mo money mo problems q3: document analysis and counterfeiting

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Mo Money Mo Mo Money Mo Problems Problems Q3: Document Q3: Document Analysis and Analysis and Counterfeiting Counterfeiting

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Page 1: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Mo Money Mo Mo Money Mo ProblemsProblems

Q3: Document Q3: Document Analysis and Analysis and CounterfeitingCounterfeiting

Page 2: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Document AltercationsDocument Altercations Counterfeiting: Counterfeiting: Production of imitation of currency, Production of imitation of currency,

works of art, documents, and name-brand look works of art, documents, and name-brand look alikes for the purpose of deceptionalikes for the purpose of deception What item do you think is the most What item do you think is the most

counterfeited?counterfeited? ForgeryForgery: an item prepared with the intent to deceive : an item prepared with the intent to deceive

or defraudor defraud What is the most common forgery?What is the most common forgery?

Fraudulence: Fraudulence: When a financial gain accompanies a When a financial gain accompanies a forgeryforgery

Page 3: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Types of Forgery’sTypes of Forgery’s

1.1. Blind:Blind: one made without a model of the one made without a model of the signature or writing being usedsignature or writing being used

2.2. Simulated:Simulated: one made by copying one made by copying

3.3. Traced:Traced: one made by copying lines thru one made by copying lines thru a transparent surfacea transparent surface

Page 4: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Types of Forgery’sTypes of Forgery’s

1.1. Which is the easiest to detect?Which is the easiest to detect? BlindBlind

2.2. Which is the hardest to detect?Which is the hardest to detect? Simulated Simulated Often the forger becomes very good. Often the forger becomes very good.

They can avoid pen lifts and hesitations They can avoid pen lifts and hesitations

3.3. Why isn’t traced hardest to detect?Why isn’t traced hardest to detect? Microscopic examination will show indentationsMicroscopic examination will show indentations Tops and bottoms analysisTops and bottoms analysis

Page 5: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Counterfeiting terms Counterfeiting terms cont…cont…

Exemplar: Exemplar: A standard document of A standard document of known origin and authorship used in known origin and authorship used in handwriting analysishandwriting analysis

Questioned Document: Questioned Document: any signature, any signature, handwriting, typewriting, or other written handwriting, typewriting, or other written mark whose source or authenticity is in mark whose source or authenticity is in dispute or uncertaindispute or uncertain

Page 6: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting
Page 7: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

ObliterationsObliterations

Definition: removal of writing by physical Definition: removal of writing by physical or chemical meansor chemical means Erasing with an eraserErasing with an eraser Scraping off inkScraping off ink UV lightingUV lighting

Papers (checks for example) are coated with UV Papers (checks for example) are coated with UV absorbers. When the surface is removed absorbers. When the surface is removed (scratching) the absorbers are affected and the (scratching) the absorbers are affected and the check will shinecheck will shine

Page 8: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Frank Abagnale Jr.Frank Abagnale Jr. Born April 27, 1948 (New York, Born April 27, 1948 (New York,

NY)NY) Was am imposter for 5 years in Was am imposter for 5 years in

the 1960’s.the 1960’s. Currently runs Abagnale and Currently runs Abagnale and

Associates (a financial fraud Associates (a financial fraud consultancy company)consultancy company)

So what did he do?So what did he do?

Page 9: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

At the age of 16 his parents At the age of 16 his parents divorced, an experience that was divorced, an experience that was so traumatic for him that he ran so traumatic for him that he ran away.away. This would be the last time he ever This would be the last time he ever

saw his fathersaw his father Lived alone in N.Y.C. His mature Lived alone in N.Y.C. His mature

appearance made people think he appearance made people think he was much older than he actually was much older than he actually was. was. Altered his license to make it Altered his license to make it

appear he was ten years older appear he was ten years older than he actually was so he than he actually was so he could get a jobcould get a job

Page 10: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

So what did he do at your age?So what did he do at your age?

First ConFirst Con Wrote himself checks on his own overdrawn Wrote himself checks on his own overdrawn

accountaccount Printing out his own checks, deposited them, Printing out his own checks, deposited them,

and persuaded banks to advance him the and persuaded banks to advance him the moneymoney

Put his account number on deposit slips of Put his account number on deposit slips of other customers ($40,000 before other customers ($40,000 before discovered)discovered)

Page 11: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Free FlightsFree Flights For 2 years he masqueraded as a For 2 years he masqueraded as a

Pan Am pilot (Frank Williams) to get Pan Am pilot (Frank Williams) to get free rides around the world by dead free rides around the world by dead heading.heading.

