Different Types of Counterfeit Money Detectors

Counterfeit dollar bills of any denomination may go unperceived at a glance. While many rarely give a second thought to the negative effects that counterfeit money has on society, there are several different reasons to fight this growing phenomenon. Some of these reasons include:

· Businesses are not reimbursed for counterfeit monies received, causing prices to go up for all consumers

· Decreased value of authentic bills of any denomination

· Inflation, or increase in prices may occur due to the unauthorized and artificial money supply growth

Unfortunately, developments in photocopying and computer technology have made the illegal reproduction of currency bills easier than ever. Because of this, it is important to play close attention to the money you handle in order to ward off any counterfeits. Whether at a bank, retail business, or even at home, a counterfeit bill detection device may be worthwhile if you handle large numbers of dollar bills. There are several different types of counterfeit money detection devices. The most common devices are described below.

Counterfeit Detector Pen

People who use color copiers and color printers for counterfeiting purposes attempt to create merely passable reproductions of paper money bills. These counterfeiters are not particularly cautious or accurate, so they copy or print onto normal, wood-based paper. Authentic bills are printed on special, fiber-based paper.

The counterfeit detector pen is a simple but effective concept. It utilizes an iodine solution that in turn reacts with the starch contained in wood-based paper. The result of the reaction between the iodine solution and wood-based paper creates an unmistakable black stain. When the solution contained in the pen is applied to the fiber-based paper used in authentic bills, no discoloration or reaction occurs. The pen does nothing but detect bills printed on normal copier paper instead of the fine papers used by the U.S. Treasury. Though simple, the counterfeit detector pen can be effective in detecting real-looking currency bills that are actually printed on regular paper.

UV Counterfeit Detection Machines

Banknotes that are created by a color copy machine or printer produce a superficial image that merely rests on the surface of paper. Because of this, the artificial image of the bill can easily be detected when an Ultra Violet light is placed over it. In addition, tiny particles of printer toner outside the image, also known as bleed can be easily seen with a UV light. Many bill counters have a UV light built into the machine. The UV counterfeit detection method is very effective, since it does not allow for human error. If a counterfeit banknote is run through the UV machine, an alarm or light will alert you that the bill is counterfeit.

More Counterfeit Detection Methods

Other types of counterfeit detection methods include:

Magnetic Detection or MG detection

- MG detectors detect the magnetic components found only in real bills. When the magnetic components are not present – the bill may be fake.

Magnifying Detection

- By being familiar with the different types of bills you deal with, you can use a magnifier to look for the special marks, symbols found only on authentic bills. This is a manual process.

Watermark Detection

- Watermarks are marks that are embossed into U.S. and foreign currencies. These watermarks can be easily seen when the bill is held up to fluorescent light. Watermarks are difficult to reproduce and when false, are easily detectable.

Lighted Reflection

- Some bills have a metallic, color changing emblem stamped onto the bill. For example, the U.S $100 bill has a stamp in the lower right hand corner that changes from black to green. This is easily detected by the naked eye.

Different countries have different legal punishments for those producing counterfeit money and the punishments are quite tough. The reason why the punishments are harsh is because counterfeit money reduces the value of actual money and causes inflation due to the increase of money being circulated throughout the economy. What this is is an artificial increase in the amount of money in the money supply that is not authorized. This severely devalues the currency and results in losses that can amount to millions of dollars each year.

The impact is so severe that, unfortunately, the companies that receive counterfeit money are not reimbursed for the fake bills, which force them to raise their prices on their products. Even in countries where their paper money makes up just a fraction of their total circulation of money, the effects of the counterfeiting may be minimal. However, the confidence in their currency may decrease significantly.

Beginning in 1996, the United States began making changes in the design of the $100 bill to keep it from being counterfeited. Other bills followed suit for 10 years after the initial change. The changes occurred as follows:

• 1997 the $50 bill
• 1998 the $20 bill
• 2000 the $10 and the $5 bill
• 2003 the $20 bill

However in 2004, the $50 bill had to be redesigned again as did the $10 bill in 2006. Fortunately, the $1 and $2 bills are seen to be not worth it for counterfeiters due to their low value although it is not out of the question for one of these bills to be reproduced.

