LESSON 8: COUNTERFEIT IDENTIFICATION

This lesson presents the different security features of banknotes, coins, passport and
cheques that helps in counterfeit identification. It also explains the legal aspects of forgeries,
counterfeiting and falsification.

LEARNING OUTCOMES

At the end of the lesson, you should be able to:

 familiarize the different security features of banknotes, coins, passport and cheques,
 identify a counterfeit banknotes, coins, and cheques, and
 summarize the meaning of the term forgeries, counterfeiting and falsification.

Definition Of Terms
A. Counterfeiting - It is the crime of making, circulating or uttering false coins and
banknotes. Literally, it means to make a copy of; or imitate; to make a spurious
semblance of, as money or stamps, with the intent to deceive or defraud. Counterfeiting
is something made to imitate the real thing used for gain. The word is usually applied to
a form of forgery involving money. The right to make coin and print paper money is limited
by law to government and most nations prohibits not only the making of coin of their own
but also the making of coins or paper of any other government.

B. Falsification – The act/process of making the content/s of a document not the intended
content.

C. Forgery – The act of falsely making or materially altering, with intent to defraud, any
writing which if genuine, might be of legal efficacy or the foundation of a legal liability.

Making of Paper Money

A. Engraving – It is the process by which the line to be printed are cut into pieces of metal
by hand or with a machine. Ink is rubbed over the plate to fill the cuts in the metal and
the extra ink wiped-off the top. The pressure of the paper on the plate causes the ink in
the holes to be lifted on the surface of the paper. The ink lines will be felt to be raised
above the surface. The engraving process is used for the production of all genuine bank
notes.

B. Letterpress Printing – is the most common form of printing books, magazine, letterheads
and the usual printing in common uses. In the process, the letters are made on raised
pieces of metal which covered with ink and then impressed upon the paper in the same
 form as a rubber stamp or cliche. The serial numbers of a bank note are usually added
by this letterpress process after the note has been produced by an engraving.

C. Offset Printing – is the method a photograph is taken of the desire material and a print
is made on a specially prepared aluminum plate. The plate is kept wet with water. When
ink is applied, it sticks only these parts of the plate where printing is desired. The
aluminum plate is then put in contact with rubber roller which transfers the ink to the
papers. The offset process is quite used in small printing plants. Because it was
photographic process, it is the most common modern used by counterfeiter to make false
paper money.

I. BANK NOTE PAPER

Paper bank notes get a lot of handling. If a good grade of paper

is not used, they would soon wear out and have to be replaced.
Even with the best paper, the old two-peso bill usually wears out
and has to be replaced at the end of thirty days.

Government buys the very best grade of paper they can get, in
order that the paper will last as long as possible. Special paper
also makes it difficult for the counterfeiter to duplicate it. It is
usually the use of wrong paper that causes the counterfeited bank
note to be detected by ultraviolet light.

CHARACTERISTICS OF GENUINE AND COUNTERFEIT PAPER NOTE/BILL

GENUINE COUNTERFEIT

A. MAIN PRINT

Distinctive feel & embossed effect Generally smooth

1. The fingers will readily feel the main 1. The fingers will hardly feel the main prints of
print on the front & back on fairly new the front & back even on new notes.
notes. 2. This is brought about by offset print the most
2. This is due to the measurable thickness common process employed by counterfeiters
of the ink deposited on the paper which 3. The prints are mere stains on the coating of
gives the prints an embossed effect. the sensitized paper which is glossy.

B. PORTRAIT

1. Appears life-like 1. It appears dead.

2. The eyes sparkle. 2. The eyes do not sparkle.
3. The tiny dots and lines (Vignette) 3. It appears blurred, dull, smudgy and poorly
forming the details of the face, hair, printed.
etc. are clear, sharp and well defined. 4. Hair is lifeless.
4. Each portrait stands out distinctly 5. The face and/or forehead are often naturally
from background. This is noticeable white or pale due to absence of most of the
along the shoulders. details.
5. The background is composed of multi- 6. The concentric lines depicting the eyes often
colored fine pattern of lines in varying merged into solid printed areas.
tones and shades interlacing with each 7. The background often blends with the
other. These shadings or toning are portrait and is usually “scratchy.”
intricately printed in such a way that 8. The lines are thick with rough edges.
the contrast or shifting of colors 9. The multi-colored prints on genuine notes
creates the impression of life & are extremely difficult to duplicate and as a
vividness to the notes. result, counterfeit notes are usually off-color
& not of the right shade or tone.
C. WATERMARK

1. The watermark underneath the 1. This is imitated by printing white ink or dry
security lacework on the right-hand block on the finished paper.
side of the note is the same on the
colored portrait.
2. The design is placed by means of 2. Sometimes wax or other oily medium is
dandy roll during the manufacture of stamped to give transparency to the portion
the paper. where the designing appears.
3. Sharp details of the outline or the 3. Printed outline is placed on the inner sheet
light & shadow effect are discernible where merely a paper cutout is placed
when viewed with the aid of inside. As a result, course or harsh and
transmitted light. occasional irregular lines & sometimes
4. The relief of the features can be felt by opaque areas are very obvious.
running the finger on the design.

