May 24, 2000 -- All right now, all you folks out there, how about a big welcome for two people you know and love.

Please welcome Abe and Alex, that's right come on down Abraham Lincoln and Alexander Hamilton and show us your brand-new look!!

The new phony-fighting $5 and $10 bills, designed to defeat increasingly savvy counterfeiters, have now made their debut.

The new bills have distinctive counterfeit-busters, such as off-center portraits, watermarks and fine-line printing in the background. The new $10 has a color-shifting ink that alternates between green and black when viewed at different angles.

The next generation of bills, due in 2003, may even come in a rainbow of colors as Bureau of Engraving and Printing technicians keep ahead of counterfeiters.

"We're continuing to work on making it more difficult to the counterfeiter, and people are out there using very advanced technology to counterfeit the bills which are in circulation now," says U.S. Treasurer Mary Ellen Withrow.

Keeping up with criminal minds
Counterfeiting has been kept in check to some degree by security features built into new $100 bills that have been entering circulation during the past three years, and because new, more counterfeit-proof $50s were introduced in 1997. In 1998, new-style $20s were introduced, as well.

But, counterfeiters don't have to work as hard making their funny money today, either. It's easier to make than ever.

"Computers have made it easier for the average person to make counterfeit money," says Jack Johnson, a counterfeit specialist with the U.S. Secret Service office in Bay City, Mich. "Once upon a time, counterfeiters had to work long hours to make fake money, but now all you need is the right paper, a scanner and knowing how to hit the 'print' button."

Bureau of Engraving and Printing external affairs division manager Edward Sheehan says the 2003 bills are primarily being made to keep ahead of counterfeiters with state-of-the-art computers.

Hence, the introduction of the new $5 and $10 notes specially designed to counter technology tricks so prized by counterfeiters today.

Almost $32 million in counterfeit currency was passed nationwide in 1998, according to the U.S. Treasury. Although that's a tiny fraction of the $405 billion of real money in circulation, it's still a significant amount that costs everyone from retailers to consumers.

What happens if you get stuck with one?
If funny money winds up in your hands, it's not only worthless, it isn't even yours. It belongs to Uncle Sam and he will relieve you of it.

Most funny money will change hands in places where you spend a lot of time. Businesses that handle loads of cash, like large stores, mall shops, expensive specialty shops, gas stations and fast-food restaurants, are prime targets for phony bills.

Counterfeiters who may be in a rush to get rid of the last of their old fake bills like busy shopping sites for many reasons:

• Large volumes of money are being exchanged, often in a rush.
• Crowded stores put pressure on clerks to quickly ring up sales.
• Clerks may be less suspicious of bills in large denominations in these stores because they are not uncommon.

So beware, you may get caught between Scylla the counterfeiter and Charybdis the store clerk.

What do you do if you find yourself with counterfeit money? You have one choice and one choice only, says Johnson.

Write your initials and the date in the white border areas of the suspect bill, place it in an envelope and turn it in to your local police department or a U.S. Secret Service special agent. You can find a local Secret Service bureau in the field office listing on the U.S. Treasury Web site.

You can expect their agents to contact you about how you got the bill (if you remember) as they try to trace it.

But you do get a break of sorts. However much you have to hand over can be claimed as a tax deduction.

By the way, just FYI: Making your own money can cost you a hefty fine and a prison term of up to 15 years. And as far the men in black from the Secret Service are concerned, passing on a bill you know to be counterfeit is the same thing as making it at home.

How to ID a phony bill
With new bills here, now is a time to take a little extra care and look at the money you receive.

Compare a suspect note with a genuine note of the same denomination and series, paying attention to the quality of printing and paper characteristics. "Look for differences, not similarities," says Johnson.

It doesn't take a magnifying glass to note the imperfections on fake money. The U.S. Secret Service suggests comparing the following:

Related information: Fun facts about currency Check out the rates! More consumer banking news Checking/ATM information Definitions: Banking terms

-- Posted: May 24, 2000