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Counterfeit money is currency produced without the legal sanction of a state or government, usually in a deliberate attempt to imitate that currency and so as to deceive its recipient. Producing or using
counterfeit To counterfeit means to imitate something authentic, with the intent to steal, destroy, or replace the original, for use in illegal transactions, or otherwise to deceive individuals into believing that the fake is of equal or greater value tha ...
money is a form of
fraud In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compen ...
or
forgery Forgery is a white-collar crime that generally refers to the false making or material alteration of a legal instrument with the specific intent to defraud anyone (other than themself). Tampering with a certain legal instrument may be forb ...
, and is illegal. The business of counterfeiting money is nearly as old as money itself: plated copies (known as Fourrées) have been found of Lydian coins, which are thought to be among the first Western coins. Before the introduction of
paper money A banknote—also called a bill (North American English), paper money, or simply a note—is a type of negotiable promissory note, made by a bank or other licensed authority, payable to the bearer on demand. Banknotes were originally issued ...
, the most prevalent method of counterfeiting involved mixing base metals with pure gold or silver. Another form of counterfeiting is the production of documents by legitimate printers in response to fraudulent instructions. During World War II, the Nazis forged British pounds and American dollars. Today some of the finest counterfeit banknotes are called '' Superdollars'' because of their high quality and imitation of the real US dollar. There has been significant counterfeiting of
Euro The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...
banknotes and coins since the launch of the currency in 2002, but considerably less than that of the US dollar. Some of the ill-effects that counterfeit money has on society include a reduction in the value of real money; and an increase in prices (
inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduct ...
) due to more money getting circulated in the economy—an unauthorized artificial increase in the
money supply In macroeconomics, the money supply (or money stock) refers to the total volume of currency held by the public at a particular point in time. There are several ways to define "money", but standard measures usually include currency in circu ...
; a decrease in the acceptability of paper money; and losses, when traders are not reimbursed for counterfeit money detected by banks, even if it is confiscated. Traditionally, anti-counterfeiting measures involved including fine detail with raised intaglio printing on bills which allows non-experts to easily spot forgeries. On coins, ''milled'' or ''reeded'' (marked with parallel grooves) edges are used to show that none of the valuable metal has been scraped off.


History

Counterfeiting is sufficiently prevalent throughout history that it has been called "the world's ''second''- oldest profession". Coinage of money began in the region of Lydia around 600 B.C. Before the introduction of
paper money A banknote—also called a bill (North American English), paper money, or simply a note—is a type of negotiable promissory note, made by a bank or other licensed authority, payable to the bearer on demand. Banknotes were originally issued ...
, the most prevalent method of counterfeiting involved mixing base metals with pure
gold Gold is a chemical element with the symbol Au (from la, aurum) and atomic number 79. This makes it one of the higher atomic number elements that occur naturally. It is a bright, slightly orange-yellow, dense, soft, malleable, and ductile ...
or
silver Silver is a chemical element with the symbol Ag (from the Latin ', derived from the Proto-Indo-European ''h₂erǵ'': "shiny" or "white") and atomic number 47. A soft, white, lustrous transition metal, it exhibits the highest electrical ...
. A common practice was to "shave" the edges of a coin. This is known as " clipping". Precious metals collected in this way could be used to produce counterfeit coinage. A fourrée is an ancient type of counterfeit coin, in which a base metal core has been plated with a precious metal to resemble its solid metal counterpart. When paper money was introduced in China in the 13th century, wood from mulberry trees was used to make money. To control access to the paper, guards were stationed around mulberry forests, while counterfeiters were punished by death. In the 13th century, Mastro Adamo was mentioned by
Dante Alighieri Dante Alighieri (; – 14 September 1321), probably baptized Durante di Alighiero degli Alighieri and often referred to as Dante (, ), was an Italian poet, writer and philosopher. His '' Divine Comedy'', originally called (modern Italian: ...
as a counterfeiter of the Florentine fiorino, punished with death by
hanging Hanging is the suspension of a person by a noose or ligature around the neck.Oxford English Dictionary, 2nd ed. Hanging as method of execution is unknown, as method of suicide from 1325. The ''Oxford English Dictionary'' states that hanging ...
. The
English English usually refers to: * English language * English people English may also refer to: Peoples, culture, and language * ''English'', an adjective for something of, from, or related to England ** English national ...
couple Thomas and Anne Rogers were convicted on 15 October 1690 for "Clipping 40 pieces of Silver". Thomas Rogers was hanged, drawn, and quartered while Anne Rogers was burnt alive. Evidence supplied by an informant led to the arrest of the last of the English Coiners "''King''" David Hartley, who was executed by hanging in 1770. The extreme forms of punishment were meted out for acts of
treason Treason is the crime of attacking a state authority to which one owes allegiance. This typically includes acts such as participating in a war against one's native country, attempting to overthrow its government, spying on its military, its diplo ...
against the
State State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * ''The State'' (newspaper), a daily newspaper in Columbia, South Carolina, United States * ''Our S ...
or Crown rather than a simple crime.In the late eighteenth and early nineteenth centuries, Irish immigrants to London were particularly associated with the spending (uttering) of counterfeit money, while locals were more likely to participate in the safer and more profitable forms of currency crime, which could take place behind locked doors. These include producing the false money and selling it wholesale. Similarly, in America, Colonial paper currency printed by
Benjamin Franklin Benjamin Franklin ( April 17, 1790) was an American polymath who was active as a writer, scientist, inventor, statesman, diplomat, printer, publisher, and political philosopher. Encyclopædia Britannica, Wood, 2021 Among the leading int ...
and others often bore the phrase "to counterfeit is death". Counterfeiting nevertheless became so prevalent by the early nineteenth century that contemporary accounts like those from author John Neal claimed that as much as half of the US currency in circulation was counterfeit. By the 1830s, American newspapers began listing instructions for identifying counterfeits. Because currency was issued by individual banks, there were approximately 5,400 types of counterfeit bills in the US by the 1860s. Nations have used counterfeiting as a means of warfare. The idea is to overflow the enemy's economy with fake banknotes so that the real value of the money plummets.
Great Britain Great Britain is an island in the North Atlantic Ocean off the northwest coast of continental Europe. With an area of , it is the largest of the British Isles, the largest European island and the ninth-largest island in the world. It ...
did this during the
American Revolutionary War The American Revolutionary War (April 19, 1775 – September 3, 1783), also known as the Revolutionary War or American War of Independence, was a major war of the American Revolution. Widely considered as the war that secured the independence of t ...
to reduce the value of the Continental Dollar. The counterfeiters for the British were known as "shovers", presumably for the ability to "shove" the fake currency into circulation. Two of the most well-known shovers for the British during the Revolutionary War were David Farnsworth and John Blair. They were caught with 10,000 dollars in counterfeits when arrested.
George Washington George Washington (February 22, 1732, 1799) was an American military officer, statesman, and Founding Father who served as the first president of the United States from 1789 to 1797. Appointed by the Continental Congress as commander of ...
took a personal interest in their case and even called for them to be tortured to discover further information. They were eventually hanged for their crimes. During the
American Civil War The American Civil War (April 12, 1861 – May 26, 1865; also known by Names of the American Civil War, other names) was a civil war in the United States. It was fought between the Union (American Civil War), Union ("the North") and t ...
, the Confederate States dollar was heavily counterfeited by private interests on the Union side, often without the sanction of the Union government in Washington. The Confederacy's access to modern printing technology was limited, while many Northern-made imitations were printed on high-quality banknote paper procured through extralegal means. As a result, counterfeit Southern notes were often equal or even superior in quality compared to genuine Confederate money. In 1834, counterfeit
copper Copper is a chemical element with the symbol Cu (from la, cuprum) and atomic number 29. It is a soft, malleable, and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a pink ...
coins manufactured in the United States were seized from several ships with American flags in
Brazil Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
. The practice appeared to end after.