D. METTALIC THREAD

1. This is a special thread placed 1. Counterfeit by means of printing on the back

vertically on the paper during of the note, on the inner side of the paper,
manufacture. insertion of twin thread or simply folding the
2. On the surface of the paper where note vertically where the thread appears on
this thread is located are patterns of the genuine bill.
short vertical lines.

E. COLORED FIBERS OR SECURITY FIBERS

1. These fibers are scattered on the On counterfeit, this is simulated by printed

surface of the paper (front & back) at lines, cannot be picked off, but can be easily
random & can be readily picked off by erased with ordinary rubber or by agitating with
means of any pointed instrument. wet fingers.
2. The colors of these fibers are red &
blue.

F. LACEWORK DESIGN

The geometric pattern which looks On counterfeit, these geometric patterns are
like a delicate lacework along the border often blurred, round on the edges & blotch on
on both surfaces, embellishing the the joints. Its continuity could not be traced. The
portraits, value panel & vignettes are color appears faded.
multicolored & composed of harp lines
which are continuous & traceable even
at the joints.

G. SERIAL NUMBERS

1. The prefix letter/s & numbers (Six of 1. On counterfeit, the letters & numbers are
them except on replacement note) are poorly printed. They are usually of different
clearly printed. style.
2. They have peculiar style & are uniform 2. Most often, they are evenly spaced & poorly
in size & thickness. aligned.
3. Spacing of the numbers is uniform & 3. The numbers are too big or too small, too
alignment is even. thick or too thin & in certain cases shaded
on the curves.

H. COLOR OF EACH DENOMINATION

Genuine notes have polychrome background with one predominant color for each
denomination. You should know whose portrait is/are printed on each bill.
 OLD NEW

I. VIGNETTE

1. The lines & dots composing the vignettes 1. On counterfeit usually dull & poorly
are fine, distinct & sharp. printed.
2. The varying color tone gives a bold look to 2. It appears dirty.
the picture that makes it stands out of the 3. The lines are comparatively thicker
paper. with rough edges.
4. There is no variation in color tone so
that the picture appears flat.

J. CLEARNESS OF PRINT

The registry of the different printed In general, a spurious not exhibits a

features is perfect. The lines are very clear & Second-hand look. It is dirty due to the
sharp. There are no Burrs clinging to the sides. sputtering of ink on the interior area.
Over-inked areas are visible instantly.
The shadings & ornamentations of the
letters & figures are thick & usually
merged.

Examination Of Suspected Counterfeit Banknote.

As well as inspection under ultraviolet light, the investigator should look at the banknote
with a hand lens. He should pay particular attention to the quantity of the portrait in the bank
note. This is the one extremely fine detail of a good engraved plate. The color of the ink should
be compared with the color of a genuine banknote. It is very difficult for counterfeiter to match
exactly the same shade of ink by a genuine manufacturer.
Characteristics Of U.S. Paper Money

A. Types:
1. Federal Reserve note – with GREEN treasury seal and serial number.
2. United States Note – with RED treasury seal and serial number.
3. Silver Certificate – with BLUE treasury seal and serial number.

B. FEDERAL RESERVE NOTES - Each Federal Reserve Note also carries a regional seal at
the left of the portrait on the face of the bill. This seal is printed in black and bears the
name of the Federal Reserve Bank of issue. Numbers and letters representing the Federal
Reserve District in which that bank is located, are:

1 - Boston - “A” 7 - Chicago - “G”

2 - New York - “B” 8 - St. Louis - “H”
3 - Philadelphia - “C 9 - Minneapolis - “I”
4 - Cleveland - “D” 10 -Kansas - “J”
5 - Richmond - “E” 11 -Dallas - “K”
6 - Atlanta - “F” 12 - San Francisco - “L”

C. SALIENT FEATURES COMMON TO ALL TYPES: Portrait – every denomination has the
following:
$1 - Washington $50 - Grant

$2 - Jefferson $100 - Franklin

$5 - Lincoln $500 - McKinley

$10 - Hamilton $1000- Cleveland

$20 - Jackson $5000 – Madison

II. COINS

A. Definition - These are pieces of metal stamped by government authority, for use as money
or collectively referring to metal currency.
B. Making Of Coins
1. Casting is the most common method of making gold coins. Plaster molds bearing an
image of gold coins are filled (within a low temperature) with alloy made with lead or
tin. Some molds are used for high temperature metal such as copper or silver alloy.
2. Striking Or Stamping is the making of an impression of a coin or metal blank by
pressure.

