How to Spot Counterfeit Bills at Your Store

How to Spot Counterfeit Bills at Your Store

Accepting a counterfeit bill means losing money twice. First, you lose the value of the fake bill itself, and then you lose the product or service you just gave away for free.  And there’s no getting that money back. The government won’t reimburse you, and most insurance policies don’t cover it either. The good news? Spotting fakes is easier than you think once you know what to look for.

Counterfeit Cash Is Still a Real Problem

You might assume counterfeiting is a relic of the past, but it’s far from over. According to estimates from the Federal Reserve, somewhere between $70 million and $200 million in counterfeit bills are circulating at any given time. The U.S. Secret Service seized nearly $22 million in fake currency in a single year, triggering almost 200 arrests.

What worsens it for store owners is that the $20 bill is the most commonly counterfeited denomination, followed by the $100 bill. Those are the exact bills your cashiers are handling dozens of times a day. Counterfeiters aren’t just targeting banks. They are walking into retail stores, restaurants, gas stations, and food trucks, looking for someone distracted enough to accept a fake.

The rise of high-quality home printers and even “prop money” originally made for film sets has made the problem more accessible than ever. Some of these fakes look convincing enough to fool a distracted cashier during a rush. For store owners already juggling staffing, pricing, and day-to-day retail operations, adding one more thing to watch for can feel like a lot. But the basics are straightforward. These counterfeit bills can be difficult to distinguish, especially under pressure.

The Feel Test—Your First Line of Defense

Before you even look at a bill, you can often feel whether something is off. Genuine U.S. currency is printed on a blend of 75% cotton and 25% linen, which gives it a distinctive texture that’s completely different from regular paper. If a bill feels too smooth, flimsy, or like it was printed on regular paper, that’s an immediate red flag.

Many businesses that handle large amounts of cash rely on counterfeit detection machines to eliminate the guesswork. Leading counterfeit money detectors use UV, magnetic, and infrared technology to flag suspicious bills in seconds. These devices can do what even the most experienced cashier cannot do with the naked eye.

Here’s what to check by touch alone:

• Raised printing: Run your fingernail across the portrait. You should feel ridges and bumps, especially along the shoulders. Counterfeits printed on standard paper can’t replicate this texture.
• Paper texture: Genuine currency feels like fabric, not paper. If it feels thin or waxy, set it aside.
• Red and blue fibers: Real bills have tiny colored fibers woven into the paper. On fakes, these are printed on the surface and won’t feel embedded.

Hold It Up to the Light

Some of the most reliable security features in U.S. currency are only visible when you hold the bill up to a light source. According to the U.S. Currency Education Program, every denomination from the $5 bill and higher includes a security thread, a thin plastic strip embedded vertically in the paper. This thread displays text that matches the denomination. For example, on a $20 bill, it reads “USA TWENTY” with a small flag.

Each denomination’s security thread also glows a specific color under ultraviolet light:

Denomination	Thread Color Under UV Light
$5	Blue
$10	Orange
$20	Green
$50	Yellow
$100	Pink/Red

If the thread is missing, printed on the surface instead of embedded, or glows the wrong color, you’re likely looking at a counterfeit.

Watermarks work the same way. When you hold the bill up to the light, you should see a faint image that matches the portrait on the front. If the watermark doesn’t match, such as when a $100 bill shows the watermark of a $5, it is a strong sign that a counterfeiter bleached a lower denomination bill and reprinted it.

Tilt the Bill and Check the Details

Color-shifting ink is one of the easiest security features to check and one of the hardest for counterfeiters to fake. On bills $10 and higher (printed after 1996), the number in the lower-right corner changes color when you tilt the note back and forth. Newer series notes shift from copper to green, while older versions shift from green to black.

The $100 bill takes this feature a step further with a blue 3-D security ribbon woven directly into the paper. When you tilt the note, tiny images of bells and ‘100s’ shift and move side to side. This ribbon is woven into the bill, not printed on top of it. If you can peel it off or it doesn’t move, it’s fake.

Beyond the tilt test, look closely at these fine details:

• Border lines: Genuine bills have crisp, unbroken scrollwork. Fakes often appear blurry or smudged.
• Microprinting: Tiny text hidden in various locations that’s readable under magnification but nearly impossible to replicate with a standard printer.
• Serial numbers: Both numbers on the front should match exactly, be evenly spaced, and be printed in the same ink color as the Treasury Seal.

What to Do When You Spot a Fake

Finding a counterfeit mid-transaction can feel stressful, but how you handle it matters. Do not return the bill to the customer. Set it aside and try to delay the person if possible without putting yourself in danger. Note their physical description, any companions, and vehicle details.

Place the bill in an envelope and handle it as little as possible to preserve any fingerprints. Then contact your local police department or your nearest U.S. Secret Service field office. This ensures the evidence remains intact for investigation.

Whatever you do, don’t try to use the bill yourself. Knowingly passing counterfeit currency is a federal crime that can carry up to 20 years in prison.

Train Your Team as If It Matters

The best detection tools in the world won’t help if your employees don’t know what to look for. Make counterfeit detection part of your broader store security training and run refresher sessions at least a couple of times a year. The Federal Reserve’s U.S. Currency Education Program offers free training materials, interactive apps, and even a “Cash Assist” smartphone tool that walks users through security features in real time.

Post a quick-reference guide near every register showing the key features to check. And create a clear protocol for what employees should do when they suspect a bill is fake – who to alert, where to store it, and when to call authorities.

FAQ

What is the most commonly counterfeited bill?

The $20 bill is the most frequently counterfeited denomination in the United States, followed by the $100. Counterfeiters favor the $20 as it is widely used in everyday transactions and is less scrutinized than larger bills.

Do counterfeit detection pens really work?

They’re better than nothing, but not foolproof. Detection pens test whether a bill is printed on wood-based paper. However, counterfeiters who bleach real $1 or $5 bills and reprint them as higher denominations can bypass the pen entirely since the underlying paper is still genuine.

Can I get reimbursed for accepting a counterfeit bill?

No. Once you accept a counterfeit bill, that money is gone. The federal government does not reimburse businesses or individuals for counterfeit currency. Some business insurance policies may cover the loss, so it’s worth checking your coverage.

Should I confront someone passing a counterfeit bill?

Never confront or attempt to physically detain someone. They may not even know the bill is fake. Stay calm, set the bill aside, note identifying details, and contact law enforcement.

Where can I report counterfeit money?

Contact your local police department or your nearest U.S. Secret Service field office. You can also submit reports through the Secret Service’s USDollars website. Banks have their procedures for forwarding suspected counterfeits to authorities.

Key Takeaways

• The U.S. Treasury estimates $70 million to $200 million in counterfeit bills are in circulation at any given time
• Always use the feel, tilt, and light-check method to verify bills $5 and above
• Counterfeit detection machines using UV, magnetic, and infrared technology provide the most reliable protection
• Never return a suspected counterfeit to the customer, and contact law enforcement immediately
• Free training resources are available through the U.S. Currency Education Program at uscurrency.gov