No one security feature will ever give complete protection against counterfeiting but combining them can result in a note that becomes more difficult and time consuming to reproduce.
In an ongoing effort to minimize counterfeiting, most countries will redesign their notes fairly frequently, incorporating new security features made possible by advances in technology.
It is also very important that the features stand the test of time and every day wear and tear that currency encounters.
Paper Features: For each currency produced a corresponding paper is manufactured. Banknote paper is made from cotton pulp which gives it better durability than commercial papers and a very distinctive feel. Very often it is the initial feel of a counterfeit that urges someone to have a closer look at what they are holding. If bank note paper is held under ultra violet light it is dull compared to commercial papers.
Watermark: The watermark is one of the most obvious security features of a paper banknote. When held up to the light an image can be seen in the paper, usually a portrait similar to that printed on the note. The image of the watermark is caused by different thickness of paper, with light areas of the watermark being a result of less paper.
Threads: Threads are embedded within the paper fiber and can be completely invisible or have a star burst effect, where the thread appears to weave in and out of the paper when viewed from one side. However when held up to the light the thread will always appear as a solid line. Features can be built into the thread material themselves e.g micro printing on a transparent plastic thread or adding materials so they fluoresce under ultra violet light. The thread is a difficult feature to counterfeit but some counterfeiters have been known to print a thin grey line or a thin line of varnish in the area of the thread.
Plastic: A plastic substrate has been adopted by some countries as the chosen medium for their currency. Security features are built into the plastic is coating with an opaque white, leaving windows of transparency and pseudo watermarks are produced by printing additional designs in opaque white These features offer good protection from Color copier counterfeiting.
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