Issue date: Sept. 18-20, 1998
Can you spot a counterfeit?
In this article:
Q&A with Treasury Secretary Robert Rubin
The look: How the new $20 bill foils counterfeiters
How other countries combat counterfeiting
Safer and smarter investing
 HEN WAS THE
last time you looked -- really looked -- at your money? Treasury Secretary Robert
Rubin says we aren't paying enough attention. Counterfeiting is on the rise (there
were 2,436 arrests last year, 31 percent more than in 1995). This week, a new,
supposedly counterfeit-proof $20 bill goes into circulation. I spoke with Rubin last
month about the changes, the first significant alterations to the $20 since 1928.
Q: What should you do if you think you have a counterfeit bill? Don't put
yourself in danger. Don't return the bill to the passer. Note as much descriptive
information as possible about the passer. Then call the police. Q: A Treasury
spokeswoman recently said that the advances in computer technology and ink-jet
printing make counterfeiting simple. Is that true? Digital imaging technology can
be used to reproduce currency. It's a new problem, and this currency is designed to
deal with that. It's very difficult, if not impossible, for technology to reproduce
the watermark, security thread and this feature in the number 20 that changes color
(see below). So whoever gets a $20 bill [should] just take one moment to check
for the watermark, the security thread, if the 20 changes color. They can protect
themselves and the country. Q: Isn't "protecting the country" a big burden to
put on someone who's just going to the grocery store? Not really. Less than
1/100th of 1 percent of our currency right now is counterfeit, but it is very
important to protect the integrity of our currency. And what we can all do, as
citizens, is take one moment when we have a bill and hold it up to the light.
Q: Do you see a time when this won't be a problem? A cashless society, perhaps? I think we are headed toward a society where more and more commerce is conducted
electronically, and less and less with cash. And that will create a whole new set of
issues.
Go to top
How the new $20 bill, out this week, foils counterfeiters
Like the new $100 and $50 bills already in circulation, the $20 has been redesigned with
features that make counterfeiting extremely difficult, even with color copiers
and laser printers.
 - Security thread: The words "USA TWENTY" and a flag can
be seen on the thread when viewed against a light. The thread glows green under
ultraviolet light.
- Microprinting: Visible with a magnifying glass,
"USA 20" is repeated inside the numeral 20 in the bottom left corner. "The
United States of America" is printed repeatedly on the oval frame of Jackson's
portrait.
- Larger, off-center portrait: More detail in the image of
Andrew Jackson makes a fake easier to spot.
- Fine-line printing: Fine lines behind Jackson's portrait and the White House picture on the reverse are difficult to duplicate.
- Color-shifting ink: The numeral 20 in the bottom right
corner looks green when viewed straight on, but black at an angle.
- Watermark: A duplicate image of Jackson is visible when held up to a
light but cannot be photocopied.
Go to top
How other countries combat counterfeiting
Canada. Bills $20 and higher contain metallic gold squares in the upper
left corner.
Australia. Bills introduced in 1992 are made of a plastic
polymer with transparent windows.
Britain. Raised surfaces have 24 colors and "secret messages" that are changed often.
European Community. A number of advanced security features are designed to make the
new "Euro" currency (debuting in 2002) the world's most counterfeit-proof.
Go to top
Safer than stocks, smarter than a savings account: 3 alternatives
 f you're
braving the stock market's roller-coaster ride, you probably have realized that
stocks are no place for short-term money. Stuff those funds in a savings account
earning 2 percent interest and you lose money after taxes and inflation. But there
are more attractive alternatives: Money market accounts. The average taxable money market account yielded just 2.48 percent in
mid-August, but you can do better. The account at Bluebonnet Savings in Texas
(1-800-892-6151) yields 5.5 percent but requires a $5,000 minimum deposit. Atlanta
Internet Bank (1-888-256-6932) also is consistently at the top of the rankings, with
5.35 percent and a minimum of just $100. Money market funds. Unlike money
market accounts, these lack deposit insurance. But in return you get better
performance. The average taxable fund was yielding 5.02 percent in late August. Two
favorites: Vanguard MMR Prime Portfolio (effective yield 5.43 percent) and the
tax-free Vanguard Muni Bond, effective yield 3.27 percent (1-800-662-7447). Bonds: In August, the Treasury cut the minimum required investment on Treasury
bills (T-bills) and two-year Treasury notes to $1,000. Look into the Treasury Direct
program, which lets you purchase government securities directly online
(www.publicdebt.treas.gov), avoiding a brokerage commission. With the recent yield on
6-month T-bills at 5.12 percent, you don't want to give up anything in sales charges.
Go to top
Contributing Editor Jean Sherman Chatzky, a "Money Magazine" Editor, wrote "The Rich and Famous Money Book." She is seen on NBC's "Today Show" and MSNBC.
|
