Counterfeit currency has become a cat-and-mouse game between governments and criminals. While authorities continually enhance security measures to safeguard their nation’s currency, counterfeiters leverage advancements in technology to create increasingly sophisticated fakes. To combat this, the U.S. Bureau of Engraving & Printing (BEP) invests in improving the security features of the U.S. Dollar and educating businesses and consumers on identifying fake bills.
Understanding Counterfeit Bills
Currently, there are seven denominations of U.S. currency actively in circulation: $1, $2, $5, $10, $20, $50, and $100. While other denominations exist and remain legal tender, they are rarely encountered as they are largely confined to collections.
Unlike inactive notes, active denominations undergo routine destruction once they are too damaged to circulate. Additionally, these notes are periodically redesigned—not for aesthetic appeal but to enhance security features and stay ahead of counterfeiters.
The redesign process is intricate and lengthy, often spanning over a decade of research, development, and testing. For instance, the last redesign of the $100 bill, launched on October 8, 2013, took more than ten years to finalize. Upcoming redesigns for other denominations are scheduled as follows:
- $10 note: 2026
- $50 note: 2028
- $20 note: 2030
- $5 note: 2032
- $100 note: 2034
This staggered schedule is part of the BEP’s strategy to mitigate counterfeiting risks and ensure a smooth rollout of new security features.
Counterfeit Prevention: An Ongoing Battle
Despite these efforts, no currency is entirely counterfeit-proof. The Advanced Counterfeit Deterrence (ACD) Steering Committee—a coalition of the BEP, the Federal Reserve, the U.S. Treasury, and the Secret Service—works tirelessly to create designs that are challenging to replicate.
Education and testing play a crucial role in this process. Years of optimization and integration testing ensure new designs meet rigorous quality standards. This includes developing specialized raw materials and production equipment that make counterfeiting more difficult.
Even with these safeguards, counterfeit currency remains a significant issue. The U.S. Department of Treasury estimates that $70 million in fake bills are currently in circulation, though some experts believe the number could be closer to $200 million due to the dollar’s widespread global use as a reserve currency.
How to Spot a Counterfeit Bill
To protect themselves, businesses and consumers must stay vigilant. Here are key steps to detect counterfeit U.S. dollars:
- Color-Shifting Ink: Tilt the bill to see if the ink in certain areas changes color.
- Raised Printing: Feel for the texture of the printing, which should be slightly raised.
- Blurry Borders or Text: Counterfeit bills often have smudged or blurry printing.
- Red and Blue Threads: Genuine bills have embedded red and blue fibers in the paper.
- Watermark: Hold the bill up to light to see the watermark, which should match the portrait on the note.
- Security Thread: Look for the embedded security thread, visible when held up to light.
- Security Ribbon on New $100 Bills: Examine the 3D blue security ribbon, which shifts and moves as you tilt the bill.
The Path Forward
While counterfeiters will likely continue their efforts to deceive, the BEP and other agencies remain committed to safeguarding the integrity of U.S. currency. Through cutting-edge security innovations, public education, and stringent testing, the U.S. government strives to maintain the dollar’s status as a trusted global currency.
By staying informed and vigilant, businesses and consumers alike can play their part in preventing counterfeit bills from disrupting the economy.