Banknote verification relies on vision, feel and a single second

Central banks incorporate various security features in their banknotes to enable the general public, retailers, professional cash handlers and central banks to detect counterfeits. In this study we conducted two field experiments to test the extent to which euro banknotes can be authenticated as a function of exposure time and perceptual modality. In addition we investigated if these effects are moderated by expertise. In both experiments, the counterfeit banknotes were actual counterfeits taken out of circulation.

Keywords: attention, decision-making, change blindness, gist, sight, touch, authentication, banknotes, counterfeits
JEL codes E40; E41; E50; E58

Working paper no. 680