How to Spot Counterfeit Money
By Farmers State Bank • Updated: August 6, 2026 • 5 min read
In an era where technology makes counterfeiting easier, an estimated $70 to $200 million in fake bills circulate at any given time, and about 60% of it stays within the United States.
The good news: you can check for a fake bill at home in under a minute, using nothing but your eyes, your fingers, and a light source.
Table of Contents Report Suspected Fraud
Key Takeaways
1
Genuine bills $5 and up have a watermark that matches the portrait when held to light.
2
Real currency is printed on cotton-linen paper with raised ink, unlike smooth counterfeit paper.
3
Security threads glow different colors under UV light depending on the bill's denomination.
4
The $20 and $100 bills are the most commonly counterfeited denominations in the US.
5
Report a suspected counterfeit bill to authorities rather than confronting the person who gave it to you.
Table of Contents
Feel the Paper and Check for Textures
Check for Identifying Markings
What Is Counterfeit Money?
Counterfeit money is currency made to imitate genuine U.S. bills without legal authority, with the intent to pass it off as real. It has no actual value, and knowingly producing, using, or passing it is a federal crime.
Advances in printing and scanning technology have made counterfeiting easier than it once was, which is part of why the $20 and $100 bills, the two most-passed denominations, remain the most commonly counterfeited.
Check the Watermark
All U.S. currency from the $5 bill and up has a visible watermark when the bill is held up to the light.
Except for the $5 bill, whose watermark is simply a 5, all watermarks should match the portrait on the bill. If there's no watermark, or it doesn't match the portrait, the bill may be fake.
Feel the Paper and Check for Textures
U.S. currency is uniquely printed on a blend of one-fourth linen and three-fourths cotton, unlike counterfeit bills, which often use standard paper.
Authentic bills also feature red and blue security fibers woven into the fabric, not merely sitting on the surface.
Genuine U.S. bills also have some raised printing, most noticeable on the portrait and lettering. A completely smooth bill is likely counterfeit, so run your finger over these areas to check.
Check for Identifying Markings
- 3D Security Ribbon: found on the $100 bill, containing bells that appear to move within the weave as you tilt it.
- Security Threads: visible in all bills $5 and up when held to light, positioned to the left or right of the portrait. Colors and text vary by denomination.
Match the Security Thread
Under light, check that the bill has a security thread listing the correct denomination. A UV light also lets you verify the thread's color, since each denomination glows a different shade.
Denomination Quick Reference
Each denomination has its own combination of watermark, security thread color, and printed symbol. Use this as a quick check against any bill.
$5
Thread: Blue
Symbol: Great Seal
$10
Thread: Orange
Symbol: Liberty's torch
$20
Thread: Green
Symbol: Eagle
$50
Thread: Yellow
Symbol: Stars
$100
Thread: Pink
Symbol: Quill
Is Counterfeit Money Undetectable?
Some counterfeit bills are good enough to pass a quick glance, especially in a fast-paced transaction. None hold up to a genuine bill's full set of security features, though. Checking the watermark, paper texture, and security thread together, rather than relying on just one, is what makes a fake far harder to miss.
Staying Vigilant
If you find yourself in possession of a counterfeit bill, report it to local authorities immediately.
Avoid touching the bill excessively, and cover it or seal it in a bag to preserve any fingerprints that may be on it. Keep in mind that the person who gave you the bill may not have realized it was fake.
Provide information about the person who used the bill to law enforcement, but don't confront or accuse them directly.
Think You've Received Counterfeit Money?
Reach out to your local branch or personal banker if you have questions about a bill or suspect fraud on your account.
Counterfeit Money FAQ
What is counterfeit money?
Counterfeit money is currency made to imitate genuine bills without legal authority. It has no actual value, and knowingly making, using, or passing it is a federal crime.
How can I check if money is real at home?
Hold the bill up to light to check the watermark and security thread, feel for raised printing and cotton-linen paper texture, and compare any printed symbols to the denomination's genuine design. No special equipment is required, though a UV light can confirm the thread color.
What is the most commonly counterfeited bill?
The $20 and $100 bills are the most commonly counterfeited denominations in the United States, largely because they're the most frequently used in everyday cash transactions.
Is counterfeit money completely undetectable?
No. Some fakes can pass a quick glance, but none replicate every security feature of genuine currency. Checking the watermark, paper texture, and security thread together is enough to catch nearly any counterfeit bill.
What should I do if I receive counterfeit money?
Report it to local authorities immediately. Avoid handling it excessively and seal it in a bag to help preserve fingerprints. Share any information you have about who gave it to you, but don't confront the person directly, since they may not have known it was fake.
Is it illegal to accidentally spend counterfeit money?
Knowingly passing counterfeit currency is a federal crime. If you unknowingly receive a counterfeit bill and later spend or deposit it, you generally won't face criminal charges, but the bill has no value and won't be reimbursed once identified.
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