Instances

A form of counterfeiting is the production of documents by legitimate printers in response to fraudulent instructions. An example of this is the Portuguese Bank Note Crisis of 1925, when the British banknote printers
Waterlow and Sons Waterlow and Sons Limited was a major worldwide engraver of currency, postage stamps, stocks and bond certificates based in London, Watford and Dunstable in England. The company was founded as a family business in 1810. It was acquired in 1961 ...
produced
Banco de Portugal The Banco de Portugal (English: Bank of Portugal) is the central bank of the Portuguese Republic. The bank was founded by royal charter in 1846, during the reign of Queen Maria II of Portugal, by a merger of the '' Banco de Lisboa'' (Bank of Lis ...
notes equivalent in value to 0.88% of the Portuguese nominal Gross Domestic Product, with identical serial numbers to existing banknotes, in response to a fraud perpetrated by Alves dos Reis. Similarly, in 1929 the issue of postage stamps celebrating the millennium of
Iceland Iceland ( is, Ísland; ) is a Nordic island country in the North Atlantic Ocean and in the Arctic Ocean. Iceland is the most sparsely populated country in Europe. Iceland's capital and largest city is Reykjavík, which (along with its ...
's parliament, the
Althing The Alþingi (''general meeting'' in Icelandic, , anglicised as ' or ') is the supreme national parliament of Iceland. It is one of the oldest surviving parliaments in the world. The Althing was founded in 930 at (" thing fields" or "assemb ...
, was compromised by the insertion of "1" on the print order, before the authorized value of stamps to be produced (see
Postage stamps and postal history of Iceland This is a survey of the postage stamps and postal history of Iceland. Regular mail service in Iceland was first established by a charter of 13 May 1776, and on 1 January 1873, Iceland issued its first postage stamps. The design was the same as for ...
). In December 1925 a high-profile counterfeit scandal came to light, when three people were arrested in the
Netherlands ) , anthem = ( en, "William of Nassau") , image_map = , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of the Netherlands , established_title = Before independence , established_date = Spanish Netherl ...
while attempting to disseminate forged French 1000-franc bills which had been produced in Hungary. Subsequent investigations uncovered evidence that plot had received widespread support in Hungarian and German nationalist circles including the patronage of high ranking military and civilian officials. Twenty-four of the conspirators were tried in Budapest in May 1926. Most received light sentences in what is believed to have been a deliberate cover up by Hungarian Prime Minister
István Bethlen Count István Bethlen de Bethlen (8 October 1874, Gernyeszeg – 5 October 1946, Moscow) was a Hungarian aristocrat and statesman and served as prime minister from 1921 to 1931. Early life The scion of an old Bethlen de Bethlen noble fa ...
. The affair facilitated the adoption of the International Convention for the Suppression of Counterfeiting Currency in April 1929 and formalized the role of the
International Criminal Police Commission The International Criminal Police Organization (ICPO; french: link=no, Organisation internationale de police criminelle), commonly known as Interpol ( , ), is an international organization that facilitates worldwide police cooperation and cri ...
. During
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the World War II by country, vast majority of the world's countries—including all of the great power ...
, the
Nazis Nazism ( ; german: Nazismus), the common name in English for National Socialism (german: Nationalsozialismus, ), is the far-right totalitarian political ideology and practices associated with Adolf Hitler and the Nazi Party (NSDAP) in N ...
attempted to implement a similar plan ( Operation Bernhard) against the
Allies An alliance is a relationship among people, groups, or states that have joined together for mutual benefit or to achieve some common purpose, whether or not explicit agreement has been worked out among them. Members of an alliance are called ...
. The Nazis took Jewish artists to the
Sachsenhausen concentration camp Sachsenhausen () or Sachsenhausen-Oranienburg was a German Nazi concentration camp in Oranienburg, Germany, used from 1936 until April 1945, shortly before the defeat of Nazi Germany in May later that year. It mainly held political prisoner ...
and forced them to forge British pounds and American dollars. The quality of the counterfeiting was very good, and it was almost impossible to distinguish between the real and fake bills. The Nazis were unable to carry out planned aerial drops of the counterfeits over Britain, so most notes were disposed of and not recovered until the 1950s. Today some of the finest counterfeit banknotes are called '' Superdollars'' because of their high quality, and likeness to the real US dollar. The sources of such supernotes are disputed, with
North Korea North Korea, officially the Democratic People's Republic of Korea (DPRK), is a country in East Asia. It constitutes the northern half of the Korean Peninsula and shares borders with China and Russia to the north, at the Yalu (Amnok) and T ...
being vocally accused by US authorities. The amount of
counterfeit United States currency Counterfeiting of the currency of the United States is widely attempted. According to the United States Department of Treasury, an estimated $70 million in counterfeit bills are in circulation, or approximately 1 note in counterfeits for ...
is estimated to be less than $3 per $10,000, with less than $3 per $100,000 being difficult to detect. There has been a rapid growth in the counterfeiting of
euro The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...
banknotes and coins since the launch of the currency in 2002. In 2003, 551,287 fake euro notes and 26,191 bogus euro coins were removed from EU circulation. In 2004, French police seized fake €10 and €20 notes worth a total of around €1.8 million from two laboratories and estimated that 145,000 notes had already entered circulation. In the early years of the 21st century, the
United States Secret Service The United States Secret Service (USSS or Secret Service) is a federal law enforcement agency under the Department of Homeland Security charged with conducting criminal investigations and protecting U.S. political leaders, their families, and ...
has noted a substantial reduction in the quantity of forged U.S. currency, as counterfeiters turn their attention towards the
euro The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...
. As a result of their rarity,
gold Gold is a chemical element with the symbol Au (from la, aurum) and atomic number 79. This makes it one of the higher atomic number elements that occur naturally. It is a bright, slightly orange-yellow, dense, soft, malleable, and ductile ...
and silver certificates have sometimes been erroneously flagged as counterfeits in the United States when they have, in fact, been genuine. Due to the fact that these banknotes carry significant numismatic value and are sought after by collectors, counterfeit examples have surfaced on eBay via unscrupulous sellers. A batch of counterfeit A$50 and A$100 notes was released into the Australian city of
Melbourne Melbourne ( ; Boonwurrung/ Woiwurrung: ''Narrm'' or ''Naarm'') is the capital and most populous city of the Australian state of Victoria, and the second-most populous city in both Australia and Oceania. Its name generally refers to a metro ...
in July 2013. As of July 12, 2013, 40 reports had been made between the northern suburbs of
Heidelberg Heidelberg (; Palatine German: ') is a city in the German state of Baden-Württemberg, situated on the river Neckar in south-west Germany. As of the 2016 census, its population was 159,914, of which roughly a quarter consisted of students ...
and Epping. Police spokespersons explained to the public in media reports that the currency notes were printed on paper (Australia introduced
polymer banknote Polymer banknotes are banknotes made from a synthetic polymer such as biaxially oriented polypropylene (BOPP). Such notes incorporate many security features not available in paper banknotes, including the use of metameric inks. Polymer banknot ...
s in 1988) and could be easily detected by scrunching up the note or tearing it. Additionally, the clear window within the notes was also an easy way to identify fake versions, as the "window appears to have been cut out with two clear plastic pieces stuck together with stars placed in the middle to replicate the
Southern Cross Crux () is a constellation of the southern sky that is centred on four bright stars in a cross-shaped asterism commonly known as the Southern Cross. It lies on the southern end of the Milky Way's visible band. The name ''Crux'' is Latin for ...
". Police also revealed that fake notes had been seized in June 2013 in Melbourne's eastern and western suburbs. According to the Australian RBA figures, during 2014–15, the number of counterfeit $50 currency detected in circulation has more than doubled from the previous year, and more than 33,000 fake notes were removed from circulation. The officials believe this likely a fraction of the number of fake currencies currently flooding through in Victoria and NSW states. On 31 May 2016, the
ACT police ACT Policing is the portfolio of the Australian Federal Police (AFP) responsible for providing policing services to the Australian Capital Territory (ACT). The Australian Capital Territory Police was an independent police force responsible for ...
have warned people to keep an eye out for fake $50 notes, which is circulating throughout
Canberra Canberra ( ) is the capital city of Australia. Founded following the federation of the colonies of Australia as the seat of government for the new nation, it is Australia's largest inland city and the eighth-largest city overall. The ci ...
in recent months. The officers have been called out to more than 35 businesses over the past two months in connection to counterfeit $50 notes.
Australian Federal Police The Australian Federal Police (AFP) is the national and principal federal law enforcement agency of the Australian Government with the unique role of investigating crime and protecting the national security of the Commonwealth of Australia. ...
have charged two persons alleging to have produced $16,465 notes of counterfeit currency and charged them with various offences under the Crimes (Currency) Act 1981. The police said that while Australian notes are hard to counterfeit, featuring many security features, they nonetheless urged people to take a close look each time they spend cash.


Effects on society

Some of the ill-effects that counterfeit money has on society include: # Companies are not being reimbursed for counterfeits. This has led to companies losing buying power. As such, there is a reduction in the value of ''real'' money. # Increase in prices (
inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduct ...
) due to more money getting circulated in the economy—an unauthorized artificial increase in the
money supply In macroeconomics, the money supply (or money stock) refers to the total volume of currency held by the public at a particular point in time. There are several ways to define "money", but standard measures usually include currency in circu ...
. # A decrease in the acceptability (satisfactoriness) of money—payees may demand electronic transfers of real money or payment in another currency (or even payment in precious metals such as gold). At the same time, in countries where paper money is a small fraction of the total money in circulation, the macroeconomic effects of counterfeiting of currency may not be significant. The microeconomic effects, such as confidence in the currency, however, may be large.


Anti-counterfeiting measures

Traditionally, anti-counterfeiting measures involved including fine detail with raised intaglio printing on bills which would allow non-experts to easily spot forgeries. On coins, ''milled'' or ''reeded'' (marked with parallel grooves) edges are used to show that none of the valuable metal has been scraped off. This detects the ''shaving'' or '' clipping'' (paring off) of the rim of the coin. However, it does not detect ''
sweating Perspiration, also known as sweating, is the production of fluids secreted by the sweat glands in the skin of mammals. Two types of sweat glands can be found in humans: eccrine glands and apocrine glands. The eccrine sweat glands are distri ...
'', shake coins in a bag, and collect the resulting dust. Since this technique removes a smaller amount, it is primarily used on the most valuable coins, such as gold. In early paper money in Colonial North America, one creative means of deterring counterfeiters was to print the impression of a
leaf A leaf ( : leaves) is any of the principal appendages of a vascular plant stem, usually borne laterally aboveground and specialized for photosynthesis. Leaves are collectively called foliage, as in "autumn foliage", while the leaves, ...
in the bill. Since the patterns found in a leaf were unique and complex, they were nearly impossible to reproduce. In the late twentieth century, advances in
computer A computer is a machine that can be programmed to carry out sequences of arithmetic or logical operations ( computation) automatically. Modern digital electronic computers can perform generic sets of operations known as programs. These prog ...
and
photocopy A photocopier (also called copier or copy machine, and formerly Xerox machine, the generic trademark) is a machine that makes copies of documents and other visual images onto paper or plastic film quickly and cheaply. Most modern photocopier ...
technology made it possible for people without sophisticated training to copy currency easily. In response, national engraving bureaus began to include new, more sophisticated anti-counterfeiting systems such as holograms, multi-colored bills, embedded devices such as strips, raised printing, microprinting,
watermark A watermark is an identifying image or pattern in paper that appears as various shades of lightness/darkness when viewed by transmitted light (or when viewed by reflected light, atop a dark background), caused by thickness or density variations ...
s, and color-shifting inks whose colors changed depending on the angle of the light, and the use of design features such as the "
EURion constellation The EURion constellation (also known as Omron rings or doughnuts) is a pattern of symbols incorporated into a number of secure documents such as banknotes and ownership title certificates designs worldwide since about 1996. It is added to help ...
" which disables modern photocopiers. Software programs such as
Adobe Photoshop Adobe Photoshop is a raster graphics editor developed and published by Adobe Inc. for Windows and macOS. It was originally created in 1988 by Thomas and John Knoll. Since then, the software has become the industry standard not only in rast ...
have been modified by their manufacturers to obstruct manipulation of scanned images of banknotes. There also exist patches to counteract these measures. Recently, there has been a discovery of new tests that could be used on U.S. Federal Reserve Notes to ensure that the bills are authentic. These tests are done using intrinsic fluorescence lifetime. This allows for the detection of counterfeit money because of the significance in difference of fluorescence lifetime when compared to authentic money. For U.S. currency, anti-counterfeiting milestones are as follows: * 1996 $100 bill gets a new design with a larger portrait * 1997 $50 bill gets a new design with a larger portrait * 1998 $20 bill gets a new design with a larger portrait * 2000 $10 bill and $5 bill get a new design with a larger portrait * 2003 $20 bill gets a new design with no oval around
Andrew Jackson Andrew Jackson (March 15, 1767 – June 8, 1845) was an American lawyer, planter, general, and statesman who served as the seventh president of the United States from 1829 to 1837. Before being elected to the presidency, he gained fame as ...
's portrait and more colors * 2004 $50 bill gets a new design with no oval around
Ulysses S. Grant Ulysses S. Grant (born Hiram Ulysses Grant ; April 27, 1822July 23, 1885) was an American military officer and politician who served as the 18th president of the United States from 1869 to 1877. As Commanding General, he led the Union A ...
's portrait and more colors * 2006 $10 bill gets a new design with no oval around
Alexander Hamilton Alexander Hamilton (January 11, 1755 or 1757July 12, 1804) was an American military officer, statesman, and Founding Father who served as the first United States secretary of the treasury from 1789 to 1795. Born out of wedlock in Charle ...
's portrait and more colors * 2008 $5 bill gets a new design with no oval around
Abraham Lincoln Abraham Lincoln ( ; February 12, 1809 – April 15, 1865) was an American lawyer, politician, and statesman who served as the 16th president of the United States from 1861 until his assassination in 1865. Lincoln led the nation throu ...
's portrait and more colors * 2010 $100 bill gets a new design with no oval around
Benjamin Franklin Benjamin Franklin ( April 17, 1790) was an American polymath who was active as a writer, scientist, inventor, statesman, diplomat, printer, publisher, and political philosopher. Encyclopædia Britannica, Wood, 2021 Among the leading int ...
's portrait and more colors; along with the inclusion of the new "3D security ribbon" The redesigned $100 bill was unveiled on April 21, 2010, and the Federal Reserve Board was to begin issuing the new bill on February 10, 2011, but the release was delayed until October 2013. The Treasury had made no plans to redesign the $5 bill using colors but recently reversed its decision after learning some counterfeiters were bleaching the ink off the bills and printing them as $100 bills. The new $10 bill (the design of which was revealed in late 2005) entered circulation on March 2, 2006. The $1 bill and $2 bill are seen by most counterfeiters as having too low a value to counterfeit, and so they have not been redesigned as frequently as higher denominations. In the 1980s, counterfeiting in the
Republic of Ireland Ireland ( ga, Éire ), also known as the Republic of Ireland (), is a country in north-western Europe consisting of 26 of the 32 counties of the island of Ireland. The capital and largest city is Dublin, on the eastern side of the island. ...
twice resulted in sudden changes in official documents: in November 1984, the £1 postage stamp, also used on savings cards for paying television licences and telephone bills, was invalidated and replaced by another design at a few days' notice, because of widespread counterfeiting. Later, the £20
Central Bank of Ireland The Central Bank of Ireland ( ga, Banc Ceannais na hÉireann) is Ireland's central bank, and as such part of the European System of Central Banks (ESCB). It is the country's financial services regulator for most categories of financial firms ...
Series B banknote was rapidly replaced because of what the Finance Minister described as "the involuntary privatization of banknote printing". In the 1990s, the portrait of Chairman
Mao Zedong Mao Zedong pronounced ; also Romanization of Chinese, romanised traditionally as Mao Tse-tung. (26 December 1893 – 9 September 1976), also known as Chairman Mao, was a Chinese communist revolutionary who was the List of national founde ...
was placed on the banknotes of the
People's Republic of China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's List of countries and dependencies by population, most populous country, with a Population of China, population exceeding 1.4 billion, slig ...
to combat counterfeiting, as he was recognised better than the generic designs on the
renminbi The renminbi (; symbol: ¥; ISO code: CNY; abbreviation: RMB) is the official currency of the People's Republic of China and one of the world's most traded currencies, ranking as the fifth most traded currency in the world as of April 202 ...
notes. In 1988 the
Reserve Bank of Australia The Reserve Bank of Australia (RBA) is Australia's central bank and banknote issuing authority. It has had this role since 14 January 1960, when the ''Reserve Bank Act 1959'' removed the central banking functions from the Commonwealth Bank. Th ...
released the world's first long-lasting and counterfeit-resistant polymer (plastic) banknotes with a special Bicentennial $10 note issue. After problems with this bill were discovered and addressed, in 1992, a problem-free $5 note was issued. In 1996 Australia became the first country to have a full series of circulating polymer banknotes. On 3 May 1999, the Reserve Bank of New Zealand started circulating polymer banknotes printed by Note Printing Australia Limited. The technology developed is now used in 24 countries. As of 2009, Note Printing Australia was printing polymer notes for 18 countries. The Swiss National Bank had a reserve series of notes for the
Swiss franc The Swiss franc is the currency and legal tender of Switzerland and Liechtenstein. It is also legal tender in the Italian exclave of Campione d'Italia which is surrounded by Swiss territory. The Swiss National Bank (SNB) issues banknotes and the ...
in case widespread counterfeiting were to take place; this was discontinued in the mid-1990's with the introduction of the eighth series of banknotes.


Penalties by country for creating counterfeit money


Notable counterfeiters

*
Peter Alston Peter Alston (after 1765 - February 8, 1804) was an American coin counterfeiting, counterfeiter, horse thief, highwayman, and river pirate of the late 18th and early 19th Centuries. He is believed to have been an associate of serial-killer, seria ...
was the late-18th-century and early-19th-century counterfeiter and river pirate, who is believed to be Little Harpe's associate and partner in the murder of notorious outlaw leader Samuel Mason in 1803 * Philip Alston was an 18th-century counterfeiter both before and after the American Revolution in Virginia and the Carolinas before the war, and later in Kentucky and Illinois afterward. *
Anatasios Arnaouti Anatasios Arnaouti (born 21 July 1967) is a criminal from Manchester, England, who led an ambitious forgery operation before being jailed in 2005. At the time of the arrest of Arnaouti and his accomplices, police seized over £2.5 million worth ...
, a British counterfeiter of more than £2.5 million in fake money, was sentenced in 2005. * Edward Bonney, an alleged counterfeiter in northern
Indiana Indiana () is a U.S. state in the Midwestern United States. It is the 38th-largest by area and the 17th-most populous of the 50 States. Its capital and largest city is Indianapolis. Indiana was admitted to the United States as the 19th ...
who escaped to Nauvoo, Illinois, was a bounty hunter and amateur detective who posed as a counterfeiter to apprehend the murderers of Colonel George Davenport and infiltrate the Midwestern
Banditti of the Prairie The Banditti of the Prairie, also known as The Banditti, Prairie Pirates, Prairie Bandits, and Pirates of the Prairie, in the U.S. states of Illinois, Indiana, and Ohio, and the Territory of Iowa, were a group of loose-knit outlaw gangs, durin ...
. *
Abel Buell Abel Buell (1742–1822), born in Killingworth, Connecticut, was a goldsmith, silversmith, jewelry designer, engraver, surveyor, printer, type manufacturer, mint master, textile miller, and counterfeiter in the American colonies. In 1784, Buell ...
, an American colonialist and republican who went from altering five-pound note engraving plates to publishing the first map of the new United States created by an American. *
Mary Butterworth Mary Peck Butterworth (July 27, 1686 – February 7, 1775) was a counterfeiter in colonial America. Biography Born to Joseph and Martha Peck in Rehoboth, Massachusetts, Mary married John Butterworth, son of a British captain in 1710. Mary alleged ...
, a counterfeiter in
colonial America The colonial history of the United States covers the history of European colonization of North America from the early 17th century until the incorporation of the Thirteen Colonies into the United States after the Revolutionary War. In the ...
. * William Chaloner, a British counterfeiter, was convicted by Sir Isaac Newton and hanged on 16 March 1699. * Mike DeBardeleben, a convicted kidnapper, rapist, and suspected serial killer, was sent to
prison A prison, also known as a jail, gaol (dated, standard English, Australian, and historically in Canada), penitentiary (American English and Canadian English), detention center (or detention centre outside the US), correction center, corre ...
for counterfeiting the $20 bill. * Alves dos Reis, who by the end of 1925 had managed to introduce escudo banknotes worth £1,007,963 at 1925 exchange rates into the Portuguese economy, which was equivalent to 0.88% of Portugal's nominal GDP at the time. * John Duff was a counterfeiter, hunter, and soldier who served in
George Rogers Clark George Rogers Clark (November 19, 1752 – February 13, 1818) was an American Surveying, surveyor, soldier, and militia officer from Virginia who became the highest-ranking American patriot military officer on the northwestern frontier duri ...
's campaign to capture the
Illinois country The Illinois Country (french: Pays des Illinois ; , i.e. the Illinois people)—sometimes referred to as Upper Louisiana (french: Haute-Louisiane ; es, Alta Luisiana)—was a vast region of New France claimed in the 1600s in what is n ...
, for the Patriot American side, during the Revolutionary War. * Eric "Klipping" V, the king of
Denmark ) , song = ( en, "King Christian stood by the lofty mast") , song_type = National and royal anthem , image_map = EU-Denmark.svg , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of Denmark , establish ...
(1259–1286). The king's nickname refers to "clipping" of the coin. * David Farnsworth was a British Loyalist American counterfeiter and spy in the
American Revolutionary War The American Revolutionary War (April 19, 1775 – September 3, 1783), also known as the Revolutionary War or American War of Independence, was a major war of the American Revolution. Widely considered as the war that secured the independence of t ...
. He was hanged for his crimes after
George Washington George Washington (February 22, 1732, 1799) was an American military officer, statesman, and Founding Father who served as the first president of the United States from 1789 to 1797. Appointed by the Continental Congress as commander of ...
had taken a personalised interest in his case. *
Francis Greenway Francis Howard Greenway (20 November 1777 – September 1837) was an English-born architect who was transported to Australia as a convict for the crime of forgery. In New South Wales he worked for the Governor, Lachlan Macquarie, as Australia' ...
was an English-born architect transported to Australia in 1814 as a convict for the crime of forgery, where he rose as a prominent planner of public buildings. He later posthumously became probably the only forger to be depicted on a banknote, the Australian $10. * "King" David Hartley was the leader of the Cragg Vale Coiners of rural 18th-century England. Producing fake gold coins, he was eventually captured and hanged at Tyburn near York on April 28, 1770, and buried in the village of Heptonstall, W Yorks. His brother, Isaac, escaped the authorities and lived until 1815. *
Thomas McAnea Thomas Charles McAnea (c.1950 – 2 August 2013), also known as ''Hologram Tam'', was a Scottish master counterfeiter, regarded as one of the most skillful in Europe with regard to banknote security holograms. Had they not been foiled by p ...
, also known as Hologram Tam, a Scottish master counterfeiter regarded as one of the most skillful in Europe with regard to banknote security holograms. * Emerich Juettner, documented in Mister 880, was possibly the longest uncaught counterfeiter in history. For ten or more years, he eluded government authorities while he printed and spent fake $1 bills in his New York neighborhood. * Catherine Murphy, convicted of coining in 1789 and was the last woman to suffer execution by burning in
England England is a country that is part of the United Kingdom. It shares land borders with Wales to its west and Scotland to its north. The Irish Sea lies northwest and the Celtic Sea to the southwest. It is separated from continental Europe ...
. * John A. Murrell, a near-legendary bandit, operating in the United States along the Mississippi River in the mid-nineteenth century. Convicted for his crimes in the Circuit Court of Madison County, Tennessee, Murrell was incarcerated in the Tennessee State Penitentiary, modeled after the Auburn penal system, from 1834 to 1844. * King Philip the Fair of France (1268–1314) caused riots and was known as "the counterfeiter king" for emitting coinage that was debased compared to the standards that had been prevalent during the half-century previous to his reign. *
Charles Price (Old Patch) Charles Price (died 1787), otherwise Old Patch, was a prolific English Forgery, forger and Charlatan, swindler. Price began his career when seventeen years old, covering his deceit within the occupations of "comedian, brewer, lottery-office ke ...
(died 1787), prolific English counterfeiter and swindler who defrauded the Bank of England of £200,000 *
Sturdivant Gang The Sturdivant Gang was a multi-generational, family gang of counterfeiters, whose criminal activities took place over a fifty-year period, from the 1780s, in Connecticut and Massachusetts, with one branch of the family going to ...
, a multi-generational group of
American American(s) may refer to: * American, something of, from, or related to the United States of America, commonly known as the "United States" or "America" ** Americans, citizens and nationals of the United States of America ** American ancestry, pe ...
counterfeiters whose criminal activities took place over a 50-year period from Colonial Connecticut to the Illinois frontier. *
Samuel C. Upham Samuel Curtis Upham (February 2, 1819 – June 29, 1885) was an American journalist, lyricist, merchant, bookkeeper, clerk, navy officer, prospector, and counterfeiter, during the later part of the 19th century, sometimes, known as "Honest S ...
, the first known counterfeiter of Confederate money during the
American Civil War The American Civil War (April 12, 1861 – May 26, 1865; also known by Names of the American Civil War, other names) was a civil war in the United States. It was fought between the Union (American Civil War), Union ("the North") and t ...
. His activities began or became known in early July 1862. *
Wesley Weber Wesley Wayne Weber is a Canadian who is considered one of the country's most prominent counterfeit banknote creators. Weber succeeded in counterfeiting the 1986 series Canadian hundred-dollar bill. They were the highest quality computer produce ...
, imprisoned in 2001 for counterfeiting the Canadian one-hundred-dollar bill. * Arthur Williams, imprisoned in 2007 for counterfeiting the United States one-hundred-dollar bill.


Money art

Money art is a subject related to counterfeiting that incorporates currency designs or themes. Some of these works of art are similar enough to actual bills that their legality is in question. While a counterfeit is made with deceptive intent, money art is not; however, the law may or may not differentiate between the two. J. ⁠ S. ⁠ G. ⁠ Boggs was an American artist best known for his hand-drawn, one-sided copies of US banknotes, which he sold for the face value of the note. Parodies of banknotes, often produced for humorous, satirical or promotional purposes, are called 'skit notes'. (The term 'skit note' has been used since around the mid-19th century. Prior to that, the term 'flash note' was used.) The street artist
Banksy Banksy is a pseudonymous England-based street artist, political activist and film director whose real name and identity remain unconfirmed and the subject of speculation. Active since the 1990s, his satirical street art and subversive epigram ...
is known for making 10- pound notes that feature
Princess Diana Diana, Princess of Wales (born Diana Frances Spencer; 1 July 1961 – 31 August 1997) was a member of the British royal family. She was the first wife of King Charles III (then Prince of Wales) and mother of Princes William and Harry. Her ac ...
's portrait in place of the Queen, while "Bank of England" is replaced by "Banksy of England". The artist's original intent was to throw them off a building, but after some of the notes were dropped at a festival, he discovered that they could pass for legal tender and changed his mind. As of 2012, Banksy is still in possession of all one hundred million pounds' worth of the currency. In 2006, American artist Jack Daws hired metalsmiths to make a mold of a 1970 U.S. penny and cast it in 18-karat gold. He then hired another metalsmith to copper-plate it, after which it looked like an ordinary penny. On March 28, 2007, Daws intentionally put the "penny" in circulation at
Los Angeles International Airport Los Angeles International Airport , commonly referred to as LAX (with each letter pronounced individually), is the primary international airport serving Los Angeles, California and its surrounding metropolitan area. LAX is located in the ...
(LAX). The sculpture was discovered in Brooklyn two-and-a-half years later by Jessica Reed, a graphic designer and coin collector, who noticed it while paying for groceries at a local store. Reed eventually communicated with Daws' Seattle art dealer, the Greg Kucera Gallery, and Daws confirmed that she had discovered the Counterfeit Penny sculpture.8. Lee, Jennifer. (November 4, 2009
Brooklyn Woman Finds Counterfeit Penny Made of Gold
''New York Times''.


Training money

In May 2017, Australian currency training notes (used in-house by Chinese banks in the training of bank tellers) were circulated briefly in
Darwin, Northern Territory Darwin ( ; Laragiya language, Larrakia: ) is the List of Australian capital cities, capital city of the Northern Territory, Australia. With an estimated population of 147,255 as of 2019, the city contains the majority of the residents of the spa ...
, with seven cases reported by the
Northern Territory Police The Northern Territory Police Force is the police body that has legal jurisdiction over the Northern Territory of Australia. This police service has 1,537 police members (as at 31 July 2019) made up of 79 senior sergeants, 228 sergeants, 839 con ...
of notes being offered and taken as real money. The $100 (
Australian dollar The Australian dollar ( sign: $; code: AUD) is the currency of Australia, including its external territories: Christmas Island, Cocos (Keeling) Islands, and Norfolk Island. It is officially used as currency by three independent Pacific Is ...
) notes had
Chinese language Chinese (, especially when referring to written Chinese) is a group of languages spoken natively by the ethnic Han Chinese majority and many minority ethnic groups in Greater China. About 1.3 billion people (or approximately 16% of the ...
characters printed on them but otherwise had the color and feel of real notes, and the Chinese characters can be disguised when the note is folded. They had been sold through
eBay eBay Inc. ( ) is an American multinational e-commerce company based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website. eBay was founded by Pierre Omidyar in 1995 and became ...
, with the disclaimer of not being for circulation. China also has an equivalent $50 (
U.S. dollar The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...
) "training money", that has previously appeared in the USA.Chinese bank's 'Australian training money' used as genuine $100 notes
Tom Maddocks,
ABC News Online ABC News, or ABC News and Current Affairs, is a public news service produced by the Australian Broadcasting Corporation. Broadcasting within Australia and the rest of the world, the service covers both local and world affairs. The division of ...
, 2017-05-09


See also

* 3D printed firearm *
Copyright infringement Copyright infringement (at times referred to as piracy) is the use of works protected by copyright without permission for a usage where such permission is required, thereby infringing certain exclusive rights granted to the copyright holder, ...
* Counterfeit banknote detection pen *
Federal Bureau of Investigation The Federal Bureau of Investigation (FBI) is the domestic intelligence and security service of the United States and its principal federal law enforcement agency. Operating under the jurisdiction of the United States Department of Justice ...
* International Convention for the Suppression of Counterfeiting Currency *
Money laundering Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdicti ...
*
Organized crime Organized crime (or organised crime) is a category of transnational, national, or local groupings of highly centralized enterprises run by criminals to engage in illegal activity, most commonly for profit. While organized crime is generally th ...
*
Russian mafia Russian organized crime or Russian mafia (, ), otherwise known as Bratva (), is a collective of various organized crime elements originating in the former Soviet Union. The initialism OPG is Organized Criminal (''prestupnaya'' in Russian) ...
*
Triad (organized crime) A triad ( zh , t=三合會 , s=三合会 , cy=sāam hahp wúi , j=saam1 hap6 wui6‑2 , hp=sān hé huì , first=t,j ) is a Chinese transnational organized crime syndicate based in Greater China and has outposts in various countries with signif ...
*
Money Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money ar ...
*
Digital currency Digital currency (digital money, electronic money or electronic currency) is any currency, money, or money-like asset that is primarily managed, stored or exchanged on digital computer systems, especially over the internet. Types of digital cu ...
*
World currency In international finance, a world currency, supranational currency, or global currency is a currency that would be transacted internationally, with no set borders. History First European Banknotes (17th century) The first European banknotes we ...


References


External links

{{Authority control Numismatics Deception