As the Department of the Treasury, Federal Reserve and U.S. Secret Service unveil a newly designed $10 bill enhanced with improved security features, we explore the world of counterfeiting and how lawmakers manage to stay one step ahead. The federal government adopted various anti-counterfeiting techniques in creating a new $10 bill.
BRIAN NAYLOR, host: This morning at a ceremony on Ellis Island, the US government unveiled      the new 10-dollar bill.  It's more colorful and sports a youthful-looking      Alexander Hamilton, as well as an image of the Statue of Liberty and the      inscription `We the people.'  Like the redesigned 20- and 50-dollar      bills, the new 10-dollar bill is supposed to be super-safe and almost      impossible to counterfeit.</s>BRIAN NAYLOR, host: If you have questions about the new bill or about counterfeiting in the      United States, our number here in Washington is (800) 989-8255; that's      (800) 989-TALK.  And our e-mail address is totn@npr.org.</s>BRIAN NAYLOR, host: And for more on the Fed's latest efforts to thwart fake greenbacks, we      turn to Eugenia Foster(ph), the cash manager for the Federal Reserve.      She joins us by phone from New York.</s>BRIAN NAYLOR, host: Welcome.</s>Ms. EUGENIA FOSTER (Cash Manager, Federal Reserve): Thank you so much.</s>BRIAN NAYLOR, host: That's a great title:  cash manager for the Federal Reserve.</s>Ms. EUGENIA FOSTER (Cash Manager, Federal Reserve): It gets me a lot of good cocktail-party chatter.</s>BRIAN NAYLOR, host: Let me ask you about this new 10-dollar bill.  Is it--how is it      safer or more secure than the one that I've got in my wallet right now?</s>Ms. EUGENIA FOSTER (Cash Manager, Federal Reserve): Well, Brian, we've enhanced the features to make them safer      and easier for people to use.  What we're trying to do is to have      everyone be aware that if they use those features, they can protect      themselves from taking counterfeit notes.  So, for example, if you look      down on the right-hand corner and tilt your 10, we want people to look at      the fancy ink that's down there in the corner that changes color from      copper to green.  So that's a very sort of discreet and subtle feature      that people can use without, you know, wasting a lot of time verifying      their note.  They also, on this--if you've seen the image, we've enhanced      the watermark space by creating a frame in the image so that people will      know right where to look for the watermark, which is a portrait in the      paper that matches the engraved portrait of Alexander Hamilton that they      see in the center of the note.</s>Ms. EUGENIA FOSTER (Cash Manager, Federal Reserve): So they can look for those two features, or they can look for the threat      that's embedded in the note which, when they hold it up to the light,      there's a thin strip running down the note that says `USA 10.'  So we've      enhanced these features so that they'll be easy for people to use, and      hopefully will give them a good protection.</s>BRIAN NAYLOR, host: And so these were all in the current bill, but you've just made      them a little bit better in this one.</s>Ms. EUGENIA FOSTER (Cash Manager, Federal Reserve): We've made them, I think, more user-friendly.</s>BRIAN NAYLOR, host: Mm-hmm.  And when can we expect to see these new 10s in      circulation?</s>Ms. EUGENIA FOSTER (Cash Manager, Federal Reserve): We're going to look for them early in 2006.</s>BRIAN NAYLOR, host: Uh-huh.  And what happens to the old ones?</s>Ms. EUGENIA FOSTER (Cash Manager, Federal Reserve): Well, they'll continue circulating, because all--the      Treasury and the Federal Reserve have never recalled any currency design      that's out there, so all of them will remain valid as long as they're in      circulation. What usually happens is they'll--you'll continue to see some      of the older designs for about two years; that's generally how long they      last.  Eventually, we'll pull out the last few stragglers.  But at the      beginning of the process, for about two weeks, we put out nothing but the      new ones, so that people get used to seeing the new ones, and then as      time passes they'll both be in circulation together.</s>BRIAN NAYLOR, host: What's--let me ask you a little bit about the reason for this      change. Obviously, it's making it more user-friendly, but there's been a      problem, I guess, with counterfeiting the older 10-dollar bills.