Counterfeit or genuine: can you tell the difference?
AbstractIn 2005, some 25,000 counterfeit euro banknotes were identified in the Netherlands, representing a fictitious amount of two million euro. In collaboration with the TNO research institute, DNB has investigated how accurately cash handlers and consumers with no cash handler experience can distinguish counterfeit euro notes from genuine ones. Also examined was the question whether the use of DNB's educational CD-ROM entitled 'Genuine or Counterfeit?' led to improved performance and whether such aids as UV lights or IR cameras helped to identify notes correctly. The results show that the public is quite capable of recognising a counterfeit note: without practice, members of the general public correctly identified 88% of counterfeit notes they were given to examine, while after training they scored as high as 96%. Remarkable scores were recorded by cash handlers operating without aids: even without training they showed themselves expert at sifting the wheat from the chaff (98% correctly identified counterfeit notes). Recognising genuine euro notes proved slightly more challenging, but here technical aids provided useful services. Practice with the help of the CD-ROM turned out to benefit untrained consumers in particular. They soon managed to bring their performance up to the level of experienced cash handlers.
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Bibliographic InfoPaper provided by Netherlands Central Bank, Research Department in its series DNB Working Papers with number 121.
Date of creation: Dec 2006
Date of revision:
banknotes; counterfeits; discrete choice model; experiment; training;
Find related papers by JEL classification:
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-01-02 (All new papers)
- NEP-DCM-2007-01-02 (Discrete Choice Models)
- NEP-MON-2007-01-02 (Monetary Economics)
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- VAN HOVE, Leo, 2007. "Central Banks and Payment Instruments: a Serious Case of Schizophrenia," MPRA Paper 5281, University Library of Munich, Germany.
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