A system and method for automatically detecting the presence of a perforation, tear, or a transparent window security feature in a bank note. The system includes an optical detection device, and an ultrasonic detection device, and a conveyance device for transporting the bank note along a defined path proximate the detection devices. Each detection device comprises a plurality of optical transmitters and corresponding optical receivers that bracket the note path. A computing device is also provided to determine from the output of the optical detection device the presence of an optical abnormality in the bank note; to determine from the output of the ultrasonic detection device the presence of an ultrasonic abnormality in the bank note; and to determine the presence of a perforation, tear, or transparent window feature based upon the results of the optical abnormality determination or the ultrasonic abnormality determination.