Protecting Your Business from Counterfeit Currency

The first step to fighting back against counterfeit currency is to know the ins and outs of what a legitimate bill looks like. Familiarize yourself with the security features of true U.S. currency so you know what to look out for. You can view examples of all denominations through the U.S. Currency Education Program website. Each note issued by the Federal Reserve includes unique security and design features that are periodically redesigned by the U.S. government to make them more difficult to counterfeit, so make sure you stay up-to-date on what’s new.

Embrace your tactile senses and take time to feel the quality of the cash you are being presented with. U.S. currency paper consists of 25% linen and 75% cotton with red and blue security fibers embedded throughout the paper that is not sold commercially, giving them a unique texture and feel. If you are presented with a bill that feels slick, there’s a good chance it was printed on lower-quality paper and has been counterfeited. In addition to the feel of the paper, genuine bills will have raised ink which adds to their unique feel.

According to the Federal Reserve, counterfeit detection pens are not always accurate and may give you false results making them not the most proactive way to detect counterfeiting. The iodine-based ink used in detector pens reacts with starch in wood-based paper to create a blue or black mark. Modern U.S. currency uses cotton and linen fibers that do not contain starch, however, bills printed prior to 1959 still contained starch so they may appear counterfeit with a pen when they are actually not.

Instead of relying on counterfeit pens, shed some light on the situation – literally. Ultraviolet lights can reveal hidden security features present in genuine currency, such as fluorescent threads and markings. For example, true $5 bills will have a thread that glows blue when illuminated by ultraviolet light. There are also hidden water marks unique to each denomination that can be easily viewed by holding them up to a light source. Some counterfeiters will try to wash off lower denominations and reprint a higher denomination on the same bill to make it feel legitimate. Taking a few seconds to hold the bill up to the light will reveal the hidden watermark identifying it as a $5 bill instead of a $20 bill.

It happens more often than you think, someone tries to pass off a clearly labeled movie prop bill for legitimate currency. While they may look convincing on the silver screen, they’re not legal tender in the real world. Movie prop bills can be easily identified because they will have ‘For Motion Picture Use Only‘ printed on them. Make sure your employees know that these cannot be accepted as legal tender and that they should kindly inform the presenter that their Hollywood dreams won’t pay the bills here.

It is important to share your knowledge with fellow business owners and employees. There can be upticks in counterfeit currency periodically because counterfeit rings will try to pass off a large chunk of bills within the same area before moving on to somewhere else. If you are noticing more and more illegitimate bills, don’t be shy in spreading the word so others know to keep a wary eye out. By working together, you can create a united front against counterfeit currency and protect your community.

You can set your employees up for success by arming them with the right tools so they feel prepared to fight back against counterfeiters. The U.S. Currency Education Program offers a free online training course and downloadable cashier toolkit. Make it a part of your new hire training to take this course and keep a copy of the toolkit at each register as a reminder of what to look out for.

If you do encounter counterfeit currency in your business, it will need to be reported. You can get instructions on how to report a counterfeit bill online or by visiting your local First Bank branch. Try to remember the physical characteristics of the person who passed you the suspect counterfeit, and if possible write down their license plate number and vehicle description.