Customers 'tricked' into accepting counterfeit notes

People who pay for goods in shops with notes should ensure they see sale assistants scan the money rather than allowing them to do so under the counter as some customers have been duped into accepting back counterfeit currency.

"The trick in some shops or bars is to keep a counterfeit note under the counter," sources said. "When given a note by a customer, the shopkeeper or barman scans it to ensure it's genuine, picks up the counterfeit note and hands it back to the customer instead of the original, telling him the note is a fake one and asking for another.

"This trick is very common in bars, especially when a customer is holding more than one note," the sources said.

The police recently arraigned a shop owner from Paola after he was allegedly found circulating counterfeit money in this way.

Although reports of counterfeit currency in circulation are not that common at the moment, one always needed to exercise caution, the sources warned.

The sources told The Times that when counterfeit money abounds, it is not unusual for bars in busy areas to circulate a considerable number of false notes in just one night. Counterfeit notes are usually imported and a Lm10 note is bought for under Lm3.

The use of counterfeit money waxes and wanes, depending on availability. But testifying in a case against a person caught using counterfeit money in automated petrol pumps, a police inspector had told the court this was a growing problem at automated service stations and several were considering shutting down their machines as a result.

Police sources said they expected a surge in fake currency when the euro is introduced next year, as many people would still be unfamiliar with the security features of the new notes.

When the euro was first launched within the EU it was said to be the most counterfeit-proof currency ever. Apart from having elaborate designs, all notes have at least five security features including watermarks and threads built into the paper, raised print, foil strips containing holograms and iridescent stripes that shine under a bright light. Higher denominations have additional holographic patches and ink that changes colour as the note is tilted.

A second tier of anti-counterfeiting characteristics includes magnetic materials that can be read by ATMs and other machines, while fluorescent inks and fibres are used to make notes glow under ultra-violet or infra-red light. Microprint, visible only under magnification, was also added.

The ultimate anti-counterfeit measure is known to just a few people at each country's Central Bank. Tiny amounts of a secret material, just a few parts per billion, are incorporated into notes so that when they are x-rayed, they produce a unique fluorescent spectrum of light.

Despite all this, counterfeit euros have flooded the European market. According to international police forces Europol and Interpol, forgeries have increased tremendously since 2003, with the most common denominations being the €50 and €100 notes.

Interpol recently said that after the euro came into circulation in 2001 and in the first six months of 2002, counterfeiting activities were at very low levels and the quality of the counterfeits was poor. But since mid-2002, the quality and quantity of counterfeit euros seized increased steadily. Interpol said an important factor in this expansion was that organised crime groups have extended their activities in this area.

In 2003, the numbers of counterfeit euros shot up. In addition, the quality of offset-produced and computer-generated counterfeits improved considerably. Groups in eastern European countries were behind many counterfeited notes. "Groups from Bulgaria and Lithuania lie behind seizures of counterfeits, which were notable either for their improved quality or the large amount seized," it has been reported.

Europol said that east European forgers have flooded Germany with counterfeit €50 banknotes. In the first four months of this year, Berlin police seized a total of 1,700 forged banknotes, mainly €50 notes, but €100 and €200 banknotes were also found.

The phenomenon of euro counterfeiting is rising not only in Europe. Last November, Europol reported it had successfully supported the Spanish police, the Colombian police and the US Secret Service in finalising an operation to dismantle an illegal print shop run by a Colombian organised crime group responsible for the highly-sophisticated production of counterfeit currency.

Counterfeit euro banknotes with a value of over €5 million were seized alongside $4.3 million.