Counterfeit currency is a persistent problem for collectors, making it essential to understand the signs that differentiate authentic money from forgeries. Spotting fake currency involves careful observation and the use of certain tools to verify a bill’s legitimacy.

In this guide, we’ll cover practical methods to detect counterfeit money, protect your investments, and ensure that your collection remains valuable. Whether you’re handling dollars, half dollars, or rare finds like civil war tokens, these tips will help you stay vigilant.

General Features of Authentic Currency

Modern currency is designed with several built-in security features to deter counterfeiters. Familiarizing yourself with these features is one of the best ways to detect fake bills.

• Watermark: A watermark is usually incorporated into genuine banknotes and becomes visible when held up to light. This image often matches the portrait on the bill itself.
• Security Thread: Embedded in the bill and visible when held up to light, this thin strip typically features microprinting that indicates the denomination. In U.S. currency, this thread glows under ultraviolet light—green for $20 notes, yellow for $50, and blue for $5.
• Color-Shifting Ink: Many banknotes use color-shifting ink on large numerals or denomination markings. When tilted, these areas of the note should shift from one color to another.
• Microprinting: High-quality printing with fine, small text is used on authentic notes. This text is hard to reproduce with conventional printers and should appear crisp and legible when viewed under magnification.
• Raised Printing: Genuine notes often feature raised printing, which provides a slightly textured feel. Running your fingernail over the surface of a real banknote should reveal this texture, as the ink is pressed into the paper during production.

Spotting Fake U.S. Currency

Collectors in the U.S. should be familiar with specific features that indicate the authenticity of U.S. currency. For example:

• Examine the Watermark: Hold the bill up to light and confirm that the watermark matches the portrait on the note. If it’s missing or does not match, the note is likely counterfeit.
• Check the Security Thread: The thread embedded in the bill should be easy to spot when the bill is backlit. Look for a continuous strip embedded in the paper, not printed on it.
• Feel for Raised Printing: Run your fingernail over the note’s surface to detect a raised texture. If the note feels flat or too smooth, it might be fake.
• Inspect Color-Shifting Ink: Tilt the bill to check if the numeral in the lower right corner changes color. If the ink doesn’t shift from one color to another, it may indicate a counterfeit.

Additional Tools for Detecting Counterfeits

While basic visual checks can help spot many fake notes, several tools can enhance your ability to identify counterfeit money:

• Ultraviolet Light: Certain denominations of U.S. currency feature security threads that glow under UV light. Using a UV light to check your bills is a quick and effective way to confirm their authenticity.
• Magnifying Glass: A magnifying glass can reveal microprinting and other intricate details that are difficult to reproduce. These details are often used in genuine currency to deter counterfeiters.
• Counterfeit Detection Pens: These pens react to the type of paper used in counterfeits. While not foolproof, they can provide a quick check, particularly in a high-risk situation.

Protecting your collection from counterfeits is of utmost importance as a collector. Whether you’re trading dollars, half dollars, or rare collectibles like Civil War tokens, our team at Coin Exchange is here to assist. Feel free to visit us in-store or explore our extensive collection online to learn more about safely building your collection.