A banknote is a piece of paper currency, establishing a central bank’s promise to pay a stipulated amount to its holder on demand. Counterfeit money is worthless, fake money created as an exact imitation of genuine currency with the intention to swindle or defraud. Forged currency has been created ever since the invention of banknotes.
When a person or business receives counterfeit money and deposits it into a bank, the bank seizes and destroys it and the person or business becomes a victim for whom there is nothing offered in compensation. Counterfeit money deducted by a bank from a business’s net profit can mean ruin for that business. For those businesses taking in cash, counterfeit currency detectors are of the utmost importance.
A counterfeit currency detector identifies whether or not a banknote and some official documents is authentic or counterfeit. In order to make counterfeiting more difficult, banknote currency is endowed with security features. The security features can be UV marks, metal threads, or watermarks. To confirm the security features of currency, counterfeit money detectors use one or more counterfeit detections.
Counterfeit detections are components that verify whether or not a banknote has particular security features. Genuine banknotes have UV marks printed on them. The component or feature of a UV counterfeit detection verifies whether there is or is not UV marks on a banknote. If the currency does not have the presence of UV marks, it is counterfeit.
The accuracy of counterfeit detection increases when the counterfeit currency detector has more counterfeit detections to verify security features. Although those counterfeit money detectors equipped with more counterfeit detections have increased accuracy, they are generally more expensive. The rule is, the more expensive the counterfeit currency detector, the more accurate the counterfeit detection.
Some currency has security features that are more difficult to counterfeit than others are. Infrared and metal thread is the most advanced security features that make it more difficult to counterfeit currency. There are advanced counterfeit money detectors with the capability to verify the currency with these more advanced security features.
A Note Checker Pen is an example of a counterfeit currency detector. A note checker pen uses an iodine solution that creates a dark stain as a reaction to the starch in wood-based paper. Genuine banknotes are produced using fiber-based paper. When the note checker pen’s iodine solution is applied to a genuine banknote, little or no discoloration occurs. Currency printed on regular copy paper rather than authentic fiber-based paper is detected by the note checker pen. Note checker pens are an expensive and quick method to verify currency. A note checker pen loses its ability to detect counterfeit currency if counterfeit money is printed on fiber-based paper.