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Currency detectors verify the legal status and type of money inserted, identifying counterfeit bills and distinguishing one type of currency from another. They use various tests, such as magnetic ink or security features, and are used in vending machines, ATMs, and coin sorters. Counterfeiters are constantly devising new ways to bypass these systems, making improving detection a priority.
A currency detector is a device used to verify the legal status and type of money inserted into the detector. Currency detectors are used to identify counterfeit bills and to distinguish one type of currency from another. A currency detector can be used on vending or gambling machines, coin sorting or bill changers, and ATMs.
In terms of counterfeiting, a currency detector can identify real bills from fake ones by testing different components once the bills have been inserted. For example, some currencies use magnetic ink that resonates at a specific frequency and can be tested with the use of a magnetic head built into the currency detector. A very simple currency detector device is a pen filled with an iodine solution that does not react with the material used in real bills but stains the counterfeit bills due to a different composition of the material.
Modern currency detectors aimed at uncovering counterfeit bills take advantage of built-in security features intentionally placed in real bills, many of which are extremely difficult to replicate. Many modern machines and devices also use multiple tests to try to outwit sly scammers, such as built-in security tests and photoelectric sensors that measure the size of bills, to ensure a complete and valid bill is entered.
Currency detectors intended for use with coins are typically a bit simpler and rely on the fact that most currencies use very distinct sizes, shapes, and materials for different coins. A coin sorter or vending machine that accepts change usually detects currency based on its size, shape, or weight. Some more advanced models measure the magnetism or composition of the coin. Because paper bills are generally of the same weight, size, and composition, bill sorters often rely on magnetic strips embedded in the fabric of the bill to distinguish one denomination from another.
Currency detector technology is constantly evolving as counterfeiters devise ever more elaborate ways to bypass security systems. Some experts blame the availability of image manipulation software and high-quality printers for greatly increasing the potential for counterfeiting, making improving detection systems a priority for many countries. Unfortunately, counterfeit money can never be put into contact with a currency detector and is instead often used for cash transactions with merchants and sellers who lack the means to use a currency detector.
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