Verifying Banknotes - How to Identify Counterfeit Money

29.01.2025
Counterfeit money is a serious problem that affects both private individuals and companies and weakens confidence in the payment system. But how can you ensure that only legitimate money is accepted? And thus protect yourself from financial losses? From recognising important security features to effective detection methods and prevention through training - find out how you can effectively arm yourself against counterfeit money.

Avoid Counterfeit Money

Be Aware of Security Features

Prevention


Increase in Counterfeit Money: A Challenge for Consumers and Companies

The spread of counterfeit money is a serious problem that affects both consumers and companies. The German Central Bank regularly publishes statistics on the number of counterfeits registered in German payment transactions.
2023

In the Year of

56 T.

Number of Banknotes

28 %

Percentage Increase

5 Mi

In the Value of

It is important to recognise counterfeit money in order to protect yourself from fraud. The European Central Bank has integrated security features into euro banknotes that make it easier to distinguish genuine money from counterfeits. These are explained below and how you can protect yourself against counterfeit money.

Security Features of Real Money

Security features are essential to ensure the authenticity of banknotes and to prevent counterfeiting. This section presents the various security features in detail. You have the choice between two approaches: 

One is the general principle of "Feel, Look, Tilt" for quickly and effectively checking banknotes, or a detailed examination of individual banknotes to identify their specific features. 

The General Principle of "Feel, Look, Tilt"

Paper Quality

Authentic euro banknotes are made of cotton fibres and therefore have a firm, resistant and slightly rough feel. Counterfeit money often appears smoother or more paper-like and less robust.

Embossing and Tactile Features

Embossing and tactile features are physical features that are present on banknotes. These include, for example, perceptible relief or special structures that can be felt with the fingers. These features serve as an additional security level and for visually impaired people.
 

10 euro note watermark

Watermark

A frequently used security feature is the watermark. This is an image or pattern incorporated into the paper that is only visible on close inspection. This feature is difficult to copy and serves as a kind of fingerprint for banknotes.
 
50 euro note security threads

Safety Threads

Security threads are also a common feature of authentic money. These are special threads that are embedded in the paper and become visible on closer inspection. These threads can fluoresce or shimmer metallically and serve as an additional security measure.
 

100 euro note portrait hologram

Holograms

Holograms are another important security feature of authentic money. They are three-dimensional images that show different pictures depending on the viewing angle. These holograms are difficult to reproduce and are used to uniquely identify banknotes.
20 euro note portrait window

Tilt Images and Colour Images

Tilt images and colour images are further security features that can be found on banknotes. These images change depending on the viewing angle or incidence of light and serve as an additional level of security against counterfeiting.
 

Features of the Various Banknotes

Overall, the security features of authentic money are diverse and serve to ensure the authenticity of banknotes and prevent counterfeiting. It is important to familiarise yourself with these features in order to be able to distinguish genuine money from counterfeits.

Reliable Methods for Counterfeit Detection

There are various methods of counterfeit detection based on certain security features. Here are three methods that can help you identify counterfeit banknotes:

UV-Banknote Verifier

UV Banknote Verifiers are an effective tool for identifying UV security features on banknotes. All euro banknotes contain invisible UV features that are only visible under ultraviolet light.

A UV bill validator enables you to check these features and thus confirm the authenticity of the banknote. UV bill validators can also be used to check identity documents such as driving licenses or passports.

Banknote Counter with Integrated Bill Validator

Banknote counters with integrated bill validators are a practical solution for counterfeit detection.

These devices can count banknotes automatically and check for suspicious features at the same time. It also has a bundling function that divides the banknotes into handy portions.

Electronic Banknote Validator

Another useful tool for counterfeit detection are electronic banknote validators, which quickly check the security features electronically. These devices are particularly useful in the retail sector as they allow bills to be checked quickly at the till.

They can check banknotes for up to seven important security features for several currencies and thus ensure that only genuine banknotes are accepted. If the bill validator detects a counterfeit, it triggers an alarm. This reliably detects counterfeit banknotes.


 

Overall, these counterfeit detection methods are effective tools for protecting yourself against counterfeit banknotes. By using these methods in your company or at home, you ensure that you only accept genuine money and protect yourself against losses caused by counterfeit money.

How to React Appropriately if you Suspect Counterfeit Money

Counterfeit money is a serious problem that can affect not only retailers but also private individuals. If you suspect that you have been conned with counterfeit money, it is important to act correctly. This way you protect yourself and help to clear up the situation.
If you suspect counterfeit money, you should first contact the police. They will investigate the incident and take further action if necessary.
 
It is important that you never pass the counterfeit money on to other people. By doing so, you could unknowingly put other people in danger or even make yourself liable to prosecution. Keep the counterfeit money safe with you and keep it in an envelope so that you can hand it over to the police as evidence.
 
It is important that you do not take any action that could cause danger. Do not try to catch the perpetrator yourself or put yourself in danger. Your safety always comes first.
Overall, it is important to remain calm and act cautiously if you suspect counterfeit money. By acting correctly, you can help to curb counterfeit money crime and bring the perpetrators to justice.

Retail Fraud Prevention Strategies: Training and Security Measures

In many companies, the prevention of fraud and theft is an important issue. In the retail sector, where a lot of cash flows every day, employees should be trained and security measures implemented.
One important measure is to train employees in the security features of banknotes. Through regular training, employees can learn to recognize counterfeit money and thus prevent attempts at fraud. Because there is no substitute for counterfeit money! Therefore, you should not hand out goods before payment with valid money. 
Companies should also use bill validators to check the authenticity of banknotes. These devices are easy to use and can help to detect counterfeits.
Another important point is to set a specific amount above which cash payments are no longer accepted. This measure allows companies to reduce the risk of theft as there is less cash in circulation. In addition, larger amounts can be processed more securely using electronic payment methods.
Overall, companies should regularly train their employees and introduce security measures to prevent fraud and theft. By taking the right measures, companies can not only avoid financial losses, but also increase customer confidence in the security of their payments.

Conclusion: Measures Against Counterfeit Money for Security and Trust

Counterfeit money is a serious problem for companies and private individuals, as it weakens confidence in the means of payment and causes financial damage. The increase in counterfeit banknotes in 2023 shows that increased caution is necessary.
Cash-bill-magnifying glass-small
Knowledge of security features such as watermarks, holograms and UV features is crucial for recognizing counterfeit money. Counterfeit detection methods, such as UV bill validators and banknote counters, are effective tools.

If you suspect counterfeit money, you should inform the police immediately and always ensure your own safety.
Prevention through employee training and the implementation of security measures are essential to prevent fraud and theft. Companies can not only reduce financial losses through targeted measures, but also create trust among customers.

Frequently Asked Questions at a Glance

Counterfeit money can be quickly recognized by checking the paper quality, watermarks and security threads. Hold the bill up to the light to make the watermark and security thread visible. A hologram and finely printed details are also difficult to imitate and help with recognition.

A counterfeit euro note can often be recognised by its inferior paper, which feels different to that of real money. Missing or blurred security features such as holograms, watermarks and security threads are indications of a counterfeit. In addition, colour change effects and detailed printing are often inadequately executed on counterfeits.

20 and 50 euro notes are the most commonly counterfeited, as they are widely used and often in circulation. These notes offer a balance between value and inconspicuous appearance compared to larger notes. Due to their frequency of daily use, counterfeits of these notes are less likely to be noticed.

If you have received counterfeit money, you should not continue to use it, as this is a criminal offence. Report the incident to the police immediately and hand over the counterfeit money. Make a note of where and from whom you received it to help with the investigation.

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