Tips from the experts on avoiding counterfeits in Canada

In part three of this short series on counterfeiting in Canada, I will offer tips from the experts on authenticating genuine Canadian bank notes while detecting the bogus bills (see Part 1: Counterfeiting in Canada: Epidemic or Eradicated?  and Part 2: Defeating Canadian Counterfeiters at their Crooked Game).

According to the Bank of Canada, our appetite for cash is growing. Just like the Internet was going to create a "paperless society" so too the electronic age was going to rid us of paper money. Of course we all know, neither has happened. Just like there is more paper than ever, and the demand for printed dollar bills is also up.

And that is creating opportunities for the counterfeiters.

The Bank of Canada, as the only legitimate manufacturer of all Canadian currency, is battling these fraud artists, according to David Longworth, Deputy Governor of the BofC. "To deter counterfeiting, we do three key things ," he told an Ontario chamber of commerce audience recently.

"First, we take a great deal of care in designing bank notes. As I speak, my colleagues at the Bank are hard at work designing the next generation of bank notes, planned for introduction beginning in 2011. A significant part of the design effort goes into making the notes secure against counterfeiting," explained Longworth.

"Second, we conduct broad-ranging education efforts to help the public, retailers, and law-enforcement officers to authenticate genuine bank notes and detect counterfeit ones. In fact, if any of you would like some help in this regard, I invite you to go to our website and click on "Bank Notes ," where you'll find some useful training material."

"Third, we promote vigourous law enforcement. We work closely with police forces and the Crown, and provide them with information and training that can help in the prosecution of counterfeiters."

I want to focus on the second point: Educating yourself as a consumer or merchant to spot the phonies and avoid getting stuck with a useless piece of paper since there no recourse except to suffer the monetary loss.

First of all take the time to visit the Bank of Canada website . It details all nine anti-counterfeiting features built into every current $5 , $10 , $20 , $50 and $100 Canadian dollar bill. In fact they detail the entire series of Canadian dollar bills over the years as well as compare the security features of the various dollar denominations .

Authenticating a real bank note is more than looking at the colour or feeling the texture of the paper. You need to know the finer points of genuine legal tender. Here are just five ways to spot the difference:

1. Raised Ink on the Bill (Intaglio)

Here's the easiest and fastest check you can do with Canadian money - just run your fingers along the words BANK OF CANADA -BANQUE DU CANADA. If you feel the printing is raised from the rest of the bill, then it's real. This embossed effect can also be found on the face, coat of arms, and large number stating the denomination. If the bill is counterfeit these embossing features will be absent or simply peelable off the paper.

2. It's In the Details

Look for the sharp, well-defined lines that form background patterns and for microprinting: small, clearly defined characters within the diagonal lines around the portraits, to the right of the image of the Parliament Buildings, and inside the large numerals. These fine details are difficult to mimic and often look distorted on counterfeits.

3. Colours

Look at the colours on a genuine bank note; special inks create unique colours that are difficult for counterfeiters to reproduce without access to same formula and paper stock. You may notice differences in colour tones when comparing a suspect note with a real bill. Our 'play money' as Americans love to call actually has many anti-counterfeiting advantages over US dollars, which are blandly uniform as 'greenbacks' no matter what the denomination of the buck. At least with Canadian money you can actually tell what a bill is worth just by looking at the colour.

4. Hi-tech Holography

Tilt any note, and brightly coloured numerals and maple leaves will "move" within the shiny metallic stripe on the front of the bill. Colours will change through the various shades of the rainbow. There is a colour-split within each maple leaf. If you look carefully, smaller numerals (equivalent to the bill you're checking) appear in the background of the three-dimensional stripe. The stripe has curved edges.

5. Serial Numbers

Every bill has it's own unique serial number found along the bottom of each side: A three-letter prefix followed by a seven-digit number. Don't rely strictly on this method of detection, as there can be millions of bills in circulation at a given time.

Get educated to outwit, outsmart the con artists 

To get a more comprehensive review of counterfeit prevention at a retail level, Bank of Canada staff provides currency-education presentations to corporate trainers and resource protection personnel. Through their regional offices in Vancouver, Calgary, Toronto, Ottawa, Montréal, and Halifax, BofC officials will tailor an interactive and informative educational session. Contact the Bank of Canada by phone at 1-888-513-8212 or email This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

Another interesting ongoing discussion of counterfeiting in Canada can be found on this forum. Members alert each other to new counterfeits to help avoid getting stuck with a fake bill.