Businesses and financial institutions could combat counterfeiting with effective cash counters
The risk of criminals successfully using counterfeited bills can be lessened when retailers and financial institutions use cash counters with counterfeit detection capabilities. According to the Royal Canadian Mounted Police, when significant financial losses are incurred by criminal use of falsified currency, consumers are left with the burden of paying higher prices for goods and services.
Both the Bank of Canada and the RCMP have taken significant steps in recent years to combat counterfeiting, but the problem has not yet been solved completely.
Counterfeiting remains a problem that can be reduced with capable cash counters
Advances in printing technology have allowed criminals to improve their methods of forging bills. The RCMP reported the total value of counterfeit notes in the country reached just over $900,000 last year.
The most frequently used denominations in Canada are the $20 and $100 bills, but these notes are also the most falsified.
The Bank of Canada is the only institution legally allowed to print Canadian currency. According to its website, it implemented multiple security features designed to increase the difficulty of counterfeiting money, such as holographic portraits, raised ink and intricate image placement.
But the measures have not fully deterred criminals. An Oct. 12 report by CBC News stated fake $100 bills with foreign writing on them were being used in the Iqaluit area.
In 2013 and 2014, over 110,000 individual forged bills were passed into general circulation with legitimate ones. However, only one-third of that amount was passed in 2015 and 2016.
Based on the RCMP data, efforts by Bank of Canada and the RCMP to combat the usage of counterfeit bills have largely been effective over the last few years. But the current methods are not 100 per cent failsafe, so not every false note is caught. Anyone working with cash on a daily basis could look for signs of counterfeiting on the bills they receive, but this task becomes more difficult when large amounts of currency are dealt with at one time. A cash counter with capabilities to detect counterfeit bills could help financial institutions and retailers reduce the instances in which they fall victim to fake currency.