A counterfeit banknote detection pen is a pen used to apply iodine-based ink to banknotes in an attempt to determine their authenticity. The ink reacts with starch in wood-based paper to create a black or blue mark but the paper in a real bill contains no starch, so the pen mark remains unchanged.
Counterfeit banknote detection pens are used to detect counterfeit Swiss franc, euro, and United States banknotes, amongst others. Typically, genuine banknotes are printed on paper based on cotton fibers and do not contain starches that are reactive with iodine. When the pen is used to mark genuine bills, the mark is yellowish or colorless.
Such pens are most effective against counterfeit notes printed on a standard printer or photocopier paper. The chemical properties of US banknotes printed before 1960 make marking pens useless, resulting in false positives. One example of this complication taking place happened in 2016, in which a 13-year-old student was arrested by police after she attempted to pay for lunch with a red seal Series 1953 $2 bill after the school’s counterfeit pen was unable to prove its authenticity.
Detecting counterfeit currency is serious business for merchants, grocery stores, and casinos that turn over a lot of cash. Because banks do not reimburse a depositor for counterfeits, these companies need to ensure the validity of the money they accept. Criminals and counterfeiters will quickly identify retailers and other businesses with lax testing processes and can pass thousands of dollars in false bills before anyone notices.
As a result, innovations like the counterfeit banknote detection pen were developed. This device offers a quick and easy means of testing the authenticity of certain types of banknotes like US currency – but is this method reliable, and does it even work anymore?
Banknotes today are packed with security features that make them virtually impossible for a casual counterfeiter to replicate. Between micro printing, raised printing technologies, and color-shifting ink, counterfeiters can never really get everything right when attempting to create a fake banknote. So instead, they focus on a good enough fake that can fool a merchant.
The counterfeit detector pen is a logical response to these amateur counterfeiters. Since most of these rip-off operations aren’t very sophisticated, they use regular paper instead of the cotton and linen hybrid that comprises American bills today, and that’s where they get caught.
Counterfeit detector pens contain a solution of iodine that reacts with the starch molecules that are naturally present in a wood-based paper, leaving a dark stain that exposes the note as fake.
The iodine solution is non-reactive with cotton and linen fibers, as well as the polymer plastic notes used in Canada and England. As a result, the pens are also effective at detecting counterfeits of these currency types as well.
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