Inside the Game of Deception: Counterfeiters and Detectives Battling Over Fake Bank Notes in the 1990s

1.??? Overview

Investigation techniques from the 1990s can prove highly informative for modern-day investigators dealing with today's sophisticated white-collar crimes. Behind every technological advance, the essential tradecraft in combating counterfeiting remains playing catchup. Without question, the criminal element has had time to learn lessons and adapt; however, law enforcement tools and methods continue to advance and afford new opportunities to gain the upper hand[1]. Yet, technology's dynamic nature can help criminals and detectives, each trying to outplay the other by constantly reworking their methods[2]. Understanding how people have approached past methods and tradecrafts can help the modern investigator understand what tactics may be used and consider appropriate countermeasures.

2.??? Introduction

Counterfeiting has been a cat-and-mouse game since banknotes were first printed, with counterfeiters and law enforcement constantly trying to outsmart each other. During the 1990s, it became clear that offset lithographic printing[3] by counterfeiters had made Bank of England (aka Bank) notes, especially the ￡20, a desirable target[4], but it was not exclusive; the counterfeiting included other currencies such as the US dollars[5]. The modus operandi?to?avoid?detection that?counterfeiters?resorted?to?included?using?burner phones[6], nicknames, pagers, and anti-surveillance. In this article, and the ones to follow, we?analyse?what?detectives?did?to crack these operations, from human intelligence?(HUMINT)?gathering?to?interceptions?of communications?and even?some critical?covert entries to secure?intelligence and evidence.

3.??? The Art and Science of Counterfeiting with Offset Lithography

Offset lithography involves a quality image printing process on paper by transferring ink from a plate. The most preferred technique employed by counterfeiters during the 1990s and early 2000s, this technique, supported by others, can precisely replicate everything in banknotes, from colour to minute details. Hence, it is considered highly effective in terms of appearance replication.

Forgers checked each note characteristic and, where applicable, produced security features such as watermarks, serial numbers, and pattern details. This would include producing forged plates and playing around with speciality inks and methods to insert the metal strip[7] to achieve a more accurate-looking note. Additionally, forgers attempted to make it feel and appear like actual banknote paper made from cotton.

Counterfeiters usually wrap the finished counterfeit notes in original wrappings from those received from each shipment of legitimate or suspicious paper suppliers. They used this technique for several strategic reasons. First, the actual packaging authenticates the fake notes[8]. Visual wrappings can often get the counterfeit currency past preliminary inspections since the wrappings' look suggests a credible source. This little layer of deception frequently becomes necessary for distribution. Besides that, original wrappings allow for a very discreet and practical way of packaging and transporting significant amounts of counterfeit notes. These packages look normal from the outside, commonly disguised as widely used paper shipments to camouflage their contents and enable counterfeiters to move their products without suspicion.

4.??? Techniques for detecting and tracking Counterfeit Notes

Although counterfeiters may think that rewrapping helps them, it provides excellent forensic evidence. Fingerprint samples can be collected from wrappings and analysed to identify people participating in the counterfeiting ring. Moreover, original paper wrappings may indicate a counterfeiter's proximity to material sources. In that respect, detectives could trace key figures closer to the core of the operation.

The Bank of England uses a system to allocate "indicative" numbers to newly discovered counterfeit banknotes to track and connect counterfeits that were likely produced together. In the 1990s, the Bank of England and the National Crime Intelligence Service Counterfeit Currency Unit (NCIS CCU) were responsible for maintaining records and analysing counterfeit currency detected in the UK[9].

The indicative number typically includes a letter prefix indicating the series and denomination followed by an incremented numerical sequence for each new counterfeit type. Additional suffixes denote variations or updates to a known type. For example, an indicative number might look like "E20/12" for a new version of the “E” series ￡20 counterfeit.

This system allows the Bank to group counterfeits with similar printing characteristics, likely from the same source, track the spread and evolution of counterfeit types across different geographic areas, and analyse trends in counterfeiting techniques over time.

The Bank worked closely with law enforcement, providing information on the latest counterfeit indicators to aid detection. However, full details of the indicative numbering system are not made public to avoid assisting the criminal fraternity.

5.??? Tradecraft of the Counterfeiter

One of the common methodologies used by counterfeiters to avoid being tracked was the use of burner phones[10]. This allowed them to discard any device that would lead the police to them whenever this became necessary. The pagers were also helpful in providing them with an easy means of contacting each other without using real-time conversations that could be easily intercepted. Moreover, they often used nicknames instead of real names to anonymise messages further. Advanced counterfeiters used anti-surveillance techniques that made tracking even more difficult for the authorities, such as counter-surveillance driving patterns and encrypted messages.

