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Is polymer the ultimate counterfeit deterrent?

June 21, 2011 by Brendan Burge

Counterfeit detection is certainly the most troublesome and costly responsibility for those in the cash handling business. There is not a country in the world that is not impacted by this criminal activity. Perhaps the only thing more costly and difficult than detecting valid counterfeits is the effort that goes into trying to stay ahead of the counterfeiters.

With new technologies, and an ever-increasing criminal appetite for the "easy dollar" (pun intended!), central bankers are constantly having to evolve and refine both overt and covert security features.

Today at 1 p.m. EST, the Bank of Canada unveiled its new $100 polymer banknote. Now that we have seen the new $100 note, I can begin to imagine what a challenge it will be for the counterfeiter to try and copy it.

A summary of the covert security features presents a daunting array of easily verifiable components:

• A large clear window containing a metallic hologram of the bust of Sir Robert Laird Borden - when the orientation of the note is changed, the hologram changes from monochrome to color
• Located in the lower portion of the large clear window is another metallic hologram of a building - when the orientation of the note is changed, the hologram changes from monochrome to color
• A small clear window containing a holographic maple leaf - by placing the small window close to your eye and looking at a single light source, one can see a circular image containing the numerical value of the denomination
• Colored graphics that bridge the opaque and clear sections of the polymer
• Fine detailed graphics of very high resolution that present on both sides of the note
• High contrast in feel between the overall smooth texture of the note and the very obvious raised ink print features

Based on these covert features, I am pleased that Canada will now be able to lead the way in developing currency technology that will all but obliterate the practice of counterfeiting.

One basic tenet of counterfeiting is that it must cost very little to produce the forgery - the lower the cost, the higher the reward for spending them. I do not believe that there is sufficient, publicly available technology to create convincing copies of this new series.

Although I am sure there will be attempts, likely quickly following the release of the new note, I am equally sure that they will be very poor imitations. There may be some early acceptance of counterfeit as the Canadian public becomes familiarized with the notes, but I expect that will be short-lived. So, I ask again, is polymer truly the media that will ultimately stop counterfeiting? My feeling is that will.

What is really interesting, but relatively unknown, is the amount of science that goes into counterfeit deterrence. I am not talking about the actual science itself - those details are of course closely guarded secrets. However, a recent newspaper article gave some insight into the scientific efforts The Bank of Canada has been devoting to the cause.