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UV Code
UV Code is used on many every-day items such as credit cards, driver's license, casino chips, money and other documents. You would be surprised how many items have it. The UV code is a key feature with banks, when currency is run through a currency counter it is checked for the UV code and placement of the security strip position.
TIP: There are UV marking pens you can buy that you can mark items with that will fluoresce under black light. These are good for marking your name, etc in case of theft or other reasons.
Watermarking
Watermarking is a very old process for marking paper during the production of the paper. The paper is made thick and thin to produce images or text when held in front of a light.
Intaglio Printing
In normal printing ink is spread on the raised surface of a printing plate and the plate contacts the paper leaving a 'print' much like a rubber stamp. In the intaglio process the ink is spread into the groves of the plate and the ink is wiped from the raised surfaces. The plate then contacts the paper and a tremendous force is applied forcing the paper into the grooved areas where it contacts the ink. This process gives a 'feel' to it making the print feel raised.
Security strips
Some currencies use fine silver foil embedded in the paper during the production. The United States uses a polymer strip printed with silver text with "USA" and the numerical as well as the text denomination. Each denomination strip has a different UV color when in the presence of a black light. Photocopying or scanning will not reproduce this effect. Below is a security strip that has been removed from a $10 bill, the silver is reflective and hard to scan.
Micro-printing
All modern U.S. banknotes feature microprint which is printing so small that it can barely be distinguished with the naked eye. As such, most people don't ever realize it is there. Upon inspection of a crisp uncirculated note with a magnifying glass, you will be able to see incredibly small printing designed to foil counterfeiters. There is currently no commonly available machinery or equipment (including computer scanners/printers or copying machines) capable of reproducing micro-printing.
Silk threads
Silk threads colored red and blue are mixed with the linen and cotton pulp during the paper making process. These are randomly scattered throughout the note.(Can be seen in the Micro-printing image above)
Special Ink
The 1996 series of U.S. banknotes feature a durable color shifting ink in one set of numbers which changes color from metallic green to black depending on the angle you view it from. I believe this is the first set of banknotes ($20, $50, $100) to feature color shifting ink because previous types of ink were not durable enough to be used on banknotes.
Special paper
The paper used has special content including special threads. The particular paper is the Crane Company and they do not sell the paper to anyone else. They have been the only supplier in history for all US currency.
Special Color
Because color copiers have become so good, very high quality color copiers are specially programmed not to duplicate the particular color of US currency. These sorts of copiers also print a special tiny code on each sheet that enables tracing back to the particular serial number of the printer.
Magnetic Ink
US currency includes special ink that has magnetic properties.
Other countries use barcodes, holograms, as well as other devices.
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