</s>Ms. EUGENIA FOSTER (Cash Manager, Federal Reserve): Well, the basic reason that we do this is actually to stay      ahead of emerging counterfeit threats.  So what we want to do is be      prepared for the things that we foresee on the horizon, particularly as      computer technology gets more sophisticated, because as you can imagine,      today, because PCs and all the kinds of graphical software are so      sophisticated that people are able to make copies of documents, and we      and to make sure that currency has the best features in there to protect      people from this threat.</s>BRIAN NAYLOR, host: Mm-hmm.  What's the scope of counterfeiting in the US?  How much      money are--is made each year?</s>Ms. EUGENIA FOSTER (Cash Manager, Federal Reserve): Well, last year, we--the Secret Service seized      about--actually, we found in circulation about $44 million in counterfeit      currency, which when you consider that there are $730 billion dollars of      US currency in circulation, it's a relatively small problem.  Now, of      course, it's a problem for anyone who accepts a counterfeit note because      they suffer a loss in that case.  So we consider every instance of      counterfeiting to be a problem.  But overall, in general economic terms,      it is not a significant crime.</s>BRIAN NAYLOR, host: And is it just--it's not just a crime, though, in the US; it's a      crime internationally.</s>Ms. EUGENIA FOSTER (Cash Manager, Federal Reserve): Indeed, and as much as about two-thirds of the value of US      currency circulates overseas, so we have a job of educating overseas      users as well as our US citizens who use our currency.</s>BRIAN NAYLOR, host: Eugenia Foster is the cash manager for the Federal Reserve.  She      joined us by phone from New York.</s>BRIAN NAYLOR, host: Thanks very much.</s>Ms. EUGENIA FOSTER (Cash Manager, Federal Reserve): Thank you.  I appreciate it.</s>BRIAN NAYLOR, host: You're listening to TALK OF THE NATION from NPR News.</s>BRIAN NAYLOR, host: Will these new security measures work?  Or is it only a matter of time      before the counterfeiters catch up to the feds?  We turn now to Wayne      Victor Dennis, a former counterfeiter and author of "The Counterfeit      Millionaire."  He joins us from our New York bureau.</s>BRIAN NAYLOR, host: Welcome to the program.</s>Mr. WAYNE VICTOR DENNIS (Author, "The Counterfeit Millionaire"): Hi.</s>BRIAN NAYLOR, host: Tell us a little bit about how you go about making fake money.      Is it--it's not an easy process, I guess; otherwise, everyone would do      it.</s>Mr. WAYNE VICTOR DENNIS (Author, "The Counterfeit Millionaire"): Yes.  It's quite a complicated process.  I basically taught      myself when I originally printed the $15 million I printed in 1992.  And      I agree with Eugenia about a lot of the responsibility does fall in the      hands of the person who accepts it, and that's why in the book I listed      quite a few of the security features of genuine currency, so that if      people who accept the money, especially, like, change people in Las Vegas      at all the casinos--if they would pay attention to the currency they      accept, they would be able to stop it and possibly catch the      counterfeiter him or herself.  And so...</s>BRIAN NAYLOR, host: Mm-hmm.  Catch them as they--or shortly after they pass the      money.</s>Mr. WAYNE VICTOR DENNIS (Author, "The Counterfeit Millionaire"): Either while they pass it or after they pass it.  They have      quite a bit of security at casinos, and there's time when I've passed      currency in even food courts and shopping malls, and the handler, the      person at the register, had scrutinized the bills on a few occasions, and      it worried me, and I left and didn't come back.  And eventually, if      people will check they money more thoroughly by going over the guidelines      that the Secret Service puts out and the Bureau of Printing and Engraving      puts out, and learn about the security features, they'll be able to stop      it before it even gets into circulation.  And that would probably thwart      quite a few counterfeiters from wanting to do it in the first place.</s>BRIAN NAYLOR, host: Mm-hmm.  I'm just wondering--do--does changing the bill, as the      Treasury is now doing with a new 10-dollar bill following--they put out      new 20s and 50s--does that increase the degree of difficulty for      counterfeiters, or is it only a matter of time before you catch on and      you figure out the tricks and are able to duplicate the new ones?