Counterfeit Corner

Let’s talk statistics, even though it is not my favourite subject!

There are many different ways to obtain counterfeiting rates, but the recognised standard is parts-per-million (ppm). However, this number is dependent on the number of genuine banknotes in circulation remaining relatively constant.

PPM also only includes the number of counterfeit banknotes that were removed from circulation, not the ones seized before they entered into the economic market. For example – removing £10 million before it has been accepted by a business is still an important factor in determining the counterfeit threat.

Central banks can easily record the number of counterfeits that are processed through the banking system, but what about all the counterfeits that go to law enforcement? This may be a significant number that may not be included in the counterfeit statistics. There may also be a very different type of counterfeit (a really good one) that is being handled by the police compared to the ones in the banking system.