Counterfeiting is one of the nation's oldest crimes dating back to the mid-19th century. Counterfeiting of money is the criminal offense of making an imitation of money with the intent to defraud others into accepting it as real. It was a serious problem back then when banks issued their own currency. There was no uniform currency involved. By the time the Civil War came, about one-third of all currency in circulation was counterfeit.

By 1863, the counterfeiting problem was so extensive that the U.S. government had to take necessary enforcement measures. On July 5, 1865, the United States Secret Service, the same law enforcement organization charged with protecting the president of the United States, was formed to prohibit counterfeiting.

Even though counterfeiting has been substantially reduced since the induction of the U.S. Secret Service, this crime continues to this day and poses a threat to the nation's economy and a source of financial loss to its citizens.

With the advent of laser printers and copiers and other photographic techniques, the production of "funny money," or counterfeit money, is relatively easy. No doubt, the Secret Service must be well versed in the latest machinery used in counterfeiting our nation's currency.

Real money is manufactured by the government's master craftsmen who use laser inscribed engraved plates and printing machinery designed for that purpose. Most counterfeit methods involve the use of photomechanical or an "off set" method to make a printing plate from a photograph of a real note.

To guard against counterfeiting, you should know your currency.

Scrutinize the money you receive. Compare a suspected fraudulent note with a real one of the same denomination and series. Look for differences in the notes and not similarities.

1.Portrait--A portrait from a real note appears lifelike and stands out distinctly from the fine screen-like background. A counterfeit portrait is usually lifeless and flat.

2.Federal Reserve and Treasury Seals--On a real note, the sawtooth points of the Federal Reserve and Treasury seals are sharp, distinct, and clear. The counterfeit seals may have sawtooth points that are blunt, uneven, or broken.

3.Serial Numbers--Serial numbers on a real note have a distinctive style and are even spaced. They are printed in the same ink color as the Treasury seal. On a counterfeit note, the serial numbers may differ in color or shade of ink from the Treasury seal. The numbers may not be evenly spaced or aligned.

4.Border--The fine lines in the border of a real bill are clear and unbroken. On the counterfeit, the lines in the outer margin and scrollwork may be indistinct and blurred.

5.Paper--Real paper contains no watermarks. It has tiny red and blue fibers embedded throughout. Many times, counterfeiters try to simulate these fibers by printing tiny red and blue lines on their paper. With close inspection, it is revealed that the counterfeit note contains lines that are printed on the surface and not embedded in the paper. It is a crime to reproduce the distinctive paper used in the manufacturing of U.S. currency.

Some people think that if ink rubs off a bill, it is counterfeit. This is not true. Real currency can also leave ink smears.

6.Raised Notes--Real paper currency is sometimes changed in an attempt to increase its face value. One common practice is to glue numbers from high denomination notes to the corners of a note of lower denomination.

These bills are also considered counterfeit, and those who make them are subject to fines up to $1,000, or imprisonment up to 5 years, or both. If you believe you are in possession of a raised note:

oCompare the denomination numbers on each corner with the denomination written out at the bottom of the note (front and back) and through the Treasury seal.

oCompare the fraudulent note to a real note of the same denomination and series year.

7.Counterfeit Coins--Real coins are stamped out by special machinery. Most counterfeit coins are made by pouring hot, molten metal into molds or dies. This method often leaves die marks, such as cracks or pimples of metal on the counterfeit coin.

Today counterfeit coins are made primarily to emulate rate coins which are of value to rare coin collectors. Sometimes this is done by changing real coins to increase their monetary value.

The most common alterations are the addition, removal, or change of the coin's date or mint marks.

If you believe you are in possession of a counterfeit or fake coin, compare it with a real coin of the same value.