The number of counterfeit banknotes in circulation in Germany has reached its highest level in seven years, prompting the Bundesbank to urge caution among the public.
In the first half of 2024, Germany experienced a significant increase in counterfeit banknotes, with nearly 39,000 fake bills detected, the highest number since 2017. The Bundesbank reported that these counterfeit notes had a total value of 2.4 million euros, marking a 29% increase compared to the second half of 2023.
This surge in counterfeit currency is concerning, as it represents a growing challenge to the integrity of the euro. In 2023, the European Central Bank reported that approximately 467,000 counterfeit euro banknotes were withdrawn from circulation across the euro area, highlighting the broader scope of this issue.
Prevalence of smaller denominations
Interestingly, while the number of counterfeit notes has increased significantly, the total value of fake currency has only risen by about 5%. This discrepancy is due to counterfeiters’ preference for producing smaller denominations. The 50-euro note was the most commonly counterfeited, accounting for 37% of all fakes, followed by the 20-euro note at 30%, and the 100-euro note at 15%.
Burkhard Balz, a member of the Bundesbank’s Executive Board, emphasized that despite the increase, the overall incidence of counterfeit money remains low, with approximately nine fake banknotes per 10,000 inhabitants. However, this statistic still translates to a significant number of counterfeit notes in circulation, given Germany’s population of about 83 million.
Identifying counterfeit notes
The Bundesbank advises the public to be vigilant and check banknotes using the “feel-look-tilt” method:
- Feel: Genuine euro banknotes have a distinct tactile quality due to their special paper and raised print.
- Look: When held against the light, authentic notes reveal a watermark and security thread.
- Tilt: Holographic elements on real banknotes change when tilted, displaying rainbow-colored effects around the motifs.
Many counterfeits can be easily identified by markings such as “MovieMoney” or “PropCopy” where a signature would typically appear. The public is warned that accepting or passing on counterfeit money, even unknowingly, can result in financial loss and legal consequences.
Counterfeit coins on the rise
The problem isn’t limited to banknotes. In the first half of 2024, nearly 80,000 counterfeit coins were seized, a 19% increase from the previous half-year. The two-euro coin was the most frequently counterfeited, accounting for 94% of all fake coins.
The Bundesbank attributes this sharp increase partly to financial institutions and cash-in-transit companies processing backlogs of coins accumulated during the COVID-19 pandemic. These backlogs include counterfeit coins that are now being detected and removed from circulation.
Counterfeit currency remains a global challenge. In response, many countries are implementing advanced security features in their banknotes. For instance, the Bank of England recently introduced polymer banknotes with enhanced security features, including holograms and see-through windows, to combat counterfeiting.
As technology advances, so do the methods of counterfeiters. The Bundesbank and other central banks continue to invest in research and development of new security features to stay ahead of counterfeiters and maintain public trust in the currency.
