Counterfeiting is the illegal practice of creating imitation coins and banknotes or altering genuine currencies to falsely inflate their value. With the advent of advanced technology, counterfeiters have become more adept at producing fraudulent financial instruments, posing a significant challenge worldwide.
The term “counterfeiting” refers to the production of fake coins and banknotes or modifications to legitimate currency to increase its face value. According to INTERPOL, counterfeiting undermines the global financial system, supporting illicit activities of organized crime and terrorist groups.
To measure the extent of counterfeiting, countries use a metric called Parts Per Million (ppm). This metric represents the number of counterfeit notes per one million genuine notes, with most countries striving to maintain a rate below 15 ppm.
Here are the most frequently counterfeited currencies globally, as reported by YahooFinance:
| Rank | Country | PPM |
|---|---|---|
| 1 | US Dollar | 100? |
| 2 | British Pound | 42 |
| 3 | Euro | 13 |
| 4 | Australian Dollar | 9 |
| 5 | Philippine Peso | 7.9 |
| 6 | Canadian Dollar | 7 |
| 7 | South African Rand | 3 |
| 8 | New Zealand Dollar | 0.8 |
| 9 | Malaysian Ringgit | 0.3 |
The US dollar holds the dubious distinction of being the most counterfeited banknote globally. YahooFinance notes that the precise number of counterfeit US dollars is not publicly available, as the US government does not disclose this information. However, a 2006 report indicated that approximately one in every 10,000 US bills was counterfeit.
In Nigeria, the Central Bank of Nigeria (CBN) reported that the rate of counterfeit notes from January to December 2016 was less than 1% (0.0014%), equating to 14 counterfeit notes per million genuine banknotes. Despite this low figure, there are still reports from bank customers about receiving counterfeit notes from authorized ATMs.
Nigeria’s Counterfeit Currency (Special Provisions) Act of 1974 stipulates severe penalties for counterfeiting, including life imprisonment for individuals who produce or alter banknotes or coins resembling legal tender from any country other than Nigeria.