Abagnale, M.D.Abagnale, M.D. Impersonated a pediatrician in Impersonated a pediatrician in

Georgia and became the resident Georgia and became the resident supervisorsupervisor

Almost fired after letting a baby dieAlmost fired after letting a baby die Faked his way thru most of his duties Faked his way thru most of his duties

by letting interns handle themby letting interns handle them

Page 12: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

As an AttorneyAs an Attorney Forges a Harvard University Law Forges a Harvard University Law

transcript, passed the Louisiana transcript, passed the Louisiana bar exam, and got a job at the bar exam, and got a job at the office of the state attorney generaloffice of the state attorney general

Becoming a ProfessorBecoming a Professor Forged a Columbia University Forged a Columbia University

degree and taught Sociology at degree and taught Sociology at BYU for a semester.BYU for a semester.

At the end of the term he moved to At the end of the term he moved to California and got engaged to a California and got engaged to a stewardessstewardess

Page 13: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

““Resume”Resume” Worked under 8 identities (used many Worked under 8 identities (used many

more to cash checks)more to cash checks) Passed bad checks worth over $2.5 million Passed bad checks worth over $2.5 million

dollars in 26 countriesdollars in 26 countries Partied like a rock starPartied like a rock star

Page 14: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Arrest and ImprisonmentArrest and Imprisonment

Arrested in France in 1969 Arrested in France in 1969 Air France attendant recognized his face from a Air France attendant recognized his face from a

wanted posterwanted poster All 26 countries in which he had committed All 26 countries in which he had committed

crimes wanted him to be extraditedcrimes wanted him to be extradited Served 6 months in France where he nearly Served 6 months in France where he nearly

dieddied Extradited to Sweden where he served 1 yearExtradited to Sweden where he served 1 year Extradited to U.S. where he was sentenced for Extradited to U.S. where he was sentenced for

12 more years12 more years

Page 15: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Legitimate JobsLegitimate Jobs In 1974 the U.S. released him on the In 1974 the U.S. released him on the

condition that he would help federal condition that he would help federal authorities against fraud and scams – authorities against fraud and scams – (without pay)(without pay)

Found this work unsatisfyingFound this work unsatisfying Approached a bank with an offer. He explained Approached a bank with an offer. He explained

to the bank what he had done, and offered to to the bank what he had done, and offered to speak to bank’s staff and show various tricks speak to bank’s staff and show various tricks that are used to defraud banksthat are used to defraud banks

Word spread and he began his life as a Word spread and he began his life as a consultantconsultant

Page 16: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Counterfeit MoneyCounterfeit Money

Page 17: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

One of the Oldest CrimesOne of the Oldest Crimes Serious problem in the 19Serious problem in the 19thth century. century. Why?Why?

Banks used their own currencyBanks used their own currency Original colonies were represented by Original colonies were represented by

different countriesdifferent countries

Page 18: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

TimelineTimeline 1792 1792 “Mint Act” was passed after “Mint Act” was passed after

Revolutionary WarRevolutionary War 11stst country to adopt the decimal system for country to adopt the decimal system for

currencycurrency Philadelphia Philadelphia location where 1 location where 1stst money was made money was made

1793-1861 1793-1861 Over 7,000 varieties of Over 7,000 varieties of money were put into circulationmoney were put into circulation Banks made their own moneyBanks made their own money

Page 19: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

First MoneyFirst Money

11stst paper money was printed in 1861 paper money was printed in 1861 Made up for shortage of coins during Civil Made up for shortage of coins during Civil

WarWar People were hoarding them during the warPeople were hoarding them during the war

Value of items were fluctuating. Coins, made of Value of items were fluctuating. Coins, made of gold and silver, never changedgold and silver, never changed

Safe betSafe bet

Page 20: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Timeline Cont…Timeline Cont…

18631863 United States adopt a national United States adopt a national currencycurrency At this time about 1/3 of the money that was At this time about 1/3 of the money that was

circulating was counterfeit circulating was counterfeit

Page 21: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

United States Secret United States Secret ServiceService

18651865 U.S.S.S. was established U.S.S.S. was established First responsibility: To suppress currencyFirst responsibility: To suppress currency

