Former Secret Service Agent Explains How to Detect Counterfeit Money | Tradecraft | WIRED

Summary

The video script delves into the history and impact of counterfeit currency in the United States, highlighting the critical role of the Secret Service in combating this illegal activity. It explains the sophisticated techniques used by counterfeiters and the security features incorporated into Federal Reserve notes to prevent forgery. The script also touches on historical attempts to destabilize the U.S. economy through counterfeiting, emphasizing the ongoing battle to protect the nation's financial integrity.

Takeaways

• 💡 The United States Secret Service was initially formed during the Civil War to combat the rising issue of counterfeit currency produced by the Confederate Army.
• 🔍 Banks and financial institutions receive instruction from the Secret Service on how to detect counterfeit money, which often has minute differences noticeable to the trained eye.
• 💼 The Secret Service's mission is to suppress counterfeit currency and ensure it doesn't circulate within the U.S. economy.
• 🎨 Counterfeit currency is not a simple home-printed item but a high-level artistic replication of Federal Reserve notes, often undetectable to the untrained eye.
• 🌍 During WWII, the Nazis attempted to destabilize the U.S. dollar by forcing Jewish artisans to create counterfeit currency, but these efforts failed due to expert detection.
• 💸 In major financial areas of the U.S., large amounts of counterfeit currency are seized weekly, highlighting the ongoing issue.
• 🔐 Federal Reserve notes contain various security features, some of which are classified and closely guarded by the U.S. Government.
• 🌀 The presence of watermarks, optical varying ink, and microprinting are common security features that help distinguish genuine currency from counterfeit bills.
• 🔬 Microprinting, such as the fine print on the lapel of the $100 bill featuring 'The United States of America,' is a security feature that is hard to replicate.
• 🌈 Colored fibers embedded in the bills, some of which glow under UV light, serve as indicators of genuine currency.
• 📏 The serial number on each Federal Reserve note is a tracking device used by the Secret Service to identify counterfeit bills that do not follow a specific sequence.
• 🏦 Counterfeit bills may not align with the correct Federal Reserve Bank, which is indicated on the bill and can be a key indicator of forgery.

Q & A

What is the historical role of counterfeit money in the United States?

Counterfeit money has played a significant role throughout U.S. history, particularly during the Civil War when the Confederate Army printed counterfeit currency to destabilize the North's economy.

What assistance does the Secret Service provide to banks and financial institutions?

The Secret Service offers training and instruction on how to detect counterfeit money, focusing on the minute differences that are obvious to trained professionals.

Why was the United States Secret Service formed?

The Secret Service was formed during the Civil War in response to the rising amount of counterfeit currency being printed by the Confederate Army and distributed in the North.

What was Hitler's strategy during World War II regarding counterfeit currency?

Hitler and the Nazis forced Jewish artisans to create counterfeit currency in an attempt to destabilize the U.S. dollar globally, but these attempts failed.

How do security features in Federal Reserve notes help in detecting counterfeit bills?

Security features such as watermarks, optical varying ink, microprinting, colored fibers, and 3D hologram strips are embedded in genuine Federal Reserve notes to deter counterfeiting.

What is the significance of the watermark in Federal Reserve notes?

The watermark is an imprint into the paper itself, developed during the paper stock's creation, and is a key security feature that is not easily replicated by counterfeiters.

What is optical varying ink and how does it help in identifying genuine bills?

Optical varying ink is an image-shifting ink that changes color as the bill moves, visible to the naked eye, and is a common security feature in the 20 and 100 dollar bills.

Why is microprinting an effective security feature against counterfeiting?

Microprinting is fine artistic work that cannot be replicated by photocopying, as it would appear as a straight line instead of the intricate design, making it a key indicator of a counterfeit bill.

What security feature is present on the lapel of Franklin on the $100 bill?

On the lapel of Franklin on the $100 bill, there is microprinting that reads 'The United States of America,' which is difficult to see without magnification and serves as a security feature.

How do colored fibers and UV lighting contribute to the security of Federal Reserve notes?

Colored fibers, red and blue, are embedded in the bills, and some fibers glow under UV lighting, which are key indicators of genuine bills and difficult for counterfeiters to replicate.

What role do serial numbers play in identifying counterfeit Federal Reserve notes?

Serial numbers are unique to each genuine Federal Reserve note and are used by the Secret Service as a tracking device. Counterfeit bills often do not follow the specific sequence of serial numbers, making them identifiable.

How do counterfeiters' attempts to align bills with the right Federal Reserve Bank affect the authenticity of the bills?

Counterfeiters often fail to align the bills with the correct Federal Reserve Bank, which is a key indicator of a counterfeit bill, as genuine bills are associated with a specific bank.

Outlines

00:00

💼 History and Role of the Secret Service in Counterfeit Currency

The paragraph discusses the historical significance of counterfeit money as a tool of sabotage and its impact on the United States. It highlights the role of the Secret Service, which was formed during the Civil War to combat the rising issue of counterfeit currency printed by the Confederate Army. The paragraph also touches on the high-level artistry involved in creating counterfeit Federal Reserve notes, which are often undetectable to the untrained eye. It mentions the failed attempts by the Nazis during World War II to destabilize the U.S. dollar by creating counterfeit currency. The Secret Service's ongoing efforts to suppress counterfeit currency and the seizure of such bills in major financial regions are also covered. The paragraph concludes with an introduction to the security features incorporated into Federal Reserve notes, some of which remain classified.

Keywords

💡Counterfeit money

Counterfeit money refers to currency that has been unlawfully copied or imitated with the intent to deceive. It is a significant issue because it undermines the credibility and stability of a nation's financial system. In the video, counterfeit money is depicted as a historical and ongoing threat, with the Secret Service actively working to detect and suppress it. The script mentions the Confederate Army's use of counterfeit currency during the Civil War and the Nazis' attempt to destabilize the U.S. dollar during World War II as examples of its use as a weapon.

💡Secret Service

The United States Secret Service is a federal law enforcement agency that originally formed to combat counterfeit currency. It is responsible for the security of the nation's financial system, including the detection and prevention of counterfeit money. The script highlights the Secret Service's inception during the Civil War in response to counterfeit currency and its ongoing role in protecting the U.S. economy from counterfeit bills.

💡Spurious money

Spurious money is a term used to describe money that is not genuine and is often counterfeit. The script mentions that the Secret Service offers instruction to banks and financial institutions on how to detect such money, indicating that there are minute differences that can be identified by trained professionals.

💡Watermarks

Watermarks are a security feature incorporated into Federal Reserve notes, which are visible when the paper is held up to light. They are embedded into the paper itself during the manufacturing process and serve as an indicator of authenticity. The script describes how both the $20 and $100 bills have watermarks, which are part of the security measures to prevent counterfeiting.

💡Optical varying ink

Optical varying ink, also known as image shifting ink, is a security feature that changes color as the bill moves, making it difficult to counterfeit. The script mentions this feature as being present in the lower right-hand corner of the $20 and $100 bills, contributing to the bill's security against counterfeiting.

💡Microprinting

Microprinting is a security feature that involves extremely fine printing, which is difficult to reproduce without specialized equipment. The script explains that genuine Federal Reserve notes have microprinting embedded in the plates, making it a key indicator of authenticity. For example, the script mentions microprinting on the lapel of Benjamin Franklin on the $100 bill.

💡Colored fibers

Colored fibers are another security feature in Federal Reserve notes, which are embedded within the paper and can be seen under UV lighting. The script describes the presence of red and blue fibers in the bills, which, along with the UV-reactive fibers, help to distinguish genuine bills from counterfeit ones.

💡3D hologram strip

A 3D hologram strip is a security feature found on higher denomination bills, such as the $100 bill. It is imprinted into the fiber of the paper, making it another indicator of a genuine bill. The script explains that this strip is part of the advanced security measures that protect against counterfeiting.

💡Serial number

The serial number on a Federal Reserve note is a unique identifier that is used by the Secret Service as a tracking device. The script points out that every genuine bill has a serial number, and counterfeiters often fail to replicate the correct sequence, making the serial number a key indicator of authenticity.

💡Federal Reserve Bank

Each Federal Reserve note is associated with a specific Federal Reserve Bank, which is indicated on the bill. The script mentions that counterfeiters often fail to align the bill with the correct Federal Reserve Bank, providing another clue that a bill may be counterfeit.

💡Security standards

Security standards are the measures and features implemented by the Department of the Treasury and the Secret Service to protect the integrity of the U.S. currency. The script discusses how these standards are inherent in every bill and are designed to prevent counterfeiting and maintain the credibility of the U.S. financial system.

Highlights

Counterfeit money is a significant weapon of sabotage.

Counterfeit currency has played a vital role in US history.

Secret Service offers training to banks on detecting counterfeit money.

There are minute differences in counterfeit bills that are detectable by experts.

The Secret Service was formed during the Civil War to combat counterfeit currency.

High-level counterfeit currency is an artistic formation of Federal Reserve notes.

