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”

Using a technique called “rainbow printing,” the new banknotes issued by BI are made by using several colours on a single plate that results in a natural blending of the colours and will prove to be very difficult to counterfeit, according to Muhammad Dahlan, the central bank’s director for circulation.

The security feature has been used before in Indonesia. Dahlan told the Antara news agency that a special 2010 edition of the Rp 10,000 banknote employed the technique.

Increasing security features on their currency was necessary, according to Dahlan, because authorities have noticed a rise in counterfeiting.

“The head of the Bank Indonesia branch in Denpasar, Jeffrey Kairupan, said that during the first quarter of the year, a total of 1,107 counterfeit banknotes were discovered in the province,” reported The Jakarta Globe. “That is a 12.5 percent increase from the same period in 2010.”

In addition to these figures, police say the Muslim holy holiday of Ramadan – which is happening now – is a prime time for counterfeiting.

“Ramadan is often seized upon as the ideal time to print and circulate counterfeit money because people have little time to check security features on notes given the increase in transactions as people buy more food, jewelry, clothes and gifts,” wrote the Globe.

Bank Indonesia has not yet said if additional security features will be added to the new banknotes, though they have reported they would print Rp 150 trillion ($17.5 billion) in new banknotes by the end of this year.

SOURCE:
The Jakarta Globe: “BI Plans New Banknotes That Will Foil Counterfeiters”

The Bangko Sentral ng Pilipinas (BSP) is taking their education process to the streets by launching a campaign called “NO to Fakes. KNOW The Original” where they are actively going out into communities to hold forums and information sessions to highlight the changes to their new banknotes.

The latest series of banknotes, which was introduced into circulation last winter, features a complete redesign of the P20, P50, P100, P200, P500 and P1,000 bills and features several new anti-counterfeiting devices such as embossed print, watermarked images, embedded security threads, and fibers that are illuminated under ultraviolet light, among others. Bigger denominations, such as the P500 and P1,000, also contain an optically variable device which allows certain images to change colours when the note is tilted.

The public outreach campaign is not only helpful for citizens, it may also be helpful for the Philippines in the long run according to an article published on BusinessWorld Online.

“The awareness campaign is seen contributing to government and private sector initiatives to remove the country from the United States’ blacklist of countries tolerating intellectual piracy and counterfeits,” the article said. “The Philippines remains on this year’s US Trade Representative’s lower-level watch list of countries deemed not doing enough to protect intellectual property rights.”

This is the first time in nearly 30 years that the BSP has redesigned their banknotes.

Maja Gratia L. Malic, manager of the BSP’s Cash Department, told BusinessWorld that “around 40% of the 702 million pieces of new generation bills” initially printed by the central bank are currently in circulation.

SOURCES:
BusinessWorld Online: “BSP Launches Campaign VS Fake Peso Bills”
The Bohol Standard: “BSP Unveils New Generation Banknotes, Security Features”
Global Paper Security: “BSP Redesigns Banknotes To Keep Up With Security Technology”

Modeled after the current cotton-paper blend banknote, the fakes have been making their way to gas stations, video stores, taxi companies and even banks according to the Nanaimo Daily News.

In the last month, police have recorded 14 incidents of counterfeit $100, 30% of those incidents were submitted directly to banks in payrolls.

Compared to the national average – around 18,000 fakes were discovered across the country last year – the number may seem low, but other Western regions such as Vancouver Island and areas in Alberta have also reported incidents of high-quality counterfeit hundreds.

Counterfeit production has become easier over time thanks to technological advances in colour copying, laser printing and embossing. Though equipped with security features to prevent illegal copying, some still manage to produce reasonably similar facsimiles.

The new $100 bill, which will enter into circulation in November 2011, ups the ante on security features in Canada. Retaining the colour scheme and imagery of the current Canadian banknotes, the bills feature new security features such as see-through windows, raised ink, hidden numbers, holographs, and metallic images to prevent counterfeiting.

The new bills are also made with plastic substrates in lieu of cotton because polymer banknotes are more durable than paper banknotes – a big selling point for the switch.

SOURCES:
The Nanaimo Daily News: “Counterfeit $100 Bills Showing Up In Nanaimo Stores”
Winnipeg Free Press: “Bank Of Canada Unveils Plastic $100 and $50 Bills

Modern day banknotes are equipped with a plethora of high tech security features to prevent illegal counterfeiting. From see through windows to 3D holograms, and from microprinting to watermarks, security features not only prevent fakes from being produced they also help consumers and businesses identify bogus bills.

Despite these features, however, it is possible for counterfeits to slip through the cracks. But a new process invented by scientists a Bristish tech company is allowing anyone to pinpoint even the most elaborate bogus bills by examining its surface with a laser.

