NEW BILLS HARDER TO COPY

If you receive a counterfeit note:

Do not return the bill to the passer.

Delay the passer if possible.

Telephone the police or U.S. Secret Service at (573) 539-2238.

Observe the passer's description and that of any companion or vehicle used.

Write your initials and the date on the bill and surrender the bill only to the police or U.S. Secret Service.

Do not handle the note. Carefully place it in a protective covering such as an envelope.

Most counterfeiting reported to Secret Service

Advances in computer and copying technology have made it easier for counterfeiters to produce and pass bogus bills, and authorities warn merchants in the area to be on the lookout for such money floating around the area.

Although the number of counterfeit bills passed in Cape Girardeau has not increased significantly in recent months, police said six incidents of counterfeiting have been reported to the department in the past month.

Two of the incidents involved counterfeit traveler's checks. The other four were with phony bills. Of the four counterfeit bills, two were $100 bills, one a $50 bill and the fourth a $20 bill.

In addition to the six reported cases, there have been other cases that have not been reported to the local police. In those incidents the banks received the bills from merchants that directly contacted the U.S. Secret Service.

Special agent John M. Britt of the Secret Service said the advent of advanced computer technology with laser scanners and laser printers has made counterfeiting bills easier.

The Secret Service -- the branch of the U.S. Treasury Department best known for its protection of the president -- was established on July 5, 1865, for the express purpose of suppressing counterfeiting.

Because counterfeiting is a violation of federal law, the Secret Service is generally given the responsibility of investigating counterfeit cases. Many banks will report incidents of counterfeiting directly to the Secret Service.

However, Cape Girardeau Police Sgt. Carl Kinnison said if an incident of counterfeiting is reported, the police will investigate. If the amount of counterfeit money is significant, the Secret Service will take over. If the amount is not significant, the Secret Service might ask local authorities to handle the case.

Ultimately, it is the Secret Service that determines who will investigate the case, Kinnison said, explaining that most counterfeiting involves someone coming in from out of town, buying something inexpensive, passing the fake bill, getting as much good money as possible in change and then leaving town.

Oftentimes those passing the bogus bills will wait until a busy time at the store when there are a lot of customers waiting in line to check out. The counterfeiters will then pass the bill knowing the clerks might not take the time to look thoroughly at the bill.

Despite the advances in technology, it is still fairly easy to determine when a bill is counterfeit and when it is authentic, Britt said. Because authentic currency is made of special paper not available to the public, most people can detect the difference simply by looking at or feeling the money.

Genuine currency paper has tiny red and blue fibers embedded throughout that can be seen on close inspection. The paper also has a distinct feel to it, Britt said.

Also, beginning in 1996, the government began issuing a new currency design with new security features meant to make the currency easier to recognize and more secure against technology, including color-shifting ink, a watermark, microprinting, a security thread and other features difficult to copy. It is the nation's first currency redesign in 70 years.

The new design of the $100 bill -- what had been the most counterfeited note -- was first issued in March 1996. In October 1997, the newly designed $50 bill was issued. The new $20 bill will be issued next month.

Claudia Dickens of the Bureau of Engraving and Printing said that new designs for the $10 and $5 bills are in the works. Both new designs could be issued next year, Dickens said.

The bureau is not certain whether new designs will be made for the $2 and $1 bills. The $2 bill is not heavily used and doesn't seem to warrant a new design, Dickens said.

Because there is a debate in Congress about issuing a new $1 coin, some members of Congress have said there is no need for a new $1 note, she said.

In addition to the safeguards, there are ways merchants can protect themselves against counterfeit money.

Several stores in the Cape Girardeau area have started using special markers to help them detect counterfeit money.

The special paper used in authentic currency reacts differently than other paper to the counterfeit markers. If the marker is used on an authentic bill, the ink will remain yellow, but if the marker is used on a bogus bill, the ink will turn dark brown, even black.

Over the past decade the Secret Service has seized about 90 percent of all known counterfeit currency before it reached circulation, but Britt warns that counterfeiting still represents a danger to the nation's economy.

Even more, it is a loss to the business owner. A counterfeit bill is not replaced when it is discovered. The business owner simply loses the money and the merchandise it purchased.