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Russia busts counterfeiters who exploited ATM auto-deposit

October 17, 2013

Authorities in Russia have rounded up a gang of seven counterfeiters whose exploits were so effective that some banks stopped accepting 5,000 ruble banknotes — the denomination favored by the counterfeiters. The note, which has an exchange value of $155, is the highest denomination of Russian currency.

According to a report by RIA Novosti, the gang printed fake currency on plain paper. The notes did not have watermarks, but had all of the other markings that an ATM checks for to determine whether a note is authentic. 

The group deposited the notes in ATMs and then took out legal tender. In two weeks they withdrew a total of 8.5 million rubles ($263,000).

When the seven Uzbekistan nationals were taken into custody at an airport in St. Petersburg, they were carrying counterfeit notes totaling 15 million rubles ($465,000), RIA said.

According to the report, the head of Russia's central bank said in a TV interview that the banks' losses were the consequence of failing to upgrade ATM security systems.

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