A method of identifying the counterfeit by recognizing the images of national emblem was studied.First,we used template matching to position the outer circle of national emblem in binary images.Then we gained two identifying areas by the relative position from the circle.The texture character of two identifying areas is clear.At last,we used co-occurrence matrix method on the two areas to identify.The experiment results showed,the contrast can reveal the clarity of grid of nation emblem images.So using the contrast could be better to distinguish between the genuine and the conterfeit.The recognition rate is up to 94%.This method is effective and can be used in the field of identifying the paper currency.