A product authentication system includes a carrier for receiving paper currency. The currency bears a unique serial number. The carrier is attached to a product the authenticity of which may need to be verified. The carrier can serve as a hang tag attached to various products, such as designer clothing, shoes, or watches. The carrier is preferably fully transparent to expose the currency embedded within it and to expose the unique serial number. A verification system allows a user, such as a consumer, to enter alphanumeric characters representing the serial number of the currency and includes a data base containing an inventory of serial numbers representing legitimate products to which carriers with unique articles of currency have been attached. The alphanumeric characters are compared with the serial numbers contained in the data base and an output is provided for indicating the authenticity of a product only when the entered alphanumeric characters correspond to a serial number stored in the data base. Data entry may be performed at a consumer station that includes a keyboard and may be a stand alone unit or may include communications for linking the consumer station to at least one remote authentication center that may service numerous consumer stations over any suitable communication link, as such as the Internet. The consumer station may be in the form of a kiosk or may be a portable hand-held device with Internet access. Preferably, the carrier further incorporates a security tag for providing both anti-theft and authentication features.

 
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