On October 10th, the central bank of England (BoE) introduced a new initiative to reduce the number of counterfeitThe reproduction or alteration of a document or security element with the intent to deceive the public. A counterfeit banknote looks authentic and has been manufactured or altered fraudulently. In most countries, currency counterfeiting is a criminal offence under the criminal code. More banknotes accepted by retailers. The programme – named BanknoteA banknote (or ‘bill’ as it is often referred to in the US) is a type of negotiable promissory note, issued by a bank or other licensed authority, payable to the bearer on demand. More Checking Scheme – aims to promote banknote checking and authenticationThe process of proving that a banknote or security document is genuine. More at points of sale, which are considered the “frontFacade, face. See Obverse. More line of defence”.
Indeed, businesses and retailers represent an ideal point of entry to introduce counterfeit banknotes in the system as these are not systematically authenticated by machines. As a result, the BoE decided to focus on educating staff, notably through free training offered to participating businesses. In addition, the central bank also released training materials such as leaflets, posters and webinars that guide users through simple and effective authentication steps, including the identification of visual and tactile identifiers.
This BoE initiative will encourage contacts between the issuing authorityThe entity authorised to issue money of legal tender in a country. Generally, the expression is synonymous with a central bank or a monetary authority. More and retailers. Indeed, the bank allocated a point of contact to each participating business to strengthen collaboration and allow for better exchangeThe Eurosystem comprises the European Central Bank and the national central banks of those countries that have adopted the euro. More of information. Both parties will benefit from this partnership as retailers will be trained to detect counterfeits and how to handle situations whereby they should encounter a fake note, whereas the central bank will have a chance to know more about current practices used by fraudsters by collecting samples and testimonials reported by staff members.
Between the end of 2016 and June 2017, no less than 237,000 fake banknotes worth £4.8 million were removed from circulation in the UK. The £20 note is the most targeted as it is the most frequently used by consumers. These figures are proof that the current detection system is already extremely efficient as all these banknotes were often removed before being used in a transaction. Thanks to this initiative, these figures are expected to improve even further.
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