Penalties by country

Every country has its own set of penalties for counterfeiters. Some just have to pay fines, some just serve time in jail, and then there are those who must serve time in jail in addition to paying fines for their crime. In the United States, counterfeiting is a federal felony that involves the Secret Service. When found guilty of this crime, the penalty is 15 years in prison as well as seizure of the property that was used in the creation of the counterfeit bills. Restitution will most likely have to be paid on top of a number of fines.

Another country that imposes a 15 year sentence is South Africa. They too have absolutely no tolerance for counterfeiters and will place them in prison in a heartbeat because of the adverse effects counterfeiting has on the economy.

As for Europe’s punishment for counterfeiting the Euro, offenders risk four years in jail and fines that could equal up to $120,000. If the crime is an organized crime, then the fines can be up to $360,000. This penalty seems considerably less than that of the United States and South Africa, but the fines may be considered punishment enough although the fines in the United States are determined based on severity of the crime.

In Canada, if someone is simply found holding a counterfeit bill, the penalty is up to 14 years in prison. Australia has a penalty of $5,000 for individuals, $10,000 for corporations and up to 2 years in prison in addition to the fines.

Counterfeiting bills poses a problem all over the world and it is worse in some places than others. It should be known that the bills can be traced to their maker and, once caught, those who produced the bills face severe punishment. It is common for the offenders to think they will never be punished for their crime, but there are ways in which they can and will be tracked down and made to pay for these crimes they commit against the economies of the world.

Anyone can receive counterfeit money no matter where they are. You can go to the bank and get that one $100 bill that was not checked when it was received by the bank. You then go to the grocery store and pay with that $100 bill when the cashier checks it was a special pen that indicates the bill is counterfeit. The cashier is silent and goes to her manager to show them the bill. All the while, you are standing at the checkout confused as to what is going on until the manager comes back to tell you that they must confiscate the $100 bill because it is counterfeit. They have already notified the authorities so the situation can be investigated. Now you are stuck with a cart full of groceries and you must wait for the police in order to tell them how you received the bill.

This is a situation that may be somewhat unusual, but some have experienced. They have been at no fault regarding the possession of a counterfeit bill because, if not checked properly, they can be distributed by banks, stores, and other venues in which money changes hands.

But what if you were on vacation and this happened? First of all, you’re not from the area and you just handed off a counterfeit bill. That makes you look quite suspicious and, unfortunately, can get you into serious trouble and ruin your entire vacation. That is why it is important to take certain precautions.

Precautions to take

One can never be too careful when traveling with cash. If at all possible, one might prefer to use traveler’s cheques or use a debit card or credit card. These items can be reported if missing, whereas cash cannot be replaced. Traveler’s cheques can be replaced if missing so your trip isn’t completely ruined. However, if you must carry cash, there are ways to protect yourself against receiving counterfeit money.

Depending on where you are in the world is going to determine what tools you need, but using items such as:

• A counterfeit pen detector can keep you receiving a counterfeit bill. Simply keep one in your purse or pocket to immediately mark the bill. The mark should show up clear if the bill is real and the mark will show up as dark if it is counterfeit. Although many retailers use these pens, cashiers can get into a huge hurry and forget to mark them.

• UV detectors can also protect you. These devices can come as pens or key chains that you can shine on the bill to make sure the security thread is inside the bill and that the denomination of the bill is printed on it. UV devices that work on U.S. bills also work on Canadian bills. When shined on a Canadian bill, the coat of arms along with the words FIVE CINQ and BANK OF CANADA BANQUE DU CANADA appear over the portrait in blue. The UV light will also pick up the red fibers on the bill.

It is also good to know about the different types of security used on the printing of bills even if you are visiting a foreign country and cannot find a counterfeit detection device for that particular currency. By doing this, you can immediately spot a counterfeit bill and call the authorities or return it as soon as you receive it and let them know that it is counterfeit. This can keep you out of trouble for circulating counterfeit money, especially when you are away from home and trying to enjoy yourself. This can also prevent the money from ending up in someone else’s hands.

Counterfeit money actually has a very long history, which means the concept is not really all that new. Currency has been around for a long time and with currency comes greed. They say that money is the root of all evil and counterfeiting is definitely not an exception. It involves creating artificial money for financial gain and deceives others in making them believe that it is real. It contributes to inflation that hurts the pocket books of people all over the world, it damages economies, and it hurts the reputations of the central banks of countries that are innocent because they are not the ones creating the fake cash. That is why governments impose harsh penalties against those caught making fake money.

