Seizure of forged bank notes on the rise

The number of forged bank notes seized in the Czech Republic is up 7 percent so far this year, with authorities putting the increase down to successful police work targeting counterfeiters.

In the first three quarters of this year, 5,245 bank notes of various currencies and denominations were seized, compared with 4,904 in the same period last year.

The detections included 3,989 forged Czech bank notes, twice as many as last year.

The increase during the first three quarters of this year follows a 49 percent rise in detections in 2009 compared with the year before, with counterfeit crowns making up more than half this amount.

Pavel Zúbek, spokesman for the Czech National Bank (ČNB), said the rate of detections fluctuates depending on the progress of police investigations.

"Forgery statistics are usually influenced by successful police activities against counterfeiters," he said, pointing out that police completed "two big operations" over the past summer.

In May, police arrested a counterfeiter with 50 counterfeit bank notes. "That action actually closed production of more than 500 counterfeit notes in total," Zúbek said. Another operation in June saw police arrest a counterfeiter and seize more than 760 fake bank notes.

While 555 U.S. dollar fakes were seized so far this year compared with just 133 in the same period in 2009, the ČNB says that U.S. dollar counterfeiting has actually seen "a steady decrease" in recent years.

"This year is different," Zúbek explained, "mainly due to a big seizure amounting to more than 300 $100 counterfeited bank notes."

The reverse was true of imitation euro notes, the bank said, with seizures down from 2,546 last year to 624 so far in 2010.

"Last year, police accomplished quite a big seizure of counterfeited euro banknotes, whereas this year's euro forgery statistics are more standard," the ČNB spokesman said.

While the total value of the fake notes seized is not released to the public, the ČNB says the most frequently forged denomination was the 1,000 Kč note.

Czech bank notes are equipped with a wide range of security elements that help authorities counteract counterfeiting.

"Our currency is equipped with advanced security features for the [general] public and professionals, including fibers, printed areas [visible only] under ultraviolet light, OVI [color-shifting ink] and iridescent stripes on the highest denominations," Zúbek said.

The newest versions of the 500, 1,000, 2,000 and 5,000 Kč notes also have a windowed thread in the center, adding a special effect known as POLE that is visible only with a special viewer available to businesses that handle cash.

The ČNB urged the public to be more careful when accepting bank notes and to make themselves aware of the basic security features, which vary depending on the note and the year it was issued.

For example, the front of each 1,000 Kč note features a small black strip at its center with a negative microtext that reads "ČNB 1,000 Kč" when looked at closely. (More detailed descriptions for each note - including sample pictures - are available at Cnb.cz.)

In addition to the forgeries, 2,429 other imitation bank notes were seized in the first nine months of the year, up from 1,453 in the same period last year. The bank says these notes are not intended to be spent as counterfeits but are produced mostly as film props, teaching aids and advertising items.

The total amount of bank notes and coins in the Czech Republic rose by 30 million over the course of 2009, reaching almost 2 billion pieces in total.

At the same time, the overall value of the money in circulation fell from 398 billion Kč in 2008 to 386 billion Kč at the end of last year, with a decrease in the number of 1,000 and 2,000 Kč notes and an increase in the number of coins.

Last month, the bank announced it would complete the changeover from 50 Kč notes to coins, with the notes no longer valid tender after April 2011. Between then and April 2012, 50 Kč notes can be exchanged at any bank. The ČNB will continue to accept them for exchange until 2017.

Bill Lehane can be reached at
blehane@praguepost.com