There are nine distinctive features on the new $20 bill:

- Raised Ink: This feature appears on the large number that depicts the denomination (in the case a “20” on the left side of the bill), on the shoulder of the portrait of Queen Elizabeth II and also on the words “Bank Of Canada/Banque du Canada” which appear near the transparent window.

- Transparent Window: Like the $100 and $50 bills, a large transparent window is present on the right side of the bill. The window contains a metallic portrait of both the Queen and of a building.

- Metallic Portrait: The metallic portrait featured in the transparent window identically matches the large portrait seen on the left side of the bill.

- Metallic Building: The clock tower building in the transparent window changes colour when the note is titled.

- Small Numbers: A series of small numbers also appears in the transparent window. These numbers correspond to the value of the note and some of them appear in reverse.

- Transparent Text: Also in the transparent window, see-through lettering of the word “Canada” is visible and feels slightly raised.

- Maple Leaf Border: A series of maple leafs surrounding the right side of the transparent window also cross over into the clear part, noting visible changes in the design.

- Frosted Maple Leaf Window: A frosted maple leaf appears on the left side of the note and is surrounded by a transparent outline.

- Hidden Numbers: A series of small numbers that match the bill’s denomination appear within the frosted window. These numbers can only be seen by using a small light like an incandescent bulb or a pot light.

The $20 denomination is the most circulated bill in Canada, and will be introduced into circulation later this year. The last two notes in the series – the $10 and $5 bills – will be released before the end of 2013.

SOURCE:
Bank of Canada: “Polymer Series – Security”

In the world of specialty paper, RFID tags or chips are typically associated with electronic passports. Containing a carrier’s biometric information, the RFID chips facilitate faster and more secure passage at border crossings.

Researchers at the King Abdullah University of Science and Technology (KAUST) say banknotes outfitted with RFID tags represent the next wave in secure banknote technology.

“Current anti-counterfeiting measures are limited to features like holograms, fluorescent inks, special threads, watermarks, raised printing, etc,” says lead researcher Husam Alshareef. “But most of these features can be replicated. The next generation of security features has to have some sort of electronic circuitry such as RFID tags.”

The biggest challenge for Alshareef and his team was figuring out how to incorporate the solid RFIDs into the flexible surface of a banknote.

To solve this problem, the KAUST research team created an RFID tag based on ferroelectric organic polymers, which possess high polarization that is reversed when an external field is applied to create the on/off switch. Both tags were built up on a smooth layer of polydimethylsiloxane that covers the rough banknote surface and absorbs bending movements to protect the RFID layers above from strain, according an article published by the Royal Society of Chemistry (RSC).

Alshareef says despite these advancements, a major challenge remains that “RFIDs cannot be incorporated into the ink used to print banknotes because the devices need to be patterned and produced individually.”

George Whitesides, a researcher who works on paper-based microfluid devices at Harvard University, says the physical wear and tear on paper indeed makes a project like this difficult but is confident the outcomes could prove to be a step in the right direction for banknote security.

‘The development of a new method of putting ferromagnetic elements on paper is certainly interesting and has the potential to be used in a number of memory applications and anti-counterfeiting schemes,’ he told the RSC.

SOURCE:
Royal Society of Chemistry: “Tuning Into A Radio Solution To Money Forgers”

According to an article published by Gizmodo, “physicists Christopher Fuller and Antao Chen found that ordinary handheld metal detectors were ale to recognize magnetic ink in a single dollar bill from just over an inch away. As multiple bills were stacked, the size of their magnetic field also increased, allowing the researchers to not only detect them from a greater distance, but also count how many there were.”

Magnetic ink in currency typically allows vending machines to verify the authenticity of banknotes.

The discovery is not without its challenges. Currently, metal detectors cannot detect the dollar value of stacks because each denomination uses the same amount of magnetic ink. According to the research, metal detectors would have to be vastly improved so they could automatically differentiate the magnetic ink from other sources.

Fuller and Chen are scheduled to present their work at an upcoming Defense, Security and Sensing conference in Baltimore, Maryland.

SOURCE:
Gizmodo: “Crime-Fighting Metal Detectors Could Count Stacks Of Cash And Foil Smugglers”

Money and its history dates back thousands of years.  With advanced technology the Czech National Bank has developed a new phone app helps people check the legitimacy of Czech banknotes and coins.