But exactly how long has counterfeiting money been around? Well, it is true to say that it has been around about as long as money has been around. But how long has legitimate money been around? Well, it has been around approximately 2,700 years. Before that, our ancestors were trading sheep and cattle to get what they needed. They worked to acquire the things they had, but money was not their compensation. Their compensation was things needed in everyday living. The introduction of money changed everything, including how honestly some people made their living. Money became the way in which people acquired things, therefore things such as poverty worsened.

History

It was approximately 700 B.C. that real currency made its debut in the form of coins. It was within a hundred years of coins being introduced as currency that counterfeiting began. With it, the punishments began as well. Many cultures imposed death upon those caught counterfeiting coins. The practice wasn’t very difficult since the fake coins could very easily be made of metals that held no value, but looked like the real thing.

But it was in 1650 A.D. that paper money was developed and counterfeiting flourished, especially within America where counterfeit money was more common than genuine money. Counterfeiters had become so skilled that when the first federal coins were issued by the U.S. government in the 1780’s, they had the dies cut by an ex-counterfeiter in order to deter the practice, but it was during the Civil War that counterfeiting flourished once more because the United States government issued paper money for the first time.

As a result of this counterfeiting, the Secret Service was developed just to enforce the counterfeiting laws. Their job was to find the counterfeiters before the money ever made it into the money supply. Eventually, the Secret Service’s operations expanded to include the protection of the president, which is on a completely different spectrum from deterring counterfeiting, which was an operation conducted by the Treasury.

However, it was the late twentieth century that brought about machinery such as color copiers and other counterfeit detection devices that made counterfeiting easier. It is estimated that nearly $10 billion in counterfeit bills were circulated between 1990 and 1995. That is why the United States began making changes to their bills in 1996, beginning with the $100 bill. The United States Treasury believes that the new designs on the bills make counterfeiting almost impossible, but with each change it is just a matter of time before counterfeiters find new ways to duplicate the bills.

That is why the governments all over the world are imposing harsher penalties such as 15 years in prison on top of fines and restitution for the damage caused. They have also developed advanced methods to track down those creating counterfeit bills. In the end, the counterfeiters must know that they will get caught.

Receiving counterfeit money while in a foreign country is something that is not expected when traveling abroad. In fact, no one thinks to look up what to do when in a foreign country in case a counterfeit bill is received. It is definitely not out of the question that when money changes hands in a foreign country, especially with tourists, that a counterfeit bill may be involved. If caught circulating this bill, you could be in serious trouble with the authorities of that country, which not only ruins the trip, but goes a lot deeper than that.

Circulating counterfeit money is a very severe offense in the countries around the world. The reason why the crime is so severe is because counterfeiting poses a threat to the economy of that particular country. It results in financial loss for the citizens and has a harmful effect on the functioning of that country’s central bank and its reputation. When caught, offenders serve prison time. It depends on the country how much prison time is issued, but it is in your best interest to protect yourself in every way possible from becoming the latest victim of a counterfeiter. Even when circulating money with the best intentions, it is always good to know what is in your pocket.

Precautions

There are devices that can detect counterfeit currency in some countries. The internet contains wonderful information on how to obtain counterfeit pen detectors, ultraviolet lights, and other devices that can be used to detect a counterfeit bill. If the country you’re going to does not have devices that you can acquire, then learn as much as you can about the currency and its security features. There are such things as grains, swirls, watermarks, fibers and other elements that are placed upon currency in order to set it apart from that which is not real. These security features are difficult for counterfeiters to duplicate, so it is good to know what they are.

What to do if you receive a counterfeit bill

First of all, when receiving money after a transaction, be sure to look at it closely. Don’t worry what the cashier will think of you because you may be thankful you did this later on. If you are not sure a bill is counterfeit, but it look suspicious, ask the cashier to give you another one and explain your suspicions so that they can put the bill to the side to avoid circulation. If they have tools to check the validity of the bill, ask them to do so if it does not appear there are any marks on the bill from prior checks.

If it is determined that the bill is counterfeit from your own device, the device of the cashier, or from visual verification, ask that the cashier call the authorities so that the bill can be turned over to them and the situation investigated. If you are going to ask the store clerk to call the authorities, and the store clerk verifies that you received the bill from their till, you will not be in trouble and can enjoy your vacation. This prevents you or anyone else from circulating the bill any further throughout the country. This can also keep a lot of people out of trouble and also saves the economy of that country a lot of money.

