Banks have become more adept and skilled in detecting fake or counterfeit banknotes as reflected in a reported 18.4 percent increase in documented counterfeit money to 69,925 pieces in 2024 from 59,080 in 2023, Bangko Sentral ng Pilipinas (BSP) data showed.
BSP defines counterfeit money as imitation Philippine currency, both banknotes and coins, that are produced to deceive and pass off as genuine. The central bank warns the public that these imitations, whether of Philippine or foreign currency, is “illegal and a form of fraud.”
In an annual central bank report, 69,922 pieces of counterfeit money are from the New Generation Currency (NGC) series and enhanced NGC (eNGC), while only three are polymer banknotes.
Paper banknotes accounted for the bulk of fake money production, specifically the P1,000 banknotes at 59.9 percent, followed by P500 banknotes at 19.3 percent.
“Banks’ cash handlers are increasingly becoming adept in counterfeit detection, with a sustained increase in correctly classified submissions to the BSP and a decline in misclassified counterfeits,” the BSP said.
The central bank also reported that counterfeits are “frequently recovered in areas with high foot traffic.”
Shopping malls have the highest number of fake banknotes with 27.2 percent of the total, followed by supermarkets with 25.9 percent and wet markets with 20.9 percent.
“This highlights the need for targeted anti-counterfeiting campaigns in these areas,” the BSP said.
Resilient NGC, polymer
The NGC paper banknote series was released in 2010, while its enhanced version was released in 2020. Both series are still legal tender and may be used as payment for goods and services.
The BSP said the P1,000 polymer banknote exhibited resilience with only nine low-quality counterfeits recorded since the start of its release.
The polymer series started with the P1,000 polymer banknote, which was introduced in April 2022. The other polymer denominations—P500, P100, and P50—were only released in December 2024.
“These counterfeit polymer banknotes were printed on paper, with the transparent portions cut out and substituted with substandard plastic, making them easily detectable by the public,” the BSP said.
Counterfeit coins, meanwhile, declined by 87.8 percent and remained below one part per million of genuine coins in circulation, according to the report.
“Most counterfeit coins were remnants from previous years, primarily involving 5-piso coins from the BSP Coin Series. The enhanced security features of the NGC, including the micro-printed details and laser-engraved designs, effectively curbed counterfeiting attempts,” the BSP said.
Various techniques
The BSP has always encouraged banks to improve and enhance counterfeit detection. In 2024, with years of skills-training and other anti-fake money programs led by both the BSP and banking groups, this yielded positive results.
Counterfeiting techniques, according to the BSP, predominantly involved inkjet printing, which accounted for 79.7 percent of documented cases. This was followed by laser printing at 12.6 percent and altered security threads at 7.6 percent.
Geographically, reported counterfeit currencies were highest in the National Capital Region with 52.2 percent of the total. Region IV-A (CALABARZON) accounted for 12.2 percent of the total.
Mutilated banknotes, coins
In 2024, the volume of severely damaged banknotes examined by the BSP grew by 34.7 percent.
Paper banknotes comprised 94 percent of claims, while polymer banknotes accounted for the remaining 6 percent.
The central bank said the volume of examined mutilated coins rose by 46 percent.
“Major claims were from public submissions, reflecting the growing reliance on BSP mechanisms for addressing mutilated currency,” the BSP said.
The central bank recorded a significant increase in complaints related to currency integrity or 103 incidents in 2024. These included suspected counterfeiting, unauthorized use of the local currency’s facsimile of legal tender, and the refusal of commercial establishments or individuals to accept certain banknotes and coins.
Under BSP Circular No. 61, released in 1995, the BSP has the sole power and authority to issue currency within the territory of the Philippines.