Today the U.S.S.S. confiscates about $80 million Today the U.S.S.S. confiscates about $80 million in phony money each yearin phony money each year

Page 22: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Lifespan (Present) Lifespan (Present)

Bills get worn out from everyday use and are taken out Bills get worn out from everyday use and are taken out of circulation and replaced by the banksof circulation and replaced by the banks $1 bills $1 bills 1 year or less 1 year or less

48% of all paper money printed48% of all paper money printed About 16.5 million dollar bills made each dayAbout 16.5 million dollar bills made each day

$5 bills $5 bills 1.5 years 1.5 years $10 bills $10 bills 1.5 years 1.5 years $20 bills $20 bills 2 years 2 years $50 bills $50 bills 5 years 5 years $100 bills $100 bills 9 years 9 years

Regardless of denomination each billRegardless of denomination each billcost about 4.2 cents to makecost about 4.2 cents to make

Page 23: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

BEPBEP

United States Bureau of Engraving and PrintingUnited States Bureau of Engraving and Printing Gov’t agency in the U.S. Dept of Treasury Gov’t agency in the U.S. Dept of Treasury Facilities inFacilities in

Washington D.C.Washington D.C. Fort Worth, TexasFort Worth, Texas

Primarily print Federal Reserve NotesPrimarily print Federal Reserve Notes Mutilated CurrencyMutilated Currency

Over 30,000 claims per year = $30 million in refundsOver 30,000 claims per year = $30 million in refunds

Page 24: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Federal Reserve NotesFederal Reserve Notes

Our current money today Our current money today only one that is still printedonly one that is still printed Represents 99% of all currency circulatingRepresents 99% of all currency circulating 1913: Federal Reserve Act1913: Federal Reserve Act

Fiat CurrencyFiat Currency Def: money that has a value primarily because a Def: money that has a value primarily because a

government demands it in payments of taxesgovernment demands it in payments of taxes

Fiat system = system of trustFiat system = system of trust

Page 25: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

United States NotesUnited States Notes

Page 26: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

United States Notes United States Notes cont…cont…

In order to stimulate the economy during In order to stimulate the economy during The Civil War the U.S. Dept of Treasury The Civil War the U.S. Dept of Treasury put $300 million in circulationput $300 million in circulation Last placed into circulation in 1971Last placed into circulation in 1971 This recently happened (about 6 years ago)This recently happened (about 6 years ago)

Page 27: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

$500 Bill$500 Bill

President President William William McKinleyMcKinley

Series: Series: 1928 & 1928 & 19321932

Page 28: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

$1,000 Bill$1,000 Bill

President President Grover Grover ClevelandCleveland

19281928

Page 29: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

$5,000 Bill$5,000 Bill

President James MadisonPresident James Madison 19341934

Page 30: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

$10,000 Bill$10,000 Bill

Treasurer Treasurer and Chief and Chief Justice Justice Salmon Salmon ChaseChase

Page 31: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

$100,000 Bill$100,000 Bill

President Woodrow WilsonPresident Woodrow Wilson

Page 32: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

SecuritySecurity

Very Specific DimensionsVery Specific Dimensions 2.61” wide2.61” wide 6.14” long6.14” long 0.0043” thick0.0043” thick

CompositionComposition Constant changes in ink and designConstant changes in ink and design Embedded with red and blue synthetic fibers evenly Embedded with red and blue synthetic fibers evenly

distributed throughout paperdistributed throughout paper Cotton and linen blend with silkCotton and linen blend with silk

WatermarksWatermarks Design/Hologram incorporated into moneyDesign/Hologram incorporated into money

Page 33: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Federal Federal Reserve Seal Reserve Seal

Bears the name of the issuing Federal Reserve BankBears the name of the issuing Federal Reserve Bank Letter indicates the district in which the bank is locatedLetter indicates the district in which the bank is located

A = Boston (1)A = Boston (1) B = New York City (2)B = New York City (2) C = Philadelphia (3)C = Philadelphia (3) D = Cleveland (4)D = Cleveland (4) E = Richmond (5)E = Richmond (5) F = Atlanta (6)F = Atlanta (6) G = Chicago (7)G = Chicago (7) H = St. Louis (8)H = St. Louis (8) I = Minneapolis (9)I = Minneapolis (9) J = Kansas City, MO (10)J = Kansas City, MO (10) K = Dallas (11)K = Dallas (11) L = San Francisco (12)L = San Francisco (12)

