Counterfeiting

Counterfeiting is the production and distribution of imitation money, goods, or documents with the intention of deceiving others about their authenticity and value. Currency counterfeiting is the most well-known form and is illegal in virtually all jurisdictions. Counterfeiters may also reproduce branded products, pharmaceuticals, software, certificates, or stamps to mislead buyers or officials and to obtain financial gain.

Common targets beyond banknotes include luxury goods, consumer electronics, cosmetics, and medicines. Counterfeits pose safety risks when quality control is poor, and they undermine trust in markets, create unfair competition, and erode government revenues through tax evasion and lost seigniorage.

Historically, counterfeiting has existed since antiquity and has evolved with technology. Modern banknote counterfeiting became more sophisticated with advances in printing and engraving; many countries adopted security features such as watermarks, intaglio printing, microprinting, security threads, holograms, and, more recently, polymer substrates. The rise of digital and e-commerce has shifted some illicit activity toward fake identities and counterfeit software or goods.

Detection and enforcement rely on central banks, law enforcement, customs agencies, and brands. Banks train staff and deploy scanning devices; the public is advised to check security features and use verification tools. Anti-counterfeiting technologies include serialization, QR codes, RFID, invisible inks, and tamper-evident packaging. For currency, counterfeit detectors and UV or infrared devices are common.

Legal frameworks criminalize counterfeiting and may impose criminal penalties, fines, and imprisonment. Governments pursue international cooperation to interdict and seize counterfeit goods and to shut down production networks. Economically, counterfeiting imposes costs through losses to revenue, consumer risk, and the cost of anti-counterfeiting measures.

Prevention focuses on improving security features, supply-chain integrity, and authentication technologies, as well as public awareness and educational campaigns to help individuals spot fakes. Companies and authorities increasingly use track-and-trace serialization, brand protection, and cooperative enforcement to reduce illicit activity.