C. Characteristics
1. Genuine coins show an even flow of metallic grains. The details of the profile, the seal
of the Republic of the Philippines, letterings & numerals are of high relief, so that it can
be readily felt distinctly by running the fingers on these features. The beadings are
regular & the readings are deep & even.
2. Counterfeit coins feel greasy & appear slimy. The beading composed of tiny round dots
surrounding the genuine coin appear irregular & elongated depressions & are not sharp
& prominent as in the genuine. The letterings & numerals are low & worn out due to
the lack of sharpness of details. The readings are uneven & show signs of filing.

D. Counterfeit Metal Money or Coin

Coin made of gold was to widely use but are not now often see. Government kept their
gold in the form of heavy bars called bullions and then issue papers for the value of gold.

Metal coins issued nowadays are mostly in amount for less than its face value. In most
countries, the possession of gold coins is now forbidden except for coin collectors.
 E. Examination Of Counterfeit Coins – the suspected counterfeit coin should be examined
by:
1. a magnifying lens
2. comparing it with a known coin

F. Defects In Cast Coin Are Usually Caused By:

1. formation of air bubbles, or
2. removal of small parts of the sole along with the coin.
The best place to examine a counterfeit coin is on the edge since there are usually special
milling marks or designs which are added to a genuine coin by machinery.

 A cast coin will have a faint joining mark caused by the parts of the molds. It will be
necessary for the counterfeiter to file the edge to destroy the rim. Evidence of this filing
can be detected with magnification.
 The counterfeiter will also try to remove various defects and blemishes by hard works
and this can usually be detected in the form of fine scratched or toolmark.

III. COUNTERFEIT PASSPORT

Passports are rarely counterfeit, because they are quite

complicated in design and manufacture. The most usual
method of forgery is to steal a genuine passport and make
change in it. Many safety features are incorporated in passport
and are easily detected by close inspection. Ultraviolet light is
very useful in this type of examination.

The investigator should look particularly at the

photograph in any passport as identification card. This is
always necessary because sometimes forgers remove and
change or substitute the picture. Hence, the position of
perforation caused by staples and another pasting device
should be studied carefully.

IV. COUNTERFEIT CHEQUE

A cheque, or check, is a document that orders a bank to pay a specific amount of money
from a person's account to the person in whose name the cheque has been issued. The person
writing the cheque, known as the drawer, has a transaction banking account where their
money is held. Cheques are also called negotiable instruments.

Methods to Spot Fake Cheque

Method 1: Exam the Check. Most checks that were written by a

legitimate business have one edge that is rough or perforated.
Examine the sides of the check to see if all sides are smooth. If
they are, it might have been printed on a computer.

Method 2: Look for a Bank Logo. Look on the front of

the check for the logo of the bank where the checking
account is held. If you don't see a logo, the check is likely
fake. If the logo is faded or faint, this is probably evidence
of the logo being copied from another source. If the logo
seems legitimate, look for an address. You need to check
the validity of the bank address, which you can do by
going online to the bank's website or calling the bank. Make sure each part of the address is
correct.
Method 3: Find the Check Number. Any legitimate
check issued by a bank has a check number. The check
number appears at the top right-hand corner of the
check. If the check does not have a check number, the
check is fake. If it does have a check number, check the
number against the number in the magnetic ink
character recognition (MICR) line.

The MICR line is the line of numbers at the bottom of a check printed by the issuing
bank that gives all the relevant numbers for a check. From left to right, the long string of
numbers contains the routing number, the account number, and the check number. The check
number should match the numbers on the far right of the line. If it doesn't match, the check
is likely a fake. If the check number is low, from 101-400 on a personal check or 1000-1500
in a business check, the check may be fake. This signals a new account, and 90 percent of
fake checks are written from new accounts.

Method 4: Examine the MICR Line. The MICR line

appears at the bottom of every check issued by a real
bank. Rub your finger over the line to check the feel
of the ink. Also look at the ink's quality. The special
ink used for the MICR line is dull and should print
smoothly. If it is raised or shiny, the check is fake.

