Counterfeit money varies from genuine currency in a variety of ways, and if you familiarize yourself with the differences, you will better your chances at spotting counterfeit bills if you should ever come across one.

First of all, if you suspect you are in possession of a counterfeit bill, look at the money carefully. Compare the bill in question with a genuine note of the same denomination and series. Make certain to pay close attention to the quality of printing and paper characteristics. Remember you are looking for differences, not similarities.

There are several factors to consider when comparing a counterfeit bill to a genuine bill:

Portrait

The genuine portrait appears lifelike and stands out distinctly from the background. The counterfeit portrait is usually flat and dull in color. Details blend into the background, and they are often too dark or blemished.

Federal Reserve and Treasury Seals

On a genuine bill, the saw-tooth points of the Federal Reserve and Treasury seals are very distinct. They are also sharp and clear. The counterfeit seals may appear uneven, dull, or have broken saw-tooth points.

Border

The fine lines in the border of a genuine bill are clear and unbroken. On the counterfeit, the lines in the outer margin and scrollwork may be blurred and unclear.

Serial Numbers

Genuine serial numbers are distinctive in style and are evenly spaced. The serial numbers are printed in the same ink color as the Treasury Seal. On a counterfeit, the serial numbers may differ in color or shade of ink from the Treasury seal. In addition, the numbers may not be uniformly spaced and they often are not aligned.

Paper

Genuine currency paper has tiny red and blue fibers embedded throughout. Counterfeiters try to simulate these fibers by printing tiny red and blue lines on their paper. However, under close inspection it will show that on counterfeit bills the lines are printed on the surface and are not embedded in the paper.

There are certain other features to look for as well:

Paper Features

With every currency produced, a corresponding paper is manufactured. Banknote paper is made from cotton pulp, which gives it better durability than commercial papers and a very distinctive feel.

Often the way a counterfeit bill feels causes someone to take a closer look. If bank note paper is held under ultra violet light it is dull compared to commercial papers.

The paper manufacturing process allows for a number of features to be created.

Watermark

The watermark is one of the most obvious security features of a paper banknote. When held up to the light an image can be seen in the paper, usually a portrait similar to that printed on the note.

The image of the watermark is caused by different thickness of paper, with light areas of the watermark being a result of less paper.

The highlighted effect of "thin" paper is sometimes used as an added security effect in small specific areas within a watermark.

A watermark is an excellent security feature. A counterfeiter is very unlikely to manufacture his own paper. Watermarks can be simulated in some ways, but the effects are crude.

Threads

Threads are embedded within the paper fiber and can be invisible or have a starburst effect. The thread appears to weave in and out of the paper when viewed from one side. However when held up to the light the thread will always appear as a solid line. Features can be built into the thread material themselves. The thread is a difficult feature to counterfeit but counterfeiters have been known to print a thin gray line or a thin line of varnish in the area of the thread.

Other Embedded Features

While the paper is in the pulp stage, various elements can be added that then become embedded in the paper in a random fashion. It is also possible to tint the paper.

Plastic

Some countries have adopted the use of plastics to create their currency. Security features are built into the plastic. There is a coating with an opaque white transparency. Simulated watermarks are produced by printing additional designs in opaque white. These features offer good protection from color copier counterfeiting.

If you familiarize yourself with the features and characteristics of genuine currency and make careful comparisons if you encounter a counterfeit bill, you will be able to distinguish a counterfeit bill from a genuine bill with ease.