Currency Counterfeiting Documents 3

History of Counterfeiting One of the oldest crimes known During US Civil War, 1/3 to 1/2 of all US currency was counterfeit Over 1600 state banks printed money US adopted national currency in 1862 US Secret Service established in July 1865 to stop counterfeiting of new currency Secret Service is part of the Treasury Dept. Exclusive jurisdiction over all currency investigations

History of Counterfeiting Counterfeiting prevention still “top job” of Secret Service Modern problem is huge due to sophisticated reproduction techniques US dollar remains the most counterfeited currency in the world

History of Counterfeiting Modern counterfeiting has moved from “traditional” to computerized Hi-res office printers and copiers Custom paper

US Paper Currency Not truly “paper” No wood pulp is contained in it 25% cotton, 75% linen Technically “cloth” rather than “paper” It is illegal in the US to manufacture any other goods from the same combinations of materials

Production Process Known as Intaglio Printing Gives US currency its distinctive look Master engraver carves the pattern into steel plates Ink lies only in the grooves of the plates but are then subjected to 7,500-15,000 psi pressure ID number and Seal are added later

US Paper Currency Normal life expectancy of $1 bill is approx. 18 months Higher denominations usually last longer Approx. 4 billion in circulation Will only be replaced if clearly more than ½ of the original bill remains

US Paper Currency 3 types Federal Reserve NoteFederal Reserve Note 99% of all currency Only variety being printed today ID by green Treasury seal and serial number United States NoteUnited States Note Last issued in 1966 ID by red Treasury seal and serial number Silver CertificateSilver Certificate Last issued in 1963 ID by blue Treasury seal and serial number

US Paper Currency A genuine US silver certificate

US Paper Currency Denominations of $500, $1,000, $5,000, $10,000 no longer printed and being phased out

US Currency Design Features Variations are actually common from year to year Different Secretary of Treasury or Treasurer of United States Occasionally portrait differences Treasury Seal

US Currency Design Features Motto Printed from 1963 Federal Reserve Seal “Universal seal” since 1996 Actual bank denoted prior

US Currency Design Features Star notes Replacing mutilated currency with same serial number is costly A star is added to show a bill out of sequence

US Currency Design Features Microprinting Printing placed at various locations on currency too small to be reproduced by modern printers Usually located in different locations for different denominations

US Currency Design Features Watermarks All new currency except $1 have watermarks of the portraits on the bill built into the paper

US Currency Design Features Security Strip A thin gold-leafed strip built into the bill Will fluoresce under UV light Located in different places for different denominations

Counterfeit Detection Portraits Should appear “lifelike” and very detailed Federal Reserve and Treasury Seals Sawtooth design is clear, distinct and perfectly even Border Scrollwork is clear and unbroken

Counterfeit Detection Serial numbers Distinct style and evenly spaced Always the same ink color as the Treasury seal Paper Tiny blue and red fibers are found throughout

Counterfeit Detection Take a quick look…

Counterfeit Detection How much was the bill worth on the previous slide?

Counterfeit Detection This type of counterfeit is known as a “raised note”. Higher values of genuine currency are glued to the corners of a lower denomination bill. Look carefully and you will see the glued corner. Low tech but effective…

Counterfeit Detection Toner technology and inkjets 3 Main types of toner/copiers Black/white Monochromatic Full color

Counterfeit Detection Counterfeit detectors Usually work by infra-red and/or ultraviolet sensors Detect unique features found on legal bills but difficult to fake

Counterfeiting Penalties For production or possession with “fraudulent intent” of any amount over 5 cents Fines and/or imprisonment up to 15 years