Method 5: Feel the Paper. Real checks are typically printed on thick, sturdy stock paper. Rub
your fingers along the check. Notice the thickness of the check. Bend the check back and forth,
noticing the resistance the check gives. If the check is thin and flimsy, it is likely a fake check.
Fake checks are also typically printed on shiny paper. If the check is not printed on matte
paper, it might be fake. You can also try an ink test. Dampen your finger and run it across an
inked area of the check. If the color smears, it was printed on a color printer and is fake.

Method 6: Check for Irregularities. A few irregular aspects of a check can show it as being
fake:

 Look for a typed/printed address of the person who wrote the check.
 Check for spelling or typing errors within any of the printed areas.
 Match the dollar amount of the check with the written amount (they should match).
 Pay attention to areas where things have been added or erased from the check. If you
see anything out of the ordinary in these areas, you might have a fake check.

Source: (https://www.epcor.org/docs/Methods-to-Spot-a-Fake-Check.pdf)

Counterfeit checks include any checks that have been created fraudulently with the
purpose of stealing money from someone. This category can include fake cashier’s checks,
money orders, personal checks, and business checks.

In the example below, a check made out to “Cash” for $1,000 has been altered by changing
the “1” to a “9” and adding a recipient’s name. Although the black inks appear the same in
visible light, when subjected to certain frequencies of infrared light, the ink used to prepare
the genuine check reacts differently than the ink used to alter the check, making the alteration
obvious.
 Altered check written in black ballpoint pens when viewed with visible light (Courtesy
of Marie Durina)

Same altered check viewed with infrared radiation (Courtesy of Marie Durina)

LEGAL ASPECT OF FORGERY, COUNTERFEITING AND FALSIFICATION

(Pursuant to Title Four, Chapter One, Revised Penal Code – Crimes Against Public Interests)

FOREGERIES - What are the crimes called forgeries?

1. Forging the seal of the government, signature or stamp of the chief Executive (Art.
161).
2. Counterfeiting coins (Art. 163).
3. Mutilation of coins (Art. 164).
4. Forging treasury or bank notes or other documents payable to bearer (Art. 166).
5. Counterfeiting instruments not payable to bearer (Art. 167).
6. Falsification of legislative documents (Art. 172).
7. Falsification by public officer, employee or notary or ecclesiastical minister (Art. 171).
8. Falsification by private individuals (Art. 172).
9. Falsification of wireless, cable, telegraph and telephone messages (Art. 173).
10. Falsification of medical certificates, certificates of merit or service (Art. 174).
ACTS PUNISHABLE UNDER ART. 161:

1. Forging the great seal of the Government of the Philippines.

2. Forging the signature of the President.
3. Forging the stamp of the President.

C. What are the crimes under counterfeiting coins? They are:

1. Making and importing and uttering false coins (Art. 163);

2. Mutilation of coins – importation and utterance of mutilated coins (Art. 164); and
 3. Selling of false or mutilated coin, without connivance (Art. 165).

D. WHEN IS A COIN FALSE OR COUNTERFEITED? A coin is false or counterfeited, if it is

forged or if it is not authorized by the Government as legal tender, regardless of its intrinsic
value.

Counterfeiting means the imitation of a legal or genuine coin. It may contain more silver
than the ordinary coin. There is counterfeiting when a spurious coin is made. There must
be an imitation of the peculiar design of a genuine coin. (U.S. vs. Basco, 6 Phil. 110)

E. DEFINITION

1. “Import,” means to bring them into port. The importation is complete before entry
at the Customs House. (U.S. vs. Lyman, 26 Fed. Cas. 1024)

2. “Utter,” means to pass counterfeited coins. It includes their delivery or the act of
giving them away. A counterfeited coin is uttered when it is paid, when the offender is
caught counting the counterfeited coins preparatory to the act of delivering them, even
though the utterer may not obtain the gain he intended. (Decision of the Supreme court
of Spain of Jan. 11, 1913; Jan. 4, 1893; Nov. 12, 1888; and Dec. 24, 1885) Hence,
damage to another is not necessary.

3. “Mutilation” means to take off part of the metal either by filing it or substituting it for
another metal of inferior quality.

N.B. – The coin mutilated must be genuine and has not been withdrawn from
circulation. The coin must be of the legal currency or current coins of the Philippines.
Therefore, if the coin mutilated is legal tender of a foreign country, it is not a crime of
mutilation under the Revised Penal code.

F. ACTS PENALIZED UNDER ART. 166:

1. Forging or falsification of treasury or bank notes or other documents payable to bearer.

2. Importation of such false or forged obligations or notes.
3. Uttering of such false or forged obligations or notes in connivance with the forgers or
importers.

