Keeping an eye out for counterfeit money

Purveyors of passing counterfeit money tend to go where it is least likely to be discovered.

And when the Cheney Merchants' Association circulated an alert recently it was time to raise a big red flag to the community to be on the watch for bogus bills because those responsible preyed on the Associated Student Body funds of Betz Elementary School.

The CMA warning came from the Cheney Police Department who discovered that two counterfeit $10 bills were received at Betz through ASB sales.  The bills were taken to the bank by school staff.  The bank said the bills were created with a washing technique where an "0" was added to the "1" on a $1 bill to create a $10.  The bank has also seen counterfeit $50s, created by washing $5s and adding a "0."

Although Spokane Teachers Credit Union had not seen any counterfeit money locally, Jim Fuher, fraud prevention manager at STCU offered tips to the public on making sure they know what to look for.

He first recommended visiting the Internet for a government publication called, "Know Your Money."

But without that aid, "The first thing we look for is any type of a hologram," Fuher said. It's a face on the bill of denomination of $5 or greater and can be seen on the far right side when a bill is put up to a light source.

If that is not present, or if the $5 bill's Abraham Lincoln is in place of Ulysses Grant, found on the $50, it's a washed bill.

A second measure used on legitimate bills is a security strip.

"Again, $5 bills and above have a security thread in a specified location, a specified color," Fuher explained.

"A $5 bill would say 'USA Five' and 'Five USA,' inverted upright." That's easy to see on the right side, also, just below the words, "United States of America."

A final test is color-shifting ink and goes from green to gold - or a more of tan look - and back to green.

Another thing about a washed bill is the feel of the finished item. "It's smoother than a normal bill," Fuher said.

The Better Business Bureau noted, "Many businesses use special pens to detect counterfeit currency, however the pens cannot give a definitive confirmation about suspected altered currency, and they are not sanctioned by the U.S. Treasury," the warning said.

To wash a bill takes a special "secret sauce" as Fuher called it, and he obviously did not want to disclose what those chemicals are other than to say most consumers have those items under the kitchen sink.

Once soaked in the solution, "It wipes the print away," he said.

Another thing that is wiped away with counterfeit money is any profit those accepting the bill experiences.

Most counterfeit money shows up at smaller retailers, garage sales and fast food. Being vigilant about counterfeit money is something generally lost on the public, Fuher said. The ones who do focus on it are "Just us," he added.

While counterfeit money just recently surfaced in Cheney, the Secret Service will tell you that there are rings active all the time.

In fact, one recent group that operated out of Peru was among the biggest and best counterfeiters ever. According to a Washington Post story, the Secret Service seized $30 million destined for the U.S., specifically New York, New Jersey, Boston and the greater Northeast.

"We see some counterfeits in our branches but I wouldn't say it's a uptick or out of the ordinary," Fuher said.

When a counterfeit bill is accepted, and discovered, "We're instructed to fill out a counterfeit note report and send that all to the Secret Service," Fuher said. "That's why it hurts the merchants the most."

If a counterfeit bill is received, and while its value cannot be immediately recouped, the BBB says businesses can claim losses due to counterfeit money as an income tax deduction.

Paul Delaney can be reached at [email protected].