Imitation currency produced without the legal sanction of a state or government
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Counterfeit United States series 1974 $100 bill. Over-stamped with "Contrefaçon" on both sides. On display at the British Museum, London.
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Counterfeit money is currency produced outside of 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 money is a form of fraud or forgery, and is illegal in all jurisdictions of the world. 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.[1] Before the introduction of paper money, 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.[clarification needed] 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 banknotes and coins since the launch of the currency in 2002, but considerably less than that of the US dollar.[2]
Some of the ill-effects that counterfeit money has on society include[3][4] a reduction in the value of real money; an increase in prices (inflation) as a result of an increase in money being circulated in the economy—an unauthorized artificial increase in the money supply; 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.
^"A Case for the World's Oldest Coin". Archived from the original on 13 October 2018. Retrieved 29 January 2013.
^"Counterfeiting statistics for several currencies". Itsamoneything.com. 9 June 2012. Archived from the original on 2014-09-13. Retrieved 2014-09-21.
^"Counterfeiting of American Currency". p. 13. Archived from the original on 2007-06-14. Retrieved 2007-06-12.
^"Counterfeit Money, Who Takes the Hit?". William F Hummel. Archived from the original on 2007-06-16. Retrieved 2007-06-12.
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