Counterfeit Deterrent Features for the Next-Generation Currency Design (1993) / Chapter Skim
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5 Counterfeit-Deterrent Strategies
5 Counterfeit-Deterrent Strategies
Pages 87-100
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From page 87... ...
This chapter summarizes those elements that can be used to formulate a comprehensive national strategy that can reduce future counterfeiting incidents of U.S. banknotes.
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From page 88... ...
In the latter case, knowing that a counterfeit has been created and its production eventually stopped is a reaction mode of operation and is the domain of the Secret Service; the Treasury Department along with the Federal Reserve Board should anticipate advances in the level of sophistication of the counterfeiter, adjust the type and timing of deterrent features accordingly, and perform in a proactive mode. There is a considerable amount of scientific and technological work underway in university, industrial, and government research laboratories that could have relevance for future counterfeit deterrence.
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From page 89... ...
Thus, under normal circumstances a feature must be targeted at a counterfeiting threat well before the threat is fully realized. Counterfeiters will thus enjoy a period of time to learn tOne of the strongest recommendations of prior National Materials Advisory Board studies was the selection and use of a technical advisory group consisting of experts tO serve as a "sounding board" and provide counsel, guidance, and direction to the development of advanced features.
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From page 90... ...
Strategies could include conducting additional production risk assessment before the changes are finalized, expediting the contracting process, and establishing a timetable for periodic assessment and replacement of, addition to, or modification of counterfeit-deterrent features. As part of a major currency redesign effort, some visible features could be incorporated in anticipation of future threats but not initially disclosed.
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From page 91... ...
The effectiveness of such devices would be enhanced if a standard banknote feature, or small set of such features, was adopted by many countries; however such features must be unique to currency to preclude inadvertent disabling of the copier or printer. Whereas the simulation of multiple deterrent features may not require expertise and sophisticated equipment, it does require an investment of time a considerable investment if the simulations are clone by hand, one at a time.
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From page 92... ...
These could then be subjected to adversarial analysis to determine their deterrent effectiveness and used to gauge public acceptability through mechanisms such as focus groups. REACTIVE AND PROACTIVE STRATEGIES Overt, visible deterrent features in a banknote that are very difficult to reproduce serve as the most obvious means of authentication.
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From page 93... ...
The practical advantages of the proactive approach include the containment of small counterfeiting problems and the orderly transition to new currency designs. A principal disadvantage is the expected difficulty of achieving a consensus for a change, since the exact magnitude of the future threat cannot be precisely known.
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From page 94... ...
COUNTERFEIT DETERRENT FEATURES Ct .~ Threshold of Tolerance ._ ~ .~7 ~ , o Introduction of New Counterfeit Deterrence Features I -- - ~ Time / / / A_ A: ._ ._ ~ ~ Threshold of Tolerances ~ Introduction of New Counterfeit Deterrence Features At\ / ~\ · · If- · Time FIGURE 5-2 Case B: proactive strategy .
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From page 95... ...
One example, mentioned in the previous chapter, is the possibility of changing the location or width of the security thread, or the number of security threads, according to banknote denomination.
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From page 96... ...
The committee believes that if such devices were available, the public would accept them just as credit-card authentication is widely accepted. Simple systems can also be envisioned to render visible simple hidden features, such as ultraviolet fluorescent inks, infrared absorbing inks, and embedded special fibers.
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From page 97... ...
For example, the ability of law enforcement agents to track copied banknotes back to a specific copier would greatly assist forensic investigations of counterfeiting. Currently, there is no effective reward structure to provide incentives for the public's interception of a counterfeit note close to the initial distribution point.
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From page 98... ...
Nonetheless, 280 lithographic printed counterfeit 10,000 yen notes (~ $89 each) were recently discovered in the Osaka region.
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From page 99... ...
1993a. Discussion with Special Agent James Brown, U.S.
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