</s>Mr. WAYNE VICTOR DENNIS (Author, "The Counterfeit Millionaire"): It certainly does help, and there's more than a dozen      security features on the genuine bills.  And I always go back to the      theory that whatever can be made by one person can be duplicated by      another.  There are some great technological advances in the new security      features; however, it just takes a little ingenuity and thought and      anyone can reproduce it. Probably the best security features right now      are the watermark and the color-shifting ink.  And...</s>BRIAN NAYLOR, host: Go ahead.  I'm sorry.</s>Mr. WAYNE VICTOR DENNIS (Author, "The Counterfeit Millionaire"): If people would learn more about that--it's so fast and easy      to check the watermarks, and I do it right at the bank and I say, `I'm      sorry to in--I hope I don't insult you, but I need to check my money,'      and I check it all the time.</s>BRIAN NAYLOR, host: Let's take a call now.  Ruby, you're on the line with us from      Hillsborough, California.  Thanks for calling TALK OF THE NATION.</s>RUBY (Caller): Yes.  I'm interested in something.  I lived down in San      Diego for nine years.  What happens if somebody does falsify these and      they go and they cash them over in, say, north or south Baja?</s>BRIAN NAYLOR, host: In other words, they'll take the money and move...</s>RUBY (Caller): In other words, what if they use states in Mexico?  They're      (unintelligible).</s>BRIAN NAYLOR, host: Yeah.</s>RUBY (Caller): And same thing would happen in Texas.  What happens--if an      American has a bank account over there, then that money is not good.</s>BRIAN NAYLOR, host: Right.</s>RUBY (Caller): Because the last person--if I remember right, the last person to      get a bill is the one that is stuck with it.</s>BRIAN NAYLOR, host: Wayne Victor Dennis, do you have any sense of what happens if      you--if a counterfeit note is passed overseas and who's responsible      outside the country?</s>Mr. WAYNE VICTOR DENNIS (Author, "The Counterfeit Millionaire"): I--from--I'd like to say from my research that the foreign      governments aren't so strict on counterfeiting as the US is.</s>RUBY (Caller): Oh.</s>Mr. WAYNE VICTOR DENNIS (Author, "The Counterfeit Millionaire"): Bogota, Colombia, right now produces some of the finest      counterfeits in the world, and they produce...</s>RUBY (Caller): That's right.</s>Mr. WAYNE VICTOR DENNIS (Author, "The Counterfeit Millionaire"): ...billions of dollars' worth.</s>RUBY (Caller): Yes, that's what's happening.</s>Mr. WAYNE VICTOR DENNIS (Author, "The Counterfeit Millionaire"): And so the government, if they really wanted to stop them,      they could raid pretty much every home in Bogota and find these      counterfeiters that are putting out the super notes, especially the 100s.      They're so good that they pass in and out of US banks continuously, and      no one catches them.  And you have to know all your security features      with--and go over them with magnifying glasses to find out if it's actual      genuine or counterfeit.</s>BRIAN NAYLOR, host: When you were in the business, how did it feel to use the fake      money that you printed, and what did you use it on?</s>Mr. WAYNE VICTOR DENNIS (Author, "The Counterfeit Millionaire"): Well, I would certainly say that every single bill that      you--that a counterfeiter would pass--it gives you butterflies in your      stomach, because you never know:  Is that the bill that's going to get      you caught?  And I would like to say that I only cashed them at fast-food      establishments, alcohol establishments and casinos, 'cause I believed      that the casinos didn't care if they hurt people's financial futures,      letting them drain out their ATMs and spend their whole paychecks      gambling, and the fast-food industry, I believe, peddles food that's not      that healthy, and then alcohol establishments who serve alcohol to people      who eventually end up ruining their life.  So I only passed it at those      particular establishments.</s>BRIAN NAYLOR, host: Well, thank you.</s>BRIAN NAYLOR, host: Wayne Victor Dennis is "The Counterfeit Millionaire."  He joined us from      the New York bureau.  Thanks for being with us.</s>BRIAN NAYLOR, host: This is TALK OF THE NATION from NPR News in Washington.  I'm Brian      Naylor.