Counterfeiting banknotes: what to do if you have doubts about the authenticity of money
The level of counterfeiting of national currency banknotes in 2024 experienced a moderate increase compared to the extremely low levels of 2022-2023 and approached the levels of 2021, which preceded the full-scale invasion. At the same time, the situation remains under control and does not pose a threat to the country's economy.
Thus, in 2024, there were about 5.1 counterfeit hryvnia banknotes per 1 million genuine hryvnia banknotes. In 2021, this figure was higher and amounted to about 7.1 counterfeit banknotes.
For comparison, according to the European Central Bank, the similar figure in the European Union in 2023 was more than three times higher and amounted to about 16 counterfeit euro banknotes (in 2021, it was almost twice as high as in Ukraine, 12 counterfeit euro banknotes). The ECB has not yet released data for 2024).
About counterfeiting the national currency
The moderate increase in the level of counterfeiting of hryvnia banknotes in 2024 was due to an increase in the activity of criminals, which is explained by their certain adaptation to the realities of martial law and a desire to test the effectiveness of the banking and law enforcement systems in countering such cases.
In 2024, the most frequently withdrawn banknotes were of two denominations:
- UAH 500 (78% of the total number of seized counterfeits)
- UAH 200 (18%).
Other counterfeit banknotes in the denominations of UAH 1, 5, 10, 20, 50, 100, and 1000 withdrawn from circulation accounted for only 4%.
Last year (as in 2021-2023), old-style hryvnia banknotes were the most counterfeited. According to the results of 2024, counterfeits of the new design hryvnia banknotes accounted for only 5.5% of the total number of counterfeits seized in the Ukrainian banking system. Accordingly, the number of counterfeit hryvnia banknotes of the new design per one million genuine banknotes in circulation last year amounted to only 0.3. For the most part, these counterfeit hryvnia banknotes were of poor quality and were designed to target the inattentiveness of citizens and cashiers at retail outlets.
This is due to the fact that the current generation of national currency banknotes, in particular the 100, 200, 500, and 1,000 hryvnia banknotes, which the NBU introduced in 2015-2020, have an improved design and enhanced security system and are not inferior in design and security to the Euro banknotes of the Europe series and the US dollar banknotes of the New Generation series.
The current generation hryvnia banknotes have an updated design, special banknote paper is used to protect them, and modern optically variable security features are used for high-denomination banknotes, which are most often counterfeited: "window" security tape and the SPARK element with kinetic effects of background image movement and color change, respectively. They are easy for citizens to check and almost impossible for criminals to reproduce.
About counterfeiting foreign currency
The extremely low level of seizures of counterfeit foreign currency banknotes observed in 2022-2023 also almost returned to the level of 2021 in 2024.
Among the counterfeit foreign currency banknotes withdrawn from circulation in 2024, US dollars prevailed, accounting for 93% of the total number of all counterfeit foreign currency banknotes withdrawn. Last year, euro banknotes accounted for only 7% of seized counterfeit foreign currency notes.
Most often, criminals counterfeited foreign banknotes of the following denominations:
- USD 100 and USD 50 (90% and 9% of the total number of seized counterfeit USD);
- EUR 200, EUR 100, and EUR 50 (35%, 25%, and 21% of the total number of seized counterfeit euros, respectively).
In order to avoid cases of counterfeit foreign currency, the NBU advises never to carry out currency exchange transactions "in person", via the Internet, etc. For this purpose, you should apply exclusively to the currency exchange offices of banks or non-bank financial institutions licensed by the National Bank.
After all, all counterfeit foreign currency withdrawn from circulation is guaranteed to be sorted as doubtful by properly configured counters and banknote sorters (including those with ultraviolet, infrared, and magnetic protection). In other words, counterfeits do not pose a threat to banks and financial institutions, but are primarily designed to target the inattention and lack of knowledge of citizens.
What to do if you have doubts about the authenticity of money
In case of doubts about the authenticity and solvency of hryvnia and foreign currency banknotes, citizens may contact banks that submit these banknotes to the NBU for examination.
Based on the results of such examinations, which are carried out free of charge, customers are reimbursed the corresponding amount of hryvnia banknotes recognized as genuine and legal tender. Foreign currency banknotes recognized as genuine, regardless of the degree of wear or damage, are returned to the initiator of the examination.
Counterfeit banknotes are withdrawn without reimbursement of their value. The NBU informs law enforcement agencies about their seizure, and all counterfeit banknotes are handed over to their authorized employees for investigation in accordance with the established procedure.
In order to counteract the spread of counterfeit banknotes, the NBU constantly cooperates with law enforcement agencies that are responsible for investigating the spread of counterfeit money. In particular, active cooperation with the Bureau of Economic Security of Ukraine, the Department of Strategic Investigations of the National Police of Ukraine, and expert institutions of the Ministry of Internal Affairs of Ukraine and the Ministry of Justice of Ukraine is ongoing.
For reference.
Knowing the security features of banknotes and carefully checking them when making cash payments or currency exchange transactions minimizes the risk of counterfeiting.
In general, the security features on hryvnia banknotes (more than 20 security features on each banknote) make it possible to detect counterfeit banknotes during a careful visual and tactile inspection without the use of special equipment.
Thus, the authenticity of the hryvnia banknote is checked in the following ways:
1) by touch - the banknote paper and the relief of individual images on the front side of the banknote are checked, which is ensured by a special type of printing;
2) visually checked against the light:
- the presence of watermarks (a multicolor watermark is an image of a portrait that repeats the portrait printed on the front of the banknote and a light element of the watermark is an image of a digital denomination of the denomination or a graphic sign of the national currency of Ukraine - the hryvnia)
- the presence of a through element (combined image) - a fragmentary image of the digital denomination designation made on the front and back sides, which acquires a holistic appearance without breaks and shifts when the banknote is viewed against the light;
- the presence of a protective tape completely immersed in the thickness of the paper, on which, with the help of a magnifying glass, the image of the digital denomination, the inscription "UAH" and the image of the small State Emblem of Ukraine (trident) can be seen in straight and inverted form when the banknote is viewed against the light;
3) by changing the angle of inclination of the banknote, the images are visually checked:
- images made with optically variable inks that change color when the banknote is viewed from different angles (on medium and high denomination banknotes of the 2003-2007 design and new UAH 20 banknotes of the 2018 design and UAH 50 banknotes of the 2019 design) and have the kinetic effect of gradually changing one color to another (the SPARK element is contained on the UAH 100, 200, 500, and 1000 banknotes of the 2014-2019 design)
- a "window" (partially embedded in the paper) polymer protective tape of the appropriate color (brown on the 2014 design 100 hryvnia banknotes, blue on the 2019 design 200 hryvnia banknotes, and dark gray on the 2015 design 500 hryvnia banknotes, UAH 1000 of the 2019 design - purple), which contains the image of the digital designation of the banknote denomination and the graphic sign of the hryvnia (for banknotes of UAH 100-500 denominations), the image of the small State Emblem of Ukraine (for banknotes of UAH 1000 denomination). When changing the angle of banknotes, a pronounced kinetic effect of changing the direction of movement of the background images of the tape is observed;
- a latent image of the digital denomination designation visible when the banknote is viewed at eye level against the light at an acute angle (dark on a light background when the banknote is viewed from the long side, light and dark on the short side).
A detailed description of all national currency banknotes in circulation and their security features is available on the NBU's official website.
At the same time, citizens can learn more about the security features of the US dollar and euro banknotes in circulation on the websites of the US Treasury Bureau of Engraving and Printing and the European Central Bank, respectively.