Given the level of sophistication of counterfeit operations, law enforcement faced significant challenges in detecting and preventing the criminals responsible. However, while the counterfeit notes were of exceptionally high quality, subtle differences in print quality, security features, and paper feel distinguished them from genuine notes[11]. One key identifying feature was the serial number, with some specific counterfeit notes ending with the same two digits, although other serial numbers were also used to avoid easy detection[12].

The high quality of these counterfeits created substantial difficulties for effective detection. Many counterfeit detection machines struggled to identify these notes as fake, and even experienced cash handlers were sometimes fooled by their authenticity[13]. This posed significant challenges for the Bank of England and businesses, as conventional detection methods often proved inadequate[14].

The forged banknotes were of high quality, and the Bank of England issued unique guidance that could help verify suspect banknotes[15]. Further, the seriousness of the counterfeit note problem contributed to the Bank's fast-tracking the introduction of new features and designs for future banknotes, adding to the evolution of currency security. This cat-and-mouse game has continued between the counterfeiters and the authorities, where the advantage would swing back and forth between each party through new security features, new techniques of forgery, or improved methods of investigation.

6.??? The Detective’s Toolbox

Other subtle indications of forgery investigated by detectives involved in cases of counterfeit notes included inconsistencies in the ink colour and watermarks, as well as uneven textures. The detectors would need specialised tools to help them pinpoint minor flaws, using magnification lenses, detector pens[16], and ultraviolet light to differentiate the fake note from the real one. These methods of distinguishing between fake and real were crucial in assessing the validity of suspected counterfeit notes and presented relevant evidence for prosecution.

Law enforcement agencies also utilised undercover and proactive techniques in the fight against counterfeiting operations. Detectives utilised vehicle trackers to trace the movement of the suspects while coming up with crucial intelligence through HUMINT sources that involved informants and the infiltration of undercover agents in counterfeiting circles. Other effective methods included communications intercepts: investigators wiretapped phone conversations, tracked paging communications, and followed the use of disposable phones to reconstruct the movements and associations of the counterfeiter. Having identified suspects and secured proper legal authority, detectives often performed surreptitious entries of probable counterfeiting sites, collecting intelligence and evidence without letting the subject know.

In addition to the fingerprint evidence from the wrappings, the price at which an individual bought counterfeit notes could indicate proximity to a printing source, thus helping investigators narrow their list of suspects of key figures in the counterfeit ring[17]. Physical evidence and financial analysis were combined to build solid cases against the actors.

7.??? Challenges and Breakthroughs in Counterfeit Investigations

Indeed, the late 1990s and early 2000s were the critical junctures in the history of currency counterfeiting, which urged the Bank of England to introduce a new series of banknotes. At that time, a very 'sophisticated' counterfeit ￡20 note that seemed hard to distinguish would appear. Indeed, the quality of the print of this counterfeit was as high as that of genuine banknotes.

The fantastic thing about this forgery was that it reproduced all security features, such as watermarks and metallic threads, probably two of the most critical factors determining whether a banknote is legitimate. Another characteristic of the paper was that, upon handling it, it felt like any other genuine banknote, further frustrating attempts to find and confiscate the fake money.

Such a magnitude of detail attested to a greater sophistication gradually creeping into counterfeiting operations and the unending challenge faced by currency issuers and law enforcement agencies as they struggled to stay ahead of this menace.

This high-quality counterfeit brought the constant race to innovate banknote security features and detection methods to the forefront. It also highlighted how important it was to raise awareness and educate the public about the warning signs of counterfeit currency, mainly since identifying these sophisticated fakes was challenging even with some of the most reliable detection methods.

8.??? Case Studies of Major Counterfeit Operations and Arrests

Some of the decade's most notorious counterfeit rings were brought to light through surveillance, HUMINT, forensic analysis, and creative investigative techniques. A sample of these are listed below:

The ￡50 Million Counterfeiting Gang (1998)

During the 1990s, a significant counterfeiting operation in Britain produced approximately ￡50 million in fake ￡20 banknotes. This gang was responsible for producing about two-thirds of all counterfeit money in circulation in the UK during that period. The scale and impact of this operation make it a significant case study for counterfeit currency operations in the UK. It's worth noting that this case demonstrates the substantial economic impact of counterfeiting operations, and the challenges law enforcement and financial institutions faced in combating such large-scale fraud[18].

￡20 note changes to beat forgers (1999)

Counterfeiters were caught running an illegal money printing factory in Kent in a joint operation by the National Crime Squad and the National Criminal Intelligence Service. During Operation Rotary, police recovered printing, computer equipment, and enough ink and paper to make counterfeit ￡20 notes worth ￡2.1m. The gang had already produced and distributed ￡100,000 worth, