The number of counterfeit notes seized increased by 24% in 2023. So how can you recognize a counterfeit note or coin? What to do if you are in possession of a counterfeit? We tell you everything!
467,000: this is the number of counterfeit euro notes that were withdrawn from circulation last year, according to the European Central Bank (ECB). This figure may seem significant even if the chances of recovering a counterfeit note are very low.
In recent years, however, the media, including MoneyVox, have reported the rise of a new type of fraud: movie money. Originally intended for the cinema industry, these counterfeit notes have left film sets to invade merchants’ cash registers.
What is the probability of coming across a counterfeit note?
The ECB, however, wants to be reassuring: compared to the 29.8 billion authentic banknotes currently in circulation, false denominations represent only a drop in the ocean of money. We thus count on average 16 counterfeits detected per million authentic notes.
It must be said that the ECB does not make the task of counterfeiters easy. Over the last few years, the institution has gradually replaced the banknotes in circulation with new denominations, equipped with new security mechanisms. Soberly named “Europe”, the new series was finalized in 2019, with the publication of the new 100 and 200 euro banknotes.
Only the 500 euro note was not renewed. Little used for everyday transactions, it was however suspected of facilitating money laundering, tax fraud and the financing of terrorism. So much so that the secret services nicknamed him “Bin Laden”.
How to recognize a counterfeit note?
Although at half mast, counterfeit note fraud remains a scourge. Especially for traders. Fortunately, the new generation of tickets includes numerous devices intended to prevent counterfeiting. To find out if your banknote is real or fake, the ECB recommends the TRI method (touch, look, tilt):
Touch the ticket. It is not enough to print a counterfeit note on conventional paper to obtain a convincing imitation. The paper of authentic banknotes has a very particular texture: firm and slightly crunchy. On the front, run your fingers over the borders of the note and you will discover a series of small lines printed in relief. The main motif and the large number indicating the value of the note are also embossed.
Watch the ticket. Hold up your ticket and inspect it for transparency. You should then see in the watermark the portrait of Europe, the value of the note, and its main motif. Also watch for the appearance of the security thread: a dark line which crosses the note from top to bottom and on which you can distinguish, in very small characters, the euro symbol and the value of the note. Finally, the value of the note is indicated at the top left, but only part of the numbers are visible on each side of the note. By observing the note through transparency, the two parts complement each other perfectly to form a single number.
Tilt the bill. Finally, real bank notes are equipped with a hologram whose reflections appear when you tilt the note. For small denominations, this hologram is located on the side band, while on large denominations you will find a silver holographic dot representing a portrait of Europe.
In the case of movie money, the operation is even simpler. In addition to the absence of the security mechanisms mentioned above, you just need to check for the presence of the notice “This is not legal. It’s to be used for motion props” written in blue letters in the margin of the ticket. Another characteristic sign: a false serial number, which is often the same (MB 66688880).
How to recognize a fake coin?
If the tickets are scrupulously identical from one European country to another, the coins have different sides specific to the countries of issue. There are, however, common characteristics. The reverse of the coin is systematically composed of the exchange value and a representation of Europe. On the 1, 2 and 5 cent coins, Europe’s place in the world is represented. For 10, 20 and 50 cent, 1 and 2 euro coins, a European Union card is present.
Other common traits: colors. The 1, 2 and 5 centime coins are copper red. Those of 10, 20 and 50 centimes are entirely yellow. And the 1 and 2 euro coins are two-tone.
What to do if you find a counterfeit note or currency?
If in doubt about the authenticity of a note (or coin), show it to your banker or to the Banque de France. If it is indeed a fake, it will be immediately removed from circulation. The Banque de France will give you a receipt but will not, however, give you an authentic note in exchange.
If, for example, you found yourself in possession of a counterfeit ticket after withdrawing from an ATM or counter, the liability of the bank branch may be engaged. Article 442-2 of the Penal Code provides that “the transport, putting into circulation or detention with a view to putting into circulation counterfeit or falsified monetary signs […] or irregularly made currency signs […] are punishable by ten years’ imprisonment and a fine of 150,000 euros. But, you must be able to prove that the fake actually comes from the agency.
Know thatit is prohibited to recirculate a note that you know is counterfeit. You may be held liable on the basis of article 442-7 of the Penal Code. “The fact, for the one who received the counterfeit or falsified monetary signs […] while considering them to be good, to put them back into circulation after having discovered the defects is punishable by 7,500 euros fine ”, states this legal article.
Consolation for a merchant finding himself with counterfeit notes in his cash register: he can deduct this shortfall from its accounting results (which therefore allows him to obtain a tax gesture). The receipt given by the Banque de France must be kept. It then serves as tax proof.
Counterfeit note detectors: a real solution?
Despite your efforts, do you still have doubts? Or maybe you simply don’t have time to check for yourself the authenticity of every clipping that passes through your hands? In this case, there are counterfeit note detectors. These can be very basic, like detector pens, whose transparent ink takes on a bright color when the note is a fake.
For professional use (if you are a merchant, for example), you can even go further by equipping yourself with a counterfeit banknote detector with a UV lamp, or even an automatic detector, which is faster and above all more reliable.