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Counterfeit detector pens used in grocery stores contain an iodine solution that reacts with the starch in wood-based paper to create a black stain. When the solution is applied to the fiber-based paper used in real bills, no discoloration occurs.
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Fun Fact: Counterfeit detector pens used in grocery stores contain an iodine solution that reacts with the starch in wood-based paper to create a black stain. When the solution is applied to the fiber-based paper used in real bills, no discoloration occurs.
Source
money.howstuffworks.com
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