The invention relates to wireless communication technology and image processing, red light, purple light, laser banknote identification technology and identification method, banknote identification mobile terminal, the mobile terminal is equipped with a camera and a display screen, and is characterized in that it is also equipped with A red light emitter, a purple light emitter, a laser emitter and a receiver for banknote authenticating, the receiver is connected with the mobile terminal microprocessor. The counterfeit identification method of the banknote identification mobile terminal includes identifying the authenticity of the banknote: if the banknote is genuine, the result will be sent to the currency security management center through mobile terminal communication, and the banknote flow direction will be provided for the currency security management center; if the banknote is fake banknotes, stolen banknotes or known illegal banknotes, the banknote information will be sent to the Currency Security Management Center to update the counterfeit banknote database. On the basis of retaining the basic communication functions of the original mobile terminal, the invention can detect and identify counterfeit banknotes in circulation, is convenient to use, checks banknotes quickly, and curbs the circulation of counterfeit banknotes.