Know Your Money!!
During the American Civil War, one-third to one-half of the nation’s currency in circulation was fake. By 1865, the necessity of enforcement measures to suppress the widespread forgery led to the establishment of the famous United States Secret Service, which today, through Title 18 of U.S. Code, Section 3056, still holds exclusive jurisdiction for cases involving the counterfeiting of U.S. “obligations and securities”. These include U.S. currency (paper money and coins), U.S. Treasury checks, Department of Agriculture food coupons and U.S. postage stamps.

The Secret Service works with state, local and sometimes even foreign law enforcement agencies to pursue phony moneymakers. Although greatly decreased since the Secret Service has been on the job, the crime of currency counterfeiting is once again on the rise and poses a potential serious threat not only to the nation’s economy but world economy as well. The advancement of digital technology has made production — by just about anyone anywhere in the world — of large quantities of counterfeit currency in a very short time relative child’s play. The Secret Service tries to stay a step or two ahead of counterfeiters by working hand in hand with the Bureau of Engraving and Printing (not to mention the Federal Reserve) to stay on top of the latest reprographic/lithographic technologies, but it still requires the cooperation of the public to crack down and control this crime.

For anybody who handles money in any way shape or form – and who doesn’t? — that means becoming more familiar with currency. The U.S. Secret Service has set up a website with sections called How to Detect Counterfeit Money and Know Your Money to offer advice on how to guard against forgery losses. But here are some pointers for spotting fakes in the newer paper currency:

U.S. bills always feature a picture of someone, typically a long dead president, although not always. (Benjamin Franklin is on the $100 note, for example.) The portrait should be lifelike and not blend into the background. When held up to the light, most real money displays a “ghost” image of the president or politician featured on the bill.

All U.S. paper money has a unique serial number. Serial numbers should be evenly spaced and printed in the same ink color as the Treasury Seal. Authentic currency paper is embedded with tiny red and blue fibers. Although the Secret Service does not yet include them in their guidelines for detecting phony bills, there are also counterfeit banknote detection pens available to the public for about five dollars that contain an iodine-based ink. When the pen is used to mark genuine bills, the mark is yellowish or clear.

To find out more about new U.S. currency designs, anti-counterfeiting features, replacement of damaged banknotes and other money facts, visit the website of the U.S. Bureau of Engraving and Printing. Or see the web page of the Treasury Department’s Financial Crimes Enforcement Network for more information on fighting other financial crimes, including terrorism financing and money laundering.