Page 34: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Serial Numbers and Star Serial Numbers and Star NotesNotes

Each note of the same denomination and Each note of the same denomination and series (year) bears a specific serial series (year) bears a specific serial numbernumber

When a note is mutilated while When a note is mutilated while manufactured it must be replaced in the manufactured it must be replaced in the series to ensure a proper countseries to ensure a proper count To print another note would be costly and To print another note would be costly and

time consumingtime consuming Note is given a starNote is given a star

Page 35: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Plate Position Letter & Plate Position Letter & NumberNumber

Designates the position of the Designates the position of the notenote

32 are printed on each face 32 are printed on each face plateplate

Page 36: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Plate Serial NumberPlate Serial Number

Number and letter indicate which plate Number and letter indicate which plate the money was printed fromthe money was printed from

Page 37: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Series DateSeries Date

Signifies the year the design of the Signifies the year the design of the particular note originated or year of a particular note originated or year of a major revisionmajor revision

If a letter follows it that indicates a minor If a letter follows it that indicates a minor revision was maderevision was made

Page 38: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Color copier TechnologyColor copier Technology

Due to increases in color copier Due to increases in color copier technology two security features were technology two security features were added to the Series 1990, 1993, and added to the Series 1990, 1993, and 19951995

Page 39: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Security ThreadsSecurity Threads

Thin ribbon which is threaded through Thin ribbon which is threaded through the notes paper which contains text or the notes paper which contains text or numbersnumbers Made of polyesterMade of polyester

11stst appears in 1990 on $100, $50, and appears in 1990 on $100, $50, and $20 bills$20 bills

By 1993 appears on all denominations By 1993 appears on all denominations except $1 billsexcept $1 bills

Glow when exposed to ultra-violet lightGlow when exposed to ultra-violet light

Page 40: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

MicroprintingMicroprinting

Appears same time as Appears same time as the Security Threadsthe Security Threads

Microscopic Printing that Microscopic Printing that appears to the naked eye appears to the naked eye as a solid line and could as a solid line and could only be read using only be read using magnificationmagnification

Office machine copiers Office machine copiers and printers cannot and printers cannot accurately reproduce itaccurately reproduce it

Page 41: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Security Series (1996 & Security Series (1996 & 2004)2004)

New elements incorporated to make U.S. New elements incorporated to make U.S. currency easier to recognize as genuine currency easier to recognize as genuine and more secure against advanced and more secure against advanced reproduction technologyreproduction technology

Same historical figures, national symbols, Same historical figures, national symbols, size, color, texture remain samesize, color, texture remain same

Page 42: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

The $1 BillThe $1 Bill

Treasury Dept. SealTreasury Dept. Seal Balancing Scales Balancing Scales

justice justice 13 stars 13 stars 13 13

original coloniesoriginal colonies Key Key authority authority

and trustand trust

Page 43: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

The OwlThe Owl

Page 44: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

The Great SealThe Great Seal Tip of pyramid (all Tip of pyramid (all

seeing eye) seeing eye) United United States is far from States is far from finishedfinished

Shadow cast from Shadow cast from pyramid pyramid the the undiscovered land to undiscovered land to the westthe west

Rising sun Rising sun a new a new nation has begunnation has begun

Page 45: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

The Great Seal cont…The Great Seal cont… Annuit CoeptisAnnuit Coeptis

Annuere Annuere to nod, approve to nod, approve Coepere Coepere to begin, undertake to begin, undertake ““He/It favors the things that He/It favors the things that

have begun”have begun”

Novus Ordo SeclorumNovus Ordo Seclorum Seclorum Seclorum generation, age generation, age ““New Order of Ages”New Order of Ages”

Roman Num. MDCCLXXVIRoman Num. MDCCLXXVI 1776 1776 Declaration of Indep. Declaration of Indep.

