The Secret Service is a law-enforcement agency of the United States federal government. It falls under the jurisdiction of the Department of the Treasury. It was created on July 5, 1865. The Secret Service investigates and makes arrests in cases of counterfeit currency and forgery. Counterfeit currency is money that has been copied or forged. Counterfeit currency is used fraudulently as real currency. Counterfeit money is very harmful to the economy. Increased currency in circulation can lead to inflation as well as to the devaluation of money. Using counterfeit money is committing fraud. Goods or services purchased with counterfeit money are, in fact, stolen.

CS Question #1: How is counterfeit currency harmful to the economy?

Paper money is the most common currency to be counterfeited. It is easier and less expensive to reproduce than coins. Also, paper currency denominations extend to higher values. There are several traits of real U.S. currency that are hard, if not impossible, to duplicate. Some are more recent than others. They include:

• distinct sharpness and fine lines
• ink thickness
• special paper with tiny blue and red silk fibers made only for the mint
• delicate border design created by a geometric lathe
• watermarks on some bills
• holograms on some bills

In 1867, the Secret Service's duties were extended to include investigating individuals committing fraud against the government. Examples of fraud against the government include mail theft, land fraud and smuggling. In 1895, Congress extended counterfeit laws to include stamps. In 1915, the Secret Service was charged with the task of investigating espionage in the United States.

Congress passed updated legislation in 1984 against credit and debit card fraud. The new law included identification document fraud. It also included computer fraud of a federal nature. Congress made these federal offenses. As such, they fell under the jurisdiction of the Secret Service.

The Secret Service also investigates and makes arrests regarding currency and securities of other nations. If U.S. currency is counterfeited abroad, individuals involved may be prosecuted as having committed a crime in the Unites States.

CS Question #3: What other kinds of fraud or counterfeit, other than paper-money counterfeit, is the Secret Service responsible for protecting against?

After the assassination of President William McKinley in 1901, the Secret Service's responsibilities extended to full-time protection of the president. Further laws have expanded this duty over the years. The Secret Service is now responsible for protecting:

• the president
• the vice president
• the president-elect
• the vice president-elect
• the president's immediate family while in office
• former presidents during their lifetime
• widows of presidents until death or remarriage
• minor children of former presidents until the age of 16
• diplomatic missions in the United States and its territories
• visiting heads of state and specified official guests

CS Question #4: Do you believe that this level of protection is necessary? Is it worth spending your tax dollars on?

Further Thought:

1. How many individuals or organizations do you think are successful in counterfeiting money?
2. Of the traits of U.S. paper currency, which do you think would be the hardest for a counterfeiter to duplicate?
3. In your opinion, which of the Secret Service's duties is most important? Explain your answer.