Counterfeit bills are often undetectable to the common person and sometimes even banks.

During WWII, the Nazis attempted to destabilize the US dollar with counterfeit currency.

US experts secured the Treasury and financial institutions from counterfeit impacts.

Hundreds of thousands of dollars of counterfeit currency are seized weekly in the US.

The Secret Service's role is to suppress counterfeit currency circulation.

Federal Reserve notes contain classified security features.

Watermarks are embedded into the paper of 20 and 100 dollar bills.

Optical varying ink changes color on the move and is a visible security feature.

Microprinting is a key indicator of genuine bills and cannot be photocopied.

Microprinting on the $100 bill includes fine text under magnification.

Colored fibers and UV-reactive elements are embedded in genuine bills.

Higher denomination bills have a 3D hologram strip as an additional security feature.

Every bill has a unique serial number used by the Secret Service for tracking.

Counterfeit bills often do not follow the correct serial number sequence.

Counterfeiters aim to undermine the credibility of the US financial system.

The Secret Service works with the Treasury to develop inherent security standards in bills.

Transcripts

- [Reporter] Counterfeit money is an important weapon

of the saboteur.

- [Jonathon] Throughout time,

counterfeit currency has played a vital role

in the history of the United States.

- [Reporter] To banks, and other financial institutions,

Secret Service offers instruction

in how to detect spurious money.

There are always minute differences obvious

to the trained eye which make detection possible.

- Since the Secret Service inception,

they have worked tirelessly

to suppress counterfeit currency.

[suspenseful music]

A lot of people are unaware

that the United States Secret Service

was formed during The Civil War in response to the rising

of counterfeit currency that was being printed

by the Confederate Army and distributed in the North.

When we talk about counterfeit currency,

what we're talking about isn't something

that you print at home,

we're talking about a very high-level artistic formation

of Federal Reserve notes.

Notes that are so undetectable to the common person,

and they're very oftentimes not even picked up in banks.

During World War II,

Hitler and the Nazis tried the same methodology.

They forced Jewish artisans to create counterfeit currency

to try to destabilize the U.S. dollar globally,

all of those attempts failed.

Their experts in genuine currency said they were able

to secure the Treasury and the U.S. financial institutions

from this impact of counterfeit currency.

In major financial regions of the United States,

hundreds of thousands of dollars of counterfeit currency

are seized every week.

The role of the Secret Service is to suppress

that counterfeit count and ensure

that those bills don't continue circulating

through the U.S. economy.

Incorporated into every Federal Reserve note

are certain security features.

Some of those security features remain classified

and are closely guarded secrets of the U.S. Government.

Here, we're looking at a 20 and $100 Federal Reserve note.

Both have watermarks that are printed into the paper itself.

A process that's developed when the paper stock is made

and it's embedded into the fibers.

It's not a print,

it's actually an imprint into the paper itself.

Additionally, a common feature that is seen

with the naked eye,

is present in the lower right-hand corner

of the 20 and the $100 bill,

and it's called optical varying ink.

It's image shifting ink that changes color

as the bill moves.

Microprinting is fine, fine artistic work,

that's embedded in the genuine plate,

and what that means is you can't take a bill

and photocopy it and have it have

the same quality in the microprinting,

it'll come through as just a straight line.

That's a key indicator that it would be a counterfeit bill.

One feature on the $100 bill,

if you look very finely printed on the lapel of Franklin,

is microprinting, it says the United States of America.

Very hard to see with the naked eye,

but under magnification, it's another security feature.

An finally, embedded are colored fibers,

red, blue, and there's also some that glow with UV lighting.

These are key indicators of a genuine bill.

On the higher denomination bills,

there's a 3D hologram strip that's imprinted into

the fiber itself that is again,

another indicator of a genuine bill.

Every bill from the one to the 100,

has a serial number,

that serial number for the Secret Service

is used as a tracking device.

We know what genuine bills look like

and we know what their serial number and sequence are.

Counterfeiters don't, necessarily.

So oftentimes,

a bill that does not follow a specific sequence

are a key indicator of a counterfeit Federal Reserve note.

Every genuine Federal Reserve note is associated

to a Federal Reserve bank,

that is indicated on the bill via specific locations here.

Oftentimes counterfeiters don't align the bill

to the right Federal Reserve Bank,

again, a key indicator of a counterfeit bill.

Counterfeiters seek to undermine the credibility

of the U.S. financial system by just the sheer manufacturing

of counterfeit currency.

The Secret Service, mindful of the impact that this has,

they've worked with the Department of the Treasury

to come up with security standards

that are inherent in every bill.