Page 46: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

The EyeThe Eye Very popular amongst Very popular amongst

conspiracy theorist conspiracy theorist Illuminati secret societyIlluminati secret society Elite set of enlightened Elite set of enlightened

individuals behind many individuals behind many events leading to a New events leading to a New World OrderWorld Order

Page 47: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

The US Dollar and the The US Dollar and the Freemasons?Freemasons? The Eagle’s left wing has 32 The Eagle’s left wing has 32

feathers (number of degrees feathers (number of degrees in Scottish Rite in Scottish Rite Freemasonry) Freemasonry)

The Eagle’s right wing has The Eagle’s right wing has 33 feathers (there exists a 33 feathers (there exists a 3333rdrd degree mason for degree mason for outstanding service)outstanding service)

9 Tail Feathers (number of 9 Tail Feathers (number of degrees in York Rite degrees in York Rite Freemasonry) Freemasonry)

13 Stars form a five pointed 13 Stars form a five pointed star (A Masonic symbol)star (A Masonic symbol)

Page 48: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

The Heraldic Bald EagleThe Heraldic Bald Eagle

Front of eagle is an unsupported shieldFront of eagle is an unsupported shield Symbolizes the fledging country’s ability to Symbolizes the fledging country’s ability to

stand on its ownstand on its own

Olive branch and arrowsOlive branch and arrows Symbolizes desire for peace but readiness Symbolizes desire for peace but readiness

to fight if necessaryto fight if necessary

E Pluribus UnimE Pluribus Unim From many, oneFrom many, one

Page 49: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

The Number 13The Number 13

The number 13, symbolizing the 13 original colonies, is The number 13, symbolizing the 13 original colonies, is seen numerous timesseen numerous times 13 total letters/digits in 1776 (4) and MCDDLXXVI (9)13 total letters/digits in 1776 (4) and MCDDLXXVI (9) 13 stars above the eagle13 stars above the eagle 13 steps in the pyramid13 steps in the pyramid 13 letters in Annuit Coeptis13 letters in Annuit Coeptis 13 vertical bars on the shield13 vertical bars on the shield 13 horizontal stripes on the top of the shield13 horizontal stripes on the top of the shield 13 leaves on the olive branch13 leaves on the olive branch 13 berries on the olive branch13 berries on the olive branch 13 arrows13 arrows 13 letters in E Pluribus Unum 13 letters in E Pluribus Unum

Page 50: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

United States Secret United States Secret ServiceService

Headquarters Headquarters Washington D.C. Washington D.C. Over 150 offices country wideOver 150 offices country wide

22ndnd Responsibility Responsibility ““Detecting persons perpetrating fraud Detecting persons perpetrating fraud

against our government”against our government” Perpetrating = perform or commitPerpetrating = perform or commit

In response toIn response to KKKKKK SmugglersSmugglers Mail RobbersMail Robbers

Page 51: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

U.S.S.S. cont…U.S.S.S. cont… 33rdrd Responsibility Responsibility

Protect against land fraudProtect against land fraud Only 35 states at the timeOnly 35 states at the time Had to protect the United States against rebels Had to protect the United States against rebels

who were looking to flee and claim land that who were looking to flee and claim land that wasn’t theirswasn’t theirs

Protect against RevolutionProtect against Revolution

Page 52: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

U.S.S.S. cont…U.S.S.S. cont… 44thth Responsibility (1894) Responsibility (1894)

Protection of PresidentProtection of President At first protection was only part timeAt first protection was only part time

Not until 1902 did the U.S.S.S. provide fulltime Not until 1902 did the U.S.S.S. provide fulltime protection of the U.S. Presidentsprotection of the U.S. Presidents

What happened in 1902 to change this?What happened in 1902 to change this? President McKinley is the 3President McKinley is the 3rdrd President to be President to be

assassinatedassassinated

Page 53: Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

Who does the U.S.S.S. protect Who does the U.S.S.S. protect today?today?

1.1. Vice President’sVice President’s2.2. Presidential and Vice Presidential NomineesPresidential and Vice Presidential Nominees3.3. Families of President and VP during Families of President and VP during

PresidencyPresidency4.4. Widows until death or remarriageWidows until death or remarriage5.5. Children until age of 16 (post Presidency)Children until age of 16 (post Presidency)6.6. Foreign OfficialsForeign Officials7.7. Presidents elected pre Jan 1, 1997 Presidents elected pre Jan 1, 1997

LifetimeLifetime8.8. Presidents elected after Jan 1, 1997 Presidents elected after Jan 1, 1997 10 10

years following Presidencyyears following Presidency