“If you look closely enough with a microscope, the surface of almost any material shows a naturally occurring randomness: the wood fibres in a piece of paper look like a layer of noodles; smooth plastic resembles a mountain range,” wrote The Economist recently. “The trouble is that employing a microscope powerful enough to record surface features at the required level of detail (a few microns) would be an expensive and cumbersome business, and not at all practical on a production line.”

That’s where the lasers come in. Shining a laser on the surface of an object can also provide information about the object – in this case, banknotes.

“The process was developed initially at Imperial College, London, and is based on a phenomenon known as laser speckle,” wrote The Economist. “The speckle is a scattering of light caused by micron-sized ridges and groves on an object’s surface. By detecting the change in this speckle, it is possible to chart the texture of the surface.”
The breakthrough in this technology isn’t in the laser speckle, however, it’s in codifying the speckle.

A company called Ingenia Technology has invested a machine to undertake this process. Made up on three small lasers and six detectors, variations in the speckle are digitized, codified and put into a database that can then be verified.

Called “laser surface authentication” the process is anticipated to not only be a quick and easy way to pick out counterfeits, but also to deter them.

“According to Andrew Gilbert, one of Ingenia’s directors, the probability of two surfaces generating the same code are lower than one part in a million trillion trillion. That is far more accurate than fingerprints, for example,” said The Economist. “A piece of paper such as a banknote can be crumpled, soaked in water, scorched and scribbled on but still have its surface clearly readable. Even torn, scratched and partially missing surfaces can be read. This is because, during the original scan, the detectors pick up such a large amount of information that a re-scan need provide only part of the speckle pattern for a reliable comparison to be made.”

This new process won’t necessarily render security features obsolete – after all, not every single person will be capable of laser surface authentication in the comfort of their own home, but it could very well prove to be a welcomed added bonus.

SOURCE:
The Economist: “Zapping Fakes With Lasers”

The new notes were part of a series introduced in two phases. The first new notes – the £10 and the £50 – were issued in 2010. All five denominations come equipped with these security features to prevent counterfeiting:

- Raised ink that has a distinguishing texture
- A watermark of Queen Elizabeth II featuring an electrotype watermark (lighter tones) in the tiara and denomination
- A security thread visible as silver dashes when laid flat, and visible as a continuous line when held to the light
- A partial castle on the left of the watermark that becomes a full image when held to the light
- A letter G that is only visible when the note is held to the light
- Serial numbers that show the digits progressively growing in size
- A metal strip with a complex pattern of images such as the Gibraltar castle and text which can be viewed when the feature is held up to the light. The reverse of the note bares a window and the entire feature fluoresces when examined under ultra violet light (this feature only appears on the £100 banknote)

The designs of each banknote “reflect the rich history and culture of Gibraltar, from the Moorish era to the present day,” said a pamphlet released to the public explaining the new look and features of the banknotes. “Each denomination has a portrait of Her Majesty Queen Elizabeth II, Queen of Gibraltar, on the front, complemented by pattern work representing Gibraltar’s strategic location at the entrance to the Mediterranean, where it meets the Atlantic Ocean. The reverse of each of the banknotes carries a vignette which shows as aspect of Gibraltar through the ages.”

Gibraltar is located on the southern end of the Iberian Peninsula at the entrance of the Mediterranean and is home to the famous Rock Of Gibraltar landmark.

SOURCES:
Gibraltar Stamps: “Gibraltar Banknotes”
“Know Your New Gibraltar Banknotes”

Indian Finance Minister Pranab Mukherjee said in an announcement Monday that counterfeiting had become “a matter of great concern” for the country, thus the need to upgrade the anti-counterfeiting devices on their currency.

Nearly a year ago, the India government made the decision to print Rs500 and Rs1,000 banknotes on special blue security paper in order to curtail counterfeiting. The specialty paper has higher durability compared to normal currency notes and radiated a blue hue that makes it virtually impossible for colour photocopiers to reproduce.

In addition to the new security features, Mukherjee also said that Security Printing and Minting Corporation of India Limited (SPMCIL) – the national bureau in charge of printing currency – was taking steps to produce more indigenous raw material for the production of banknotes.

“80-85 per cent of the bank note paper would be produced in the country in the next three years as against import of about 95 per cent paper at present,” an article in the Financial Chronicle reported.

To date, no details have been provided on the new security features that will appear on the new banknotes.

SOURCES:
Financial Chronicle: “Bank Notes To Have New Security Features Soon”
Economic Times: “Govnt Plans To Introduce Security Features In Notes”
Global Paper Security: “India Switches Rs500 & 1,000 Notes To Blue Paper”