G. How “forging” and “falsification” are committed (Art. 169)? Forging is committed by
giving to a treasury or bank note or any instrument payable to bearer or to order the
appearance of a true and genuine document; and falsification is committed by erasing,
substituting, counterfeiting, or altering by any means the figures, letters, words, or signs
contained therein.

H. Forgery includes falsification and counterfeiting. With the definition given in this
article, the crime of counterfeiting or forging treasury or bank notes or other documents
payable to bearer or to order includes

(1) acts of counterfeiting or forging said instruments, and

(2) acts of falsification.

I. Meaning of “obligation” or “security” of the Philippines. The words “obligation or

security x x x of the Philippine Islands” shall be held to mean all –

a. bonds,
b. certificates of indebtedness,
c. national bank notes,
d. coupons,
e. treasury notes,
f. fractional notes,
g. certificates of deposits,
 h. bills,
i. checks,
j. drafts for money, and
k. other representatives of value issued under any Act of Congress.

J. Reason for punishing forgery - Forgery of currency is punished so as to maintain the

integrity of the currency and thus ensure the credit standing of the government and prevent
the imposition on the public and the government of worthless notes or obligations.

K. ACTS OF FALSIFICATION (Art. 171 & 172)

1. Counterfeiting or imitating any handwriting, signature, or rubric;

2. causing it to appear that persons have participated in any act or proceeding when they
did not in fact so participate;
3. Attributing to persons who have participated in an act or proceeding statements other
than those in fact made by them;
4. Making untruthful statements in a narration of facts;
5. Altering true dates;
6. Making any alteration or intercalation in a genuine document which changes its
meaning;
7. Issuing in an authenticated form a document purporting to be a copy of an original
document when no such original exists, or including in such copy a statement contrary
to, or different from, that of the genuine original; or
8. Intercalating any instrument or note relative to the issuance thereof in a protocol,
registry, or official book.

L. Must there be a genuine document in falsification? In falsification by -

1. making alteration or intercalation or

2. including in a copy different statement, there must be a genuine document that is
falsified.

M. Documents may be simulated or fabricated.

1. In falsification of a public document, the falsification need not be made on an official

form. It is sufficient that the document is given the appearance of, or made to appear
similar to, the official form. (People vs. Tupasi, C.A., G.R. No. 290-292, March 22, 1937)
2. The simulation of public, official or mercantile document is also contemplated in
falsification of those documents (People vs. David, C.A., G.R. No. 44368, Nov. 27, 1936)

N. Requisites of counterfeiting of signature (Art 171) - Imitation of another’s signature

need not be perfect. It is necessary only

(1) that there be an intent to imitate, or an attempt to imitate, and

(2) that the two signatures or handwritings, the genuine and the forged, bear some
resemblance to each other. (U.S. vs. Rampas, 26 Phil. 189)

O. THERE MUST BE AN INTENT OR ATTEMPT TO IMITATE - The attempt or intent to

imitate may be shown by a comparison of the handwriting or signature on the document
alleged to have been falsified with the genuine handwriting or signature supposed to have
been counterfeited. If there is sufficient resemblance between the genuine and the forged
signatures, it can be concluded that the accused had the intention and attempted to imitate
the signature of the offended party (U.S. vs. Rampas, supra).

P. THE FORGED AND THE GENUINE SIGNATURES OR HANDWRITINGS MUST BEAR

SOME RESEMBLANCE TO EACH OTHER.

1. The resemblance must be such that it is likely to deceive an ordinary person receiving
or dealing with the document (U.S. vs. Rampas, supra)
 2. Thus, it has been held that the fact of imitating a person’s signature on a check in such
a way that the same, when presented for collection “might have passed in the rush of
business,” although the handwriting is a little bit different, constitutes falsification (U.S.
vs. Litonjua, 4Phil. 485).

Q. WHEN ANY OF THE REQUISITES OF COUNTERFEITING IS NOT PRESENT. If there is

no attempt whatsoever by the accused to imitate the signatures of other persons so that
they are entirely unlike the genuine signatures of those persons, the accused may be found
guilty under paragrapgh 2, Art. 171, in causing it to appear that those persons have
participated in the act when they did not in fact so participate (U.S. vs. Friemuth, 3 Phil.
318; U.S. vs. Cinco, et al., 42 Phil. 839; people vs. Llave, C.A, 40 O.G. 1908).

R. IMITATING -(feigning) - The Spanish text of Art. 171 uses “fingiendo” (for imitation). In
feigning, there is no original signature, handwriting or rubric that does not exist. To feign
means to represent by a false appearance; to give a mental existence to; to imagine.