Counterfeit Money

Counterfeiting of money is one
of the oldest crimes in history. It
was a serious problem during
the 19th century when banks
issued their own currency. At
the time of the Civil War, it was
estimated that one-third of all
currency in circulation was
counterfeit.
At that time, there were
approximately 1,600 state banks
designing and printing their
own notes. Each note carried a
different design, making it
difficult to distinguish the 4,000
varieties of counterfeits from
the 7,000 varieties of genuine
notes.
It was anticipated that the
adoption of a national currency
in 1863 would solve the
counterfeiting problem.
However, the national currency
was soon counterfeited so
extensively it became necessary
for the Government to take
enforcement measures. On July
5, 1865, the United States Secret
Service was established to
suppress counterfeiting.
How To Detect Counterfeit
Money
Look at the money you receive.
Compare a suspect note with a
genuine note of the same
denomination and series, paying
attention to the quality of
printing and paper
characteristics. Look for
differences, not similarities.
Portrait The genuine portrait
appears lifelike and stands out
distinctly from the background.
The counterfeit portrait is
usually lifeless and flat. Details
merge into the background,
which is often too dark or
mottled.
Federal Reserve and
Treasury Seals On a genuine
bill, the saw-tooth points of the
Federal Reserve and Treasury
seals are clear, distinct, and
sharp. The counterfeit seals may
have uneven, blunt, or broken
saw-tooth points.
Border The fine lines in the
border of a genuine bill are clear
and unbroken. On the
counterfeit, the lines in the
outer margin and scrollwork
may be blurred and indistinct.
Serial Numbers Genuine serial
numbers have a distinctive style
and are evenly spaced. The serial
numbers are printed in the same
ink color as the Treasury Seal. On
a counterfeit, the serial numbers
may differ in color or shade of
ink from the Treasury seal. The
numbers may not be uniformly
spaced or aligned.
Paper Genuine currency paper
has tiny red and blue fibers
embedded throughout. Often
counterfeiters try to simulate
these fibers by printing tiny red
and blue lines on their paper.
Close inspection reveals,
however, that on the
counterfeit note the lines are
printed on the surface, not
embedded in the paper. It is
illegal to reproduce the
distinctive paper used in the
manufacturing of United States
currency.
What About Counterfeit
Coins?
Genuine coins are struck
(stamped out) by special
machinery. Most counterfeit
coins are made by pouring liquid
metal into molds or dies. This
procedure often leaves die
marks, such as cracks or pimples
of metal on the counterfeit coin.
Today counterfeit coins are
made primarily to simulate rare
coins which are of value to
collectors. Sometimes this is
done by altering genuine coins
to increase their numismatic
value. The most common
changes are the removal,
addition, or alteration of the
coin's date or mint marks.
If you suspect you are in
possession of a counterfeit or
altered coin, compare it with a
genuine one of the same value.
If it is above five cents in value,
it should have corrugated outer
edges, referred to as “reeding.”
Reeding on genuine coins is
even and distinct. The
counterfeit coin's reeding may
be uneven, crooked, or missing
altogether.