Finding counterfeited banknotes: the roles of vision and touch

Abstract

Central banks incorporate various security features in their banknotes to enable themselves, the general public, retailers and professional cash handlers to detect counterfeits. In two field experiments, we tested central bank counterfeit experts and non-experts (the general public) in their ability to detect counterfeited euro banknotes. We varied exposure duration and perceptual modality (sight, touch or both). The counterfeit banknotes were actual counterfeits taken out of circulation. Experiment 1, in which participants only viewed the banknotes, showed that experts did reasonably well in detecting counterfeits even when exposure duration was limited to 500 ms. Non-experts did not reach the criterion for decent performance, marked by d’ = 1.25, although they did perform above chance. In Experiment 2, participants could both see and touch the banknotes, which resulted in better performance especially with longer exposure durations. The main finding of the current study is that visual information mostly impacts the decision-making process during the first glance, whereas tactile information increasingly aids performance as it continues to be accrued over time. Implications for the design of security features of new banknotes are discussed.