currency counterfeiting documents 3. history of counterfeiting one of the oldest crimes known during...

Currency CounterfeitingCurrency Counterfeiting

Documents 3Documents 3

History of CounterfeitingHistory 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 CounterfeitingHistory 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 CounterfeitingHistory of Counterfeiting

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

US Paper CurrencyUS 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 ProcessProduction 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 CurrencyUS 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 CurrencyUS 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 CurrencyUS Paper Currency

A genuine US silver certificate

US Paper CurrencyUS Paper Currency

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

US Currency Design FeaturesUS 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 FeaturesUS Currency Design Features• Motto

• Printed from 1963

• Federal Reserve Seal• “Universal seal” since

1996• Actual bank denoted

prior

US Currency Design FeaturesUS 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 FeaturesUS 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 FeaturesUS Currency Design Features• Watermarks

• All new currency except $1 have watermarks of the portraits on the bill built into the paper

US Currency Design FeaturesUS 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 DetectionCounterfeit 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 DetectionCounterfeit 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 DetectionCounterfeit Detection

Take a quick look…

Counterfeit DetectionCounterfeit Detection

How much was the bill worth on

the previous slide?

Counterfeit DetectionCounterfeit 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 DetectionCounterfeit Detection

• Toner technology and inkjets• 3 Main types of toner/copiers

• Black/white• Monochromatic• Full color

Counterfeit DetectionCounterfeit Detection• Counterfeit

detectors• Usually work by

infra-red and/or ultraviolet sensors

• Detect unique features found on legal bills but difficult to fake

Counterfeiting PenaltiesCounterfeiting Penalties• For production or

possession with “fraudulent intent” of any amount over 5 cents• Fines and/or

imprisonment up to 15 years