The German central bank, Bundesbank, records a significant uptick in counterfeit currency.
Last year, authorities removed a significant amount of counterfeit money from circulation, marking one of the highest rates in recent times. Despite the increase, the overall damage caused by these fake notes decreased, largely due to their poor quality, which makes them effortless to spot, as per the Bundesbank's observations.
The number of counterfeit banknotes in Germany reached an all-time high since 2017 in 2024, with 72,413 fake bills seized. This figure represents a 28% increase compared to the previous year. Burkhard Balz, a Bundesbank board member, pointed out this trend, stating that there's been an increase in counterfeit money both in Germany and the eurozone. Across Europe, the number of seized euro banknotes rose by 18.6% last year, reaching a staggering 554,000 from the previous year.
Balz emphasized that the quality of counterfeit money hasn't improved, despite the rise in numbers. The existence of counterfeit 10- and 20-euro notes with labels like "MovieMoney" and "Prop copy," which have been circulating for years, still makes it easy for users to recognize them as counterfeit.
Criminals use these notes, which are also sold as play money or film props online. The number of counterfeit 200- and 500-euro notes used in illegal transactions decreased last year, contributing to the overall decrease in damage caused by counterfeit money. However, the total damage in Germany declined from €5.1 million to €4.5 million compared to the previous year. Balz noted that while the number of counterfeit banknotes is higher than in previous years, the overall numbers still remain comparatively moderate.
Despite the rise in counterfeit banknotes, the Bundesbank reports that city-dwellers are relatively unlikely to receive a fake note. On average, nine fake banknotes per 10,000 inhabitants were detected in Germany in 2024, and 16 per 10,000 inhabitants across Europe. However, anyone who accepts counterfeit money needs to bear the loss because it is not replaced if discovered later. The Bundesbank strongly advises against attempting to pass the fake notes to someone else, as it's considered a criminal offense. Instead, such notes should be handed over to the Bundesbank or the police to prevent further damage.
Factors contributing to the increase in counterfeit banknotes include the rise of online commerce, technological advancements, international organized crime, cryptocurrency usage, and economic pressures. Despite ongoing vigilance and enforcement efforts, the quality and detectability of counterfeit banknotes remain key factors in controlling their impact. Effective detection mechanisms, such as those implemented by the Pericles IV program, came into play in controlling the number of counterfeit banknotes found. Continued cooperation, vigilance, and enforcement efforts are necessary to maintain control over the situation.
In 2023, the Bundesbank reported an average of nine counterfeit 20-euro banknotes per 10,000 inhabitants in Germany, a figure that remained relatively constant compared to previous years. Despite this, the overall damage caused by counterfeit currency decreased due to the poor quality of the fake notes. Burkhard Balz, a Bundesbank board member, highlighted the trend of an increase in fraudulent banknotes, acknowledging that this issue is not unique to Germany but is also prevalent in the eurozone.
