Euro coin counterfeiting in 2008

[Arizona Coin Collector]

Hello

In reading the story below does the merchant
in Europe, ends up loosing his money, if the
bank determines that it is counterfeit?

Does a business in the United States loose
money, if what they return back to the bank
is counterfeit?

I see counterfeit coins a lot easier to pass off
since you do not have any security features
on a coin. Paper money has security features
that is easier to find like "water marks", or
hidden numbers, threads, colors, ect..

-------------------------------------------

FROM:
http://7thspace.com/headlines/301711/euro_coin_counterfeiting_in_2008.html

Euro coin counterfeiting in 2008

The total number of counterfeit euro coins removed from
circulation in 2008 was 195 900, down from 211 100 the
year before. While this development confirms the success
of the action to render euro coins safer for the users,
Member States should maintain and intensify efforts to
remove counterfeits from circulation. Two Commission
initiatives presented in 2008 to further improve the
fight against euro counterfeiting, were successfully
adopted by the Council in December: ensuring that
financial institutions authenticate euro coins and
banknotes before putting them back into circulation
and ensuring that medals and tokens are sufficiently
different from euro coins, so as to avoid potential
confusion of coin users.

For the Commission, it is encouraging to see that
Member States make efforts to remove counterfeits from
circulation. But these efforts need to be
intensified: With the adoption by the Council of
reinforced rules on the protection of the euro, the
euro and its users can be even better safeguarded
against counterfeiting and confusion. As a major
currency, the euro is exposed to counterfeiters' bad
intentions, but it is well protected and safe to use.

The fall in the number of counterfeit euro coins
removed from circulation in 2008 is 7% compared to
the year before. The number of 2-euro counterfeits
decreased by 15%, although this denomination remains
by far the most counterfeited euro coin. Counterfeit
coins of 50-cent and particularly 1-euro increased
strongly, by 28% and 51%, respectively.

The Commission considers that counterfeit euro
coins are, however, not a significant cause of
concern for the public. Indeed, the overall number
is very small by comparison to the total number of
around 15 billion genuine euro coins put into
circulation of the three highest denominations, with
a resulting ratio of 1 counterfeit for every 76 000
genuine coins. The proportion is even smaller
compared to the total number of circulating euro
coins: about 80 billion. The number of detected
counterfeits is also lower than the sum of
counterfeit coins in the euro area countries before
the introduction of the euro.

These counterfeit coins, while increasingly
sophisticated, should generally be rejected by
properly adjusted vending and other coin-operated
machines.

The progression in the number of counterfeit euro
coins removed from circulation reflects the efforts
Member States are making to implement Commission
Recommendation of 27 May 2005 concerning the
authentication of euro coins. This caused sharp
increases of counterfeits removed from circulation
in 2006 and 2007, thus making euro coins even safer
for users. However, the efforts to remove the
counterfeits vary among Member States. In 2008, the
decline in the numbers of counterfeits removed, was
recorded mainly in those Member States which are
still in the process of implementing the Commission
Recommendation. EU-wide implementation of such
procedures is needed in the future to fight
effectively against euro coin counterfeiting and to
share the efforts evenly among Member States.

Law enforcement is also successful in fighting euro
coin counterfeiting: according to information
provided by competent national authorities, one more
illegal mint was dismantled in 2008, in Austria.
This brings to 15 the total number of illegal mints
discovered since the introduction of the euro
currency in 2002. In addition, the Italian
Carabinieri marked an important success against the
distribution network of a major counterfeiting
class. In these and other operations by law
enforcement, around 11 000 counterfeit euro coins
were seized in 2008 before coming into circulation.

As far as counterfeit euro banknotes are concerned,
around 666 000 pieces were withdrawn from
circulation in 2008, as announced today by the
European Central Bank.

Policy developments in 2008

In order to strengthen the protection of the euro,
the Commission proposed a number of legislative
initiatives. Based on these proposals, four
amendments to existing legislation were adopted by
the Council in December 2008.

Two amendments concern the Regulations
(EC) 1338/2001 and 1339/2001 (on the protection of
the euro banknotes and coins) and will make it
mandatory for financial institutions to ensure that
euro coins and banknotes are authentic before
putting them back into circulation. Two further
amendments concern the Regulations (EC) 2182/2004
and 2183/2001, ensuring that medals and tokens are
sufficiently different from euro coins, so as to
avoid potential confusion. The amendments specify
that distinctive elements of the designs on legal
tender euro coins should not be reproduced on
medals and tokens.

The Commission, in cooperation with Europol, the
European Central Bank and experts from Austria,
Belgium, France, Germany, Italy and Interpol has
also produced a booklet to support police officers
across Europe, entitled "Counterfeit euro? What
to do". The document helps recognising counterfeits
and outlines the first measures to take when first
discovering a counterfeit euro.

Background

In protecting the euro against counterfeiting the
Commission collaborates closely with its
partners: the European Central Bank (ECB), Europol,
Interpol and the competent national authorities.

In line with Regulation (EC) 1338/2001, the European
Technical & Scientific Centre (ETSC) carries out the
analysis and classification of new stamped counterfeit
euro coins. The Council decided, in December 2003,
that the Commission ensures the functioning of the
ETSC and the co-ordination of the activities of the
competent technical authorities to protect the euro
coins against counterfeiting. In October 2004, the
Commission decided to establish formally the ETSC in
the European Anti-Fraud Office (OLAF), using the
technical equipment and installations of the
Monnaie de Paris.

The Commission is also responsible for the
implementation of the 'Pericles' programme for
training and technical assistance for the protection
of the euro banknotes and coins against
counterfeiting. The Commission prepares legislative
initiatives and monitors the implementation of the
relevant legislation.

The European Central Bank (ECB) performs a technical
analysis of counterfeit euro banknotes of a new
type at the Counterfeit Analysis Centre located on
the premises of the ECB, stores the technical and
statistical data on counterfeit banknotes and coins
in a central database, also located at the ECB, and
disseminates the relevant technical and statistical
information to all those involved in combating
counterfeiting.

Europol supports the Member States' law enforcement
services in combating serious organised crime by
facilitating the exchange of information and
providing operational and strategic analysis. In
addition, it provides expertise and technical
support for investigations and operations carried
out by the Member States' law enforcement services
within the EU. Europol maintains a central database
for law enforcement information relating to euro
counterfeiting and also uses the technical database
located at the ECB. Europol provides the means for
financing police investigations in the domain of
euro counterfeiting and will become the EU central
office for combating euro counterfeiting, when
Member States formally assign this responsibility.

http://ec.europa.eu/anti_fraud/pages_euro/index_en.html

..