by Gregory Elich

North Korea, it is often said, is a criminal state. One of the more persistent stories supporting that allegation is that the North Koreans are counterfeiting U.S. currency. Through repetition, the claim has taken on an aura of proven fact. This in turn has been cited as justification for everything from imposing punitive measures against North Korea to suggesting that the nation cannot be trusted as a partner in nuclear negotiations.

The evidence against North Korea is widely regarded as convincing. “The North Koreans have denied that they are engaged in the distribution and manufacture of counterfeits,” says Daniel Glaser of the U.S. Treasury Department, “but the evidence is overwhelming that they are. There’s no question of North Korea’s involvement.”1 There is no denying that North Korean citizens have been caught passing counterfeit currency in Europe and Asia, and some defectors from the Democratic People’s Republic of Korea (DPRK — the formal name for North Korea) claim to have first-hand knowledge of state-run counterfeiting operations. In Western media reports the case is treated as proven. Yet the closer one examines the matter, the murkier the picture becomes.

Counterfeit currency attributed to North Korea raises deep concern due to its extremely high quality. Dubbed supernotes, their production process closely matches that of the genuine article, and the engraving is so fine it rivals that of the U.S. Bureau of Engraving and Printing.2

Unlike most of the world’s counterfeit currency, which is printed on offset presses or through digital processes, supernotes are printed on an intaglio press. The Bureau of Engraving and Printing uses Giori intaglio presses for the engraved portions of its bank notes, and an offset press for the background colors. Supernotes use the same technology. An intaglio press operates by applying ink on its plates and then wiping them clean, leaving ink only in the engraved lines. The plate is then pressed against the paper, depositing the ink in ridges. The result is raised printing that ordinary counterfeits can’t duplicate. Supernotes have the same look and feel as U.S. currency. (more…)

The European Central Bank has launched an investigation after counterfeit €50 notes were advertised for sale on the internet.

The notes are being offered in bundles of 21, for a price of €50, by a British printing company.

The website in question claims the fake notes were ordered for use in a Hollywood blockbuster movie that has since been abandoned.

It is selling 2,000 bundles, each comprising of 21 counterfeit notes, for €50. A disclaimer on the website says the notes should only be used for entertainment purposes. This follows a claim that the counterfeit currency is so good, some banks could not spot them as being fake.

The European Central Bank says it is treating as very serious the possibility that counterfeit notes are being sold online.

It has launched an investigation as to whether the strict reproduction rules governing euro banknotes have been broken and says it will follow up its enquiries by contacting the relevant national authorities. Full Story Here

Fake Morgan dollars identified by Montgomery, Ill., dealer Tom Campbell of Tom’s Fine Coins led to an April 4 arrest of an individual who was attempting to sell them through online classified ads.

“About half were common date,” Campbell said. “All weighed 18-19 grams and were attracted to a magnet, some weak, some strong.”

Approximately 20 coins ultimately were involved, though Campbell initially attempted only to buy two 1885-CC dollars for $280. He asked the seller to bring them in person and he would pay $40 per coin more. They arranged to meet in a public place in Plainfield, Ill.

When Campbell realized they were fake, he contacted the Lansing, Ill., Police Department, where the seller was from.

The seller later contacted him offering an 1893-O, 1892-O and an 1886. Campbell worked with the police to set up a sting in a local business in Lansing. When Campbell signaled that the offered coins were fakes, the police moved in and made an arrest of the suspect and his wife, who was waiting in a car. Read Full Numismaster Article

Have you ever wondered what an illegal coin minting operation looks like? Are you curious about how the Chinese are making all of those fake coins we have been seeing recently? If so, the Chinese Coin Counterfeiting photo gallery will interest you. There are photos of the coin presses they use, the fake coin dies they make, and the actual coins they strike. I have added some commentary where I was able to get information about the processes, but as you can probably imagine, my sources aren’t exactly being forthcoming about this information.

Some of the photos in this gallery surfaced in coin collecting discussion forums earlier this year. I would like to acknowledge the anonymous owner of the BiddlesBank.com Web site for leading me to these photos, and for providing information that got me started tracking them all the way down to their Chinese sources. It is obvious that this Chinese counterfeiting operation is a large scale endeavor that is flooding thousands of fake coins into our coin collecting marketplace every month. As the photos will reveal, these fakes are dangerous, high-quality specimens that will fool all but the most observant collectors. Read full article by Susan on About.com

By Elizabeth Blunt BBC News, Addis Ababa

Twenty-six people are under arrest over the discovery of 90kg (14 stone) of fake gold in the vaults of Ethiopia’s central bank, a senior official says.

The fraud was discovered after some of the supposed gold was sent to South Africa, where it was found to be gold-plated steel. Those held are expected to be charged in the next couple of weeks.

Rumours have been flying around the capital Addis Ababa about what happened to the real gold and who was to blame. Those being held include officials of the national bank, said Berhanu Assefa, a spokesman for Ethiopia’s Ethics and Anti-Corruption Commission. The commission has been investigating the case for three months along with Ethiopian police and intelligence officials.

“Around 26 are under arrest - seven from the national bank of Ethiopia, four from the Ethiopian Geological Survey and 15 businessmen and their collaborators have been arrested,” Mr Assefa said.

“No-one has yet been charged - we expect that… our prosecutor will charge them.”

The value of the missing gold was around 158m Ethiopian birr, or $16m for just one of the missing cases, he said, adding this was a huge amount for a poor country such as Ethiopia.
Read Full BBC Story