Your $20 Bill Is Counterfeit If You Spot This Red Flag

There are more counterfeit bills out there than many people realize. While no one wants to ever receive fake money, it's possible to be a victim of this scam if you don't know what to look for. A Federal Reserve research paper published in 2025 revealed the total stock of counterfeit U.S. currency in circulation in 2023 was likely around $15 million, meaning about one bill in every 80,000 is a counterfeit. It may not be among the most popular money scams to watch out for, but with how many cash transactions people do every day, the odds of this happening are higher than you think.

Unlike $100 bills, which have seen an 85% decline in counterfeits since 1996 (per the Federal Reserve), $20 bills aren't as scrutinized, meaning they can more easily fly under the radar and end up in your wallet. One of the best ways to catch a fake $20 is by checking its serial number. Every note has two serials: one at the top left and the other at the bottom right. These numbers must match in characters, spacing, and alignment. The first letter should match the series year on the bill, and the second prefix letter should correspond to the Federal Reserve indicator code under the top-left serial number on the bill. Mismatched letters, sloppy printing, or worse, two bills with the same serial numbers are surefire signs a counterfeit. The only time the same one might be used twice would be replacement notes, which is what the star at the end of a bill's serial number means. This is unlikely, though, as replacements are only issued when the original is removed from circulation.

The serial number method works better when someone hands you multiple bills, since you can confirm the number across bills. However, in cases where you receive only one bill that you suspect is fake, you could try the watermark test. It's the popular method where you see people hold up bills to the light to inspect them.

Generally, you can use any of the many hidden symbols on dollar bills to confirm their authenticity, but the watermark is especially difficult to duplicate. On a genuine $20 made in 1996 and after, you'll see a faint image of Andrew Jackson's portrait appear to the right of the printed one when the bill is held up to the light. This image is visible from both sides of the note because it's built into the paper itself and not just printed on the surface, which makes it extremely difficult for counterfeiters to recreate accurately. If the watermark looks off-center, is missing altogether, or shows a different face, that's a strong indicator the bill isn't real.

While holding the bill to the light, you can also do a security thread check. Every $20 bill has a thin vertical strip embedded in the paper that runs from top to bottom, slightly to the left of the portrait. When the bill is up to the light, you should see the words "USA TWENTY" and a small flag repeating along the strip. This security thread also glows green under UV light.

Confirming the serial number and checking the bill under the light should generally be good enough to avoid counterfeits. But if you're still unsure or having trouble visually inspecting the bills, let your sense of touch guide you. Genuine U.S. currency is printed on a unique cotton-linen blend with tiny red and blue security fibers embedded throughout, with a distinct rough texture you won't find on standard paper. Real dollar bills don't feel too smooth or papery.

Aside from the overall texture, pay close attention to the raised printing on the note. On an authentic $20 bill, areas such as Andrew Jackson's portrait, the Federal Reserve seal, and the words "United States of America" will feel slightly rough or embossed due to the intaglio printing process. This raised ink effect is a deliberate feature that counterfeiters using digital printers or standard presses usually fail to replicate, leaving their notes feeling flatter than authentic ones.

Another test is to inspect the large numeral "20" printed on the bottom right corner of the front side. On real notes, this number changes color from copper to green when tilted. You can also give the bill a small squeeze to see how much it resists crumpling; the cotton-linen blend of dollar notes should hold up better than ordinary paper.