bottom of the note.

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Security Features ($10, $20, $50 USD Notes)The higher denomination of a particular note, the more advanced security and anti-counterfeiting features will be incorporated. All notes have common security features.

$10 USD ('04 - Cur.)

In this example of a $10 note, many of the embedded and difficult-to-duplicate security features are shown.

$20 USD ('04 - Cur.)

In this example of a $20 note, you can further see:

1, 2, 6 - Microprint3 4 5 7 8

- Watermark- Color Shifting Ink- UV Security Thread- Anti-Duplicating Measure- EURion constellation

$50 USD ('96 - '03)Again, many security features are present, including the micro-printing, security thread, watermark, and color-shifting ink. Major differences are the lack of color printing, and the EURion constellation.

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$50 USD ('04 - Cur.)Features many of the same advanced security features as seen on the 04-Current production $20 USD notes as seen above.


Security Features ($100 USD Notes - Current Production)

The highest denomination note currently produced in the United States is the $100 note. The newest generation features security and anti-counterfeit methods not previously seen.

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Prop Notes ($100 USD)Due to enhanced security features, many counterfeiters look to "Prop Cash" to reduce or eliminate their need to produce counterfeit notes. Since the introduction of the newest generation $100 USD note, "Prop Cash" has been the most common instance for criminals and counterfeiters to pass off their illegitimate notes.

The counterfeit, pictured on top, was recovered by the Kennebec County, Maine Sheriff's Office; after a business owner discovered the note. This counterfeit is a prop/production piece, which is commonplace in movies and television shows. The 'paper' used in its production is eerily similar to that of authentic notes, however it clearly states on the obverse "For Motion Picture Use Only."

For comparison, a genuine $100 USD note is pictured on the bottom.

Here, another "Motion Picture Use Only" note was used, and recovered by the Michigan State Police.

To the right, another instance of "Prop Cash" is pictured. There are many different companies who commercially manufacture these prop notes.

Some companies produce incredibly authentic-looking notes, which can be very difficult to distinguish from genuine notes at a quick glance.

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Reproduced Notes ($100 USD - Current Production)

Aging Notes ($100 USD)

Older currency, specifically $100 USD notes, will be preferred by counterfeiters, as the charges they face if caught make no distinction based on the note's "face value."

Older style notes are considerably easier to pass. As pictured to the right, these two notes were recovered by Philadelphia police in 2017, after being successfully passed to a local business.

Another example of a recovered counterfeit $100 USD note. Examine the note and notice it passed the 'pen test' as seen on the left side of the note.

Image courtesy of Hartford, CT Police.

This note, a true "counterfeit" was recovered in Canada. This counterfeit successfully reproduced many of the security and anti-counterfeiting measures, however the serial number was mis-aligned, which was the indication of the fraudulent note.

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In Closing

While a variety of processes exist to produce counterfeit currency, be aware of the usage of "Prop Money," which is becoming increasingly common with the newest generation of $100 USD notes.

Be aware of the way money 'feels.' Many inexperienced or low-tech counterfeiters utilize common papers, including cotton and parchment papers to counterfeit US notes. The reality is, these off-the-shelf papers will never feel like the authentic 'paper' utilized in the production of authentic US currency.

Color, hue, placement, and clarity are frequent indications of counterfeit cash currency. The United States Federal Government and its many agencies involved in the production of our physical currency have countless processes, procedures, and techniques in use to not only eliminate errors; but also to ensure each note is essentially "perfect." Authentic notes are, for all intents and purposes, flawless and perfect in every aspect.

Beware of the limitations of counterfeit detection pens and markers. There are several methods in which counterfeiters can produce notes which can pass this test.

Finally, be aware of an individual's body language, and their speech. Many times, individuals attempting to pass counterfeit cash will exhibit nervous and uneasy behavior, or will wear a hat and/or sunglasses inside; in an attempt to 'hide in plain sight.' Excessive talking when producing the cash, failure to maintain eye contact, shaking hands (tremors,) and excessive sweating can all be possible indicators of something wrong.

Paying some closer attention to presented notes, as well as the individuals who present them will result in higher identification of counterfeit and fraudulent notes. If a note is suspected of being counterfeit, be sure to follow the established procedures of your employer (if applicable.)

Do not put yourself in danger, and report the incident to the appropriate authorities as soon as possible. If safe to do so, make an attempt to gain as much information about the person as possible, including but not limited to their name, clothing description, race, age, etc. If they flee, do not attempt to stop them. If they leave in a vehicle, (and if safe to do so) get their car's make, model, color, and license plate number. Be sure to provide this information as soon as possible to the appropriate authorities.

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A Community Service Publication by TSE

Produced by the Intelligence Section, Tri State Enforcement Regional Authority

October 2018

IntelligenceSection

Updated: 01JUL19

www.TSEonline.org

counterfeit currency: a guide to identification · 2019. 8. 28. · notes or currency which is...

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