Counterfeiting, as it pertains to currency, is any fraudulent creation or alteration of currency designed to replicate legal tender. For about as long as humans have been using money, they have been counterfeiting it—and facing serious consequences when caught. The amount of counterfeit US currency currently in circulation is estimated to be anywhere between $15M to $30M as of 2025.
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In 2019, after Jeff Turner forged US banknotes such as the 1996-series $100 bill and the 2013 “blue note,” he was indicted on federal conspiracy and served 10 months in prison. In this video, Turner explains how to spot a fake banknote, and provides information about the materials and processes required to make fake money.
The pair used a practice called “coin clipping,” shaving the edges off silver coins to decrease their weight before sending them back into circulation. When banknotes rather than coins gained popularity, counterfeiting methods evolved—in the 1700s, an early banknote counterfeiter named Mary Butterworth created counterfeit paper money using starched cloth and a hot iron to transfer the pattern of a banknote onto paper.
By the 1860s, an estimated one-third of US currency in circulation was counterfeit. In 1865, the Secret Service was created specifically to combat the country’s serious counterfeiting problem, which had led to widespread financial instability. This was partly due to the lack of federal currency standardization in the country at the time.
You may have noticed that dimes and quarters feature small ridges on their sides that other coins, like pennies and nickels, don't have. This video can help you learn more about why the practice, called "reeding," was first started—and why it's still used today.
Inserting fake currency into an economy can help destabilize it. During the American Revolution, for instance, the British distributed counterfeit “Continental Dollars” in an effort to devalue the currency being used in the US at the time with the goal of undermining America’s growing financial credibility. The Nazis also ran an extensive counterfeiting scheme during WWII.
That’s just one of the many anti-counterfeiting security measures that the Australian government implements on its currency. Popular banknotes from around the world all include their own unique security features—this infographic outlines a few unique ones.
Counterfeit operations are often controlled by rogue governments, drug cartels, and more. These organized crime rings often sell counterfeit bills wholesale, for anywhere between 40 and 70 cents per dollar.
From a counterfeiting and forgery perspective, this makes the $1 bill one of the least secure American banknotes. In this video, the Wall Street Journal sits down with a leading currency expert to explore the techniques used to keep cash safe and figure out what's going on with the $1 bill.
There are both federal and state laws that punish people who use or create counterfeit money. The crime can not only trigger hefty fines, but could also lead to decades behind bars.
In the US, each bill also has its own plate number, series year, Treasury seal, and more. Each design helps track money and combat counterfeiting.
The United States is home to more than 33 million businesses, the vast majority of which are small businesses, with millions being created (and others closing shop) every year. These businesses often rely on loans, provide the goods and services that keep the economy flowing, and sometimes even grow large enough to enter public markets or provide private investment opportunities. Explore key topics central to business and finance, from the role of the Federal Reserve to how initial public offerings work, how millions of American students finance higher education, and more.