What it comes down to is being vigilant and knowing what to look for. In educating yourself about the currency of a foreign country as well as scams that target tourists, you can enjoy your vacation without the worries of someone trying to make you take the fall for their illegal actions.

Where are you heading on your next vacation? Wherever it is you are probably going to stick out like a sore thumb. But who cares, you are having fun. Don’t let their stares get you rattled, it is your vacation and you worked hard to pay for it - so what if they snicker. Oh, just make sure you don’t get taken advantage of. Tourists and foreigners are prime targets for counterfeiters, they aren’t very familiar with the local currency and are set to relax mode so their suspicious sensors are turned way down. Check out this story from the Gazette about how counterfeiters are going strong in the UK.

POLICE in Cleveleys today warned traders to be on the lookout for fake cash.
A man ran from a shop in the town after trying to pay for goods with a counterfeit £20.

Now PC Quentin Allen, Cleveleys’ community beat manager, is concerned more dodgy notes may be in circulation.

PC Allen said: “We have only had one incident so far, but I’m urging shop staff to be on the lookout.

“These are counterfeits of the new £20 note.

“It hasn’t been in circulation for very long so people are only just getting used to them.

“That makes spotting what is a very good fake even harder.”

PC Allen was alerted to the fake currency on Friday last week when a man tried to spend one of the notes in a bakery store in the town centre.

He said: “The man wanted to pay for something of a very low value with a £20 note.

Suspicious

“Fortunately, the staff member had a special pen which can identify a fake.

“When she tested the note she was worried and said she would have to call the police.

“At that point the man turned and ran out of the door.

“It’s obvious he knew what he was doing.”

PC Allen is also worried about a woman spotted in the town acting suspiciously with large quantities of cash.

He said: “There is a woman in the town who has been pulling £20 notes from a large wad in her boots.

“That is certainly unusual and we are concerned she may also be involved.”

PC Allen said traders in the town should take precautions to prevent fake currency falling into their hands.

He said: “All stores should have the special pens which can identify a fake.

“They cost virtually nothing but could end up saving someone a fortune.”

Police are now hunting the man who ran from the store.

PC Allen said: “We do want to speak to him, to see how he is involved.

“The man was in his early 20s, with short, black hair.

“He was scruffy with no teeth and wore a black three quarter length anorak.”

So rather then spend your precious vacation days nervous or worried invest a mere eleven dollars and twenty nine cents (way less than you will tip the bellman) in a shiny new Universal Counterfeit Detector Pen and enjoy your well deserved retreat.

Over the past few years there have been countless reports of counterfeit bills being used in mainstream and local shops. The rise of counterfeit bills doesn’t seem to be stopping anytime soon but with a counterfeit detector you don’t have to worry because it is the best defense from these bills. The latest report comes from York County where several $100 bills where used at a local convenience store.

WAVY

York-Poquoson Sheriff’s investigators need the public’s help finding a man believed to be passing counterfeit money. Earlier this month, a man was captured on surveillance tape passing several fake $100 bills at a convenience store. “Several of the bills had the same serial number on them,” investigators said in a news release.

In some counterfeit cases, it’s an honest mistake, but Sgt. Dennis Ivey told WAVY.com, the suspect in this case was likely a professional. “When those are the only bills you pass and are not mixed in with real cash, that shows he wanted to get rid of those in exchange for tangible items,” he said.

The suspect bought a Western Union money order and cash card, Ivey said. He said no other business had been hit in connection to this case, but warned clerks and mangers to be prepared and patient in order to spot bogus bills. That’s why Christine Crawford, a clerk at a tobacco shop, has a counterfeit detection pen next to her register. “It’s the biggest weapon for me,” she told WAVY.com, “I haven’t gotten any yet, but if I do, I check everything,” she added.

It’s the attitude Ivey urges all clerks and business owners to have. “It’s just taking the time to really examine them and 9 times out of 10 you can tell if they’re counterfeit.”

The counterfeit bills circulating are a time bomb to anyone who deals with cash and the only defense is a counterfeit pen. No one knows where or when counterfeit bills will show up next, as Christine Crawford, the tobacco shop clerk, said “It’s the biggest weapon for me” all it takes is one swipe from the counterfeit detector pen to defend yourself from losing your profits over fake money that is circulating.

Counterfeit money is an uncommon yet unfortunate reality. The chances of receiving counterfeit dollar bills are very small, but not impossible. Many incidents have been reported of people unknowingly getting fake money from Automated Teller Machines (ATMs) and bank tellers.

