When SBS Punjabi listener Manmohan Singh Saxena contacted us recently and told us that at least one $50 note withdrawn from a Melbourne ATM was fake, we contacted the Reserve Bank of Australia to know more about the magnitude of this issue.
A spokesperson from the RBA responded saying, "Counterfeits can be detected in circulation or seized by police before they enter circulation. Generally, counterfeits will be identified because they are missing one or more security features that are present on genuine banknotes. These features are listed on the Bank’s .
"The Reserve Bank and the AFP are aware of all counterfeits passed or seized, however, it is possible that there may be some understating of counterfeit activity due to the complex nature of reporting behaviour."
So here is what you need to know about counterfeit notes in Australia.
1. The counterfeiting rate in Australia is 18 parts per million, as of the end of October 2017. This means, that for every million real banknotes, there are 18 fakes of different denominational values. For example in the year 2017, fake notes worth $1.7 million were seized and in the year 2016, the counterfeits totalling up to $1.6 million were taken out of circulation.
2. The $50 banknote is the most targeted denomination for counterfeiting, both in absolute terms and as a share of the volume of banknotes in circulation. Between 2014-2017, $50 notes worth AUD $5 million were seized and taken out of circulation - including 18,185 notes in 2017; 28,230 in 2016 and 31,590 in 2015.
3. The $100 is the second most common note to be counterfeited in Australia. Between 2015-2017, green $100 bills worth AUD $1.7million were seized. To break it down further, a total of 7,890 notes were impounded in 2017, 4,858 in 2016 and 3935 in 2015.
Source: Reserve Bank of Australia
4. Notes of smaller denominations such as $20, $10 and $5 notes can also be counterfeited, but to a much smaller magnitude. In the case of the year 2017, a total of 26,876 fake notes were seized of which 18,185 were $50 notes, 7,890 were $100 notes, 592 were $20 notes, 178 were $10 notes and the remaining 33 were $5 notes.
5. You can be penalised for passing on a fake note. Counterfeiting is a crime under the Crimes (Currency) Act 1981 and there are penalties for knowingly passing on a counterfeit note.
6. If you are concerned about the authenticity of a banknote, you should report it to your local or federal police and surrender the suspected counterfeit to them. If the banknote proves to be genuine, full value will be paid. However, no value is paid for counterfeits.
7. Should customers/clients be reimbursed if they unwittingly withdraw a fake note from an ATM? Generally, if someone accepts a counterfeit, they will not be reimbursed. If someone believes a counterfeit was withdrawn from an ATM, the Reserve Bank suggests that they contact the bank that owns the ATM or hand it to the police. In an update to Mr Manmohan Singh Saxena's complaint, the Westpac branch from where he withdrew the fake $50 note has credited the money back into his account, as a goodwill gesture.
8. Are counterfeit notes being produced in Australia or overseas? According to the RBA spokesperson, "Counterfeiting incidents can come through both domestic and international channels. In recent years, the threat has arisen mostly through domestic channels. The Reserve Bank carefully monitors and analyses counterfeiting activity in Australia (and elsewhere) and works closely with the Australian Federal Police (AFP) and Interpol so that necessary steps are taken to ensure banknotes remain a safe and secure payment method.
9. How can you tell whether a note is genuine or fake? Every Australian banknote has many security features which can help you distinguish a real note from a counterfeit. To avoid being defrauded, people should arm themselves with knowledge about these security features and check banknotes before accepting them. Banknote and security features can be further explored on the Bank’s or its .
More on this story from SBS Punjabi
Fake Australian notes worth nearly $1.5 million detected in 2017
