Fake holiday money: how to spot counterfeit euro and dollar banknotes

The summer holidays are upon us and many of us will be spending euros and dollars while we're abroad, but do you know how to spot if your cash is fake?

Where is the counterfeit money?

A counterfeit bank note is difficult to spot, but thanks to new technology there should be fewer of them around.

This year we’ve seen the launch of a new £5 note and a new £1 coin designed to be almost impossible to fake.

However, outside of the UK there is a huge amount of fake currency in circulation. There are an estimated $70 million of fake bills in circulation in the US and 331,000 fake euro notes were withdrawn from circulation between in the first six months of this year.

So, how can you tell if your holiday money is fake?

Spotting fake euros

The most counterfeited notes in Europe are €20 and €50 bank notes, but working out if you have one is straightforward.

“You can check your notes using the simple ‘feel, look and tilt’ method,” says the European Central Bank.

The paper your euros is printed on should feel “crisp and firm” and have raised areas on the left and right edges of the front of the note. The main image, lettering and the large number telling you the value of the note should feel thicker than the rest of the note.

Photo credit: Travelex

If you hold a euro note up to the light then the security thread should be a dark line with the € symbol and the notes value written in white lettering in the stripe. High value notes have a watermark that should be visible when held up to the light.

Finally, try tilting the note in the light. This should make the shiny number in the bottom left corner of the note have an effect that moves up and down and the number should change colour from emerald green to dark blue.

Tilting the note should also reveal a hologram in the silvery stripe on the right of the note. This should be a picture of Europa and a € symbol, a window and the value of the note.

Picking out fake dollars

The US dollar note is one of the most forged currencies in the world. Within the United States, the $20 is the most commonly faked note, but outside of America it is the $100 bill.

One issue with dollars is that because all the denominations are printed on the same size notes, counterfeiters bleach low value notes and reprint them as high value bills. So they take a $1 bill, bleach it, then reprint it as a $100 bill.

The security features on dollar bills increase depending on the value of the note. You can test whether all notes are real with a magnet. Fold the bill in half, then unfold it so there is still a crease in the middle. Hold a magnet over the value number in either of the bottom corners of the note and the bill should move.

Notes worth $5 or more also have a security thread in them that shows up under a UV light and they have a watermark that you should be able to see if you hold them up to the light.

Photo credit: Travelex

If you have a newer note worth $10 or more, the number on the lower right corner should change colour from copper to green when you tilt it in the light.

On top of that, new $100 bills have a 3-D security ribbon patterned with bells and the number 100.

If you think you have a counterfeit note you should take it to the local police station.

Whatever happens on your next holiday, make sure you've got travel insurance in place. Compare quotes with loveMONEY