If you suspect you have been given fake money by an ATM, there are many ways you can verify your suspicions. Compare the bill to another of the same denomination that you are sure is not counterfeit. Closely examine the printing, the patterns, the colors, the text and the feel of the paper. Does it feel and look the same? If so, then the bill is likely not counterfeit. If you notice any discrepancies, you are likely looking at a fake bill. Hold the bill up to a lamp and look for the verification strip running through it. Is it there? If not, you are surely looking at a fake. If you are still unsure, you can easily procure a special marking pen that will help you verify the bill’s authenticity.

If you suspect your bill is indeed a fake, do not try and spend it. Even though you came by the bill through honest means, trying to spend it is a crime and can get you in serious legal trouble. Even if you claim you didn’t know you were dealing with counterfeit money, you will have a hard time explaining your case to the police.

The first thing you should do if you draw counterfeit money from a bank machine is contact the bank. Most major banks in the United States have 24-hour telephone operators standing by to help their customers deal with problems and questions. Scan the area inside the bank. You’ll likely find the 800 number printed somewhere on or near the ATM machine. If not, flip over your bank card and look for the number on the back.

If you make contact, tell your bank’s representative about the situation in the utmost detail. The bank might also want to contact the authorities, local police or the U.S. Secret Service, which deals with issues of forged and counterfeit folding money.

If you are not able to contact your bank’s representative, call the police and apprise them of the situation. Make note of the time and the location of the ATM or bank. The police might want you to turn in the counterfeit money, or hold onto it and turn it in to the bank the next day.

Whatever you do, do not spend the money. I cannot express how important it is that you do not attempt to pass counterfeit money.

If you follow the correct procedures, you should be able to get your money back without incident. Unfortunately, that is not guaranteed. If you have trouble getting your money replaced, examine your renters’ or homeowners’ insurance policy, if you have one. Many of these policies have provisions safeguarding against counterfeit money, and you may be able to get your money replaced.

Nobody wants to get fake money from an ATM machine. But if you do, you should do your best to be responsible and rectify the situation.

In Hollywood’s infancy, filmmakers used real money in their productions, only to run into legal and administrative problems such as workers stealing the money. At the time, very strict laws prohibited the filmmakers from copying, photographing or imitating American currency in any way. This presented Hollywood with a tricky problem. Always resourceful, filmmakers found a way around it.

At the time, there happened to be large amounts of devalued currency printed by the Confederates during the American Civil War and Mexican Money printed during the Mexican Revolution. Both failed governments had issued a lot of money, hoping the volume would help stave off the money’s declining values. Of course, they failed and the money was useless until Hollywood bought up caches of both types of cash, and the first Hollywood prop money was created.

Over time, the Confederate and Mexican folding money wore out, and most of it was thrown away or lost. By then, laws governing the reproduction of fake currency had loosened somewhat. Prop-making manufacturers began to print false money.

Much of this early fake money is now available via specialty Hollywood memorabilia stores. The makers of this money often copied Mexican and Confederate designs and used deliberate misspellings like “Steats of Amreica” to be sure the money could not be passed off as real. Many of these designs are interesting and very beautiful to look at. Though the designers were making obvious fake money, they took the time to make it look great.

In more recent history, laws loosened even more and the stacks of prop dollars being printed by manufacturers became even more convincing. There have been several incidents where the Secret Service (which oversees American currency and stings counterfeiters) has stepped in and confiscated Hollywood prop money, and forced companies to discontinue printing it.

In one notable case, bills with a total face value close to $1 Billion was blown up during the filming of “Rush Hour 2” in Las Vegas. A significant amount of the fake money, which happened to be very convincing, drifted into crowds of people in Las Vegas. Knowingly and unknowingly, people began to use the bills. Large amounts of this money began turning up in the Las Vegas and Los Angeles areas. Many bills were being passed successfully.

As the incident grew more widespread, the Secret Service got involved and the company that produced the bills, Indepenedent Studio Services, Inc., became embroiled in legal trouble. The Secret Service deemed their fake money product too realistic and seized the prop money from ISSI’s facilities. Evenutally the company had to stop printing fake money altogether.

Today, prop money is still widely available via memorabilia stores, prop suppliers, private collectors and online auctions. But this prop money is almost always obviously fake, with indicators printed on the bills. Also, much of this fake money is smaller than its real counterpart.