The Czech National Bank spokesman Marek Petrus said “The application allows you to view bank notes and coins of the Czech currency in detail on their mobile devices. They can familiarise themselves with the protective elements of various bank notes and they can also compare the banknotes they have in their own pocket.”

The app can tell if the security features of each individual koruna banknotes are legitimate by using the camera on an iPhone, iPod, or iPad. The app is free to download and is available in Czech and English, includes detailed photographs and descriptions of all valid Czech banknotes and coins.

“One can use the so called ‘look through’ feature and see how the various bank notes should look like,” said Petrus while using the new app on the iPad.

The Czech National Bank hopes that cash will remain king, by having others around the world copying this innovative idea. The internal backlight on the iPhone accelerometer which detects the device tilting allows the user to examine the notes in detail.

SOURCES:

The Globe and Mail Video: ‘Czech Bank app checks for counterfeit cash’

Reuters: ‘Czech Bank app checks for counterfeit cash’

On Monday at the Glasgow Sheriff Court, Ian Beaton admitted to creating the fake notes.

After police searched his car near Aberdeen and found £2000 of seized counterfeit notes with his fingerprints on the envelope the 44- year-old was arrested.

Around £28,000 of fake notes were recovered from his Shawlands home in Glasgow.

Between July 30, 2010, and January 22, 2011 Beaton pled guilty to making a quantity of Royal Bank of Scotland and Bank of Scotland notes.  He also admitted to having the materials needed to make the fake cash including a computer, printers, paper and guillotines for that purpose.

Procurator fiscal depute Mark Allan told the court that “No one was present within at that time, a search commenced, counterfeit money in particular Royal Bank of Scotland £20 and £10 notes and Bank of Scotland £20 notes were recovered in various locations within the flat.”

He also told the courts that police found paper, hard drives and disks from the computer’s internal memory as well as ink and other objects used to make the counterfeiting money.

“Towards the conclusion of the search which was by that stage 4pm, the accused arrived at the flat and identified himself as residing there. He was detained and taken to Cathcart Police Office, processed there, and interviewed there and at the conclusion of which he was cautioned and charged and made no reply,” he said.

Images of the Royal Bank of Scotland £20 notes which had been downloaded from an iPhone were found during the forensic analysis of the computer system, said Mr Allan. He added “The internet browser shows a record of a search for information relating to counterfeiting currency. There were other images on the hard drive of bank notes.”

Beaton was released on bail as Sheriff Charles McFarlane QC deferred sentencing until next month.

He said: “You have pled guilty to a serious counterfeit operation and the chances are, subject to anything that might be said, you will receive a substantial custodial sentence.”

SOURCE:

STV: ‘Counterfeiter made £30,000 in fake bank notes using digital images of £20′

Increasingly sophisticated techniques with counterfeiters are throwing up a huge challenge to authorities and money exchange houses with to forge notes with most of the security features used in real currencies, said forensic experts in Dubai.

The bogus bills were being produced in an apartment mostly with an inkjet printer. When the RCMP arrived to raid the apartment, the process of manufacturing the bills was not yet completed, said Sgt. Tony Farahbakhchian or the E Division Federal Commercial Crime Section.

“He didn’t quite have the finished product yet,” he said.

According to The Province, the bills had been printed three to a sheet on one side only and a watermark and puzzle number were missing. Security features such as security threads, foil strips and holographic stickers had also not been added.

Farahbakhchian told The Province that the quality of the notes varied, but overall they were average reproductions.

He also urged the public to pay close attention to their banknotes and to be aware of the security features, especially during the holiday season when counterfeit money can be easier to spread due to busy stores and the amount of money being exchanged.

Though the Bank of Canada introduced a new, more secure, polymer $100 bill in November, these fakes were modeled after the old series, which is still in active circulation.

Trevor Frers, from the Bank of Canada, applauded the raid.

“For the RCMP to seize over $1 million in counterfeit notes before they enter circulation, that’s a huge victory against counterfeiting,” Frers said.

According to RCMP, The Province reports, the overall passing of counterfeit bank notes has decreased since 2004 due to upgraded security features. The new polymer $100 note is expected to reduce counterfeiting even more and increase durability.

SOURCE:
The Province: “Cops Seize $1 Million In Fake Bills”

The first time counterfeiting hit the radar of the Bank of Canada in major way was in the 1980s. In an effort to combat the up-and-coming technology of colour photocopying, the bank introduced a new series of banknotes with finer detail and new security features.

“Fine details in the face and hair of the Queen and former Prime Ministers depicted on the bills were too finicky for photocopiers to handle and appeared fuzzy in reproductions. A shiny gold metallic patch placed on each bill turned dark when replicated, further thwarting the forgers,” Globe & Mail writer Grant Robertson writes.

As technology advanced, Canada’s currency did not. Home computers became more affordable, graphics software was readily available, scanners were commonplace and ink-jet printers became the default for many households. Counterfeiting suddenly became easier than ever.

By the late 1990s, “the number of fake Canadian bills rose as high as 117 parts per million (PPM). Most G20 nations used 50 PPM as their benchmark to stay below,” says the Globe and Mail.

In 2002, 16 years after their last series was issued, the Bank of Canada introduced a new series to thwart the “computer-savvy do-it-yourself counterfeiter.”

Again, new security features were added to the note to ensure it would prevent forgeries. In particular, the new series featured a shiny holographic stripe down one side of the bill that shimmered in the light as well a watermark that appeared hidden but showed up when held to the light.

Four years later, in 2004, counterfeiters were learning to replicate the holographic stripe setting in motion the need to create a new series. In an attempt to create a product that was not only more secure but also a product that was more durable. For banks, the cost of producing new banknotes to replace damaged or used notes can be expensive. Polymer notes are typically two and half times more durable, according to the Bank of Canada.

In November, the Bank introduced the first polymer banknote in a developing series – a new $100 bill that contains several state of the art security features such as raised ink, a large transparent window that also contains a colour-shifting metallic portrait, hidden numbers in the transparent window that match the note’s denomination, transparent text, a frosted maple leaf window that also contains hidden numbers, among others.

Developing new banknotes in a timely fashion is one way for banks to stay ahead of counterfeiters.

“Counterfeiting rates have fallen steadily in Canada in recent years,” says the Globe and Mail. “The country now reports a parts-per-million ratio of below 40, which is finally in line with what most G20 nations consider acceptable.”

To read the full Globe and Mail feature, click HERE.

SOURCE:
The Globe & Mail: “Funny money: How counterfeiting led to a major overhaul of Canada’s money

There are two key components this specialized team takes into consideration when beginning the process of designing a new banknote series: security and durability.

Before they even begin designing banknotes, researchers are commissioned to evaluate new security techniques from around the world. As improving security is one of the main reasons for establishing a new banknote series this can be one of the lengthiest processes.

 In order to succeed in preventing counterfeiting, the development team has to “think like a counterfeiter,” Ted Garanzotic, a head scientist at the Bank of Canada. In collaboration with the police, the team studies counterfeit techniques and even tries to counterfeit their own banknotes in order to develop state-of-the-art security features.

The new Canadian banknotes feature security devices such as raised ink, a large transparent window that also contains a colour-shifting metallic portrait, hidden numbers in the transparent window that match the note’s denomination, transparent text, a frosted maple leaf window that also contains hidden numbers, among others.

Once the security features have been added and the design has been completed, the notes must then go through various stages of durability testing to understand how they will perform in circulation. These tests range from mechanical to chemical and are typically used to assess resistance to crumpling, tearing, abrasion, extreme temperatures, finger oils and prolonged sun exposure.

In the case of the new banknotes, they have been created with a polymer substrate instead of the tradition cotton-paper blend which will not only enhance durability, but will also reduce the amount of bills that have to be replaced due to typical wear and tear.

 The $100 bill will be the first note released into circulation in Novemeber 2011. The $50 will follow suit in March 2012 and the $20, $10 and $5 bills will all be in circulation by late 2013. To learn more about the creation of these banknotes, watch this video put together by the Bank of Canada:

SOURCES:

Bank of Canada: Banknotes
Bank of Canada: The Life of a Banknotes – From The Lab To Your Wallet (Part 1)

Wiun’s report comes on the heels of an investigation by the Edmonton police, Edmonton Transit Service and the city’s corporate security department, all of whom had been following leads and tips on the fake passes for several months. The city was notified of a potential scam when a security worker from a large company reported that someone in their building was selling transit passes at less than face value, said the Venture Beat: “Verayo Launches Security Chips For Fool-Proof Transit Passes”