The invention provides a bill identification device and method based on the characteristics of a special element excited by ultraviolet light, so as to identify and detect the authenticity of a bill. Graphic code information painted by the special element is arranged on the bill. The bill identification device comprises a transmitter which is used for transmitting ultraviolet light wave to a part of the bill coated with the graphic code information, a sensor which is used for receiving the ultraviolet light wave reflected by the graphic code information, a controller which is connected with the transmitter and an sensor to control the transmitter to transmit the ultraviolet light wave and carry out characteristic analysis on the spectral signal of the ultraviolet light wave received by the sensor to determine the authenticity of the bill, a communication unit and a printing unit. According to the invention, the identification of the authenticity of the bill is not the identification of the appearance of the bill but the identification of the security material of the bill, which improves the accuracy and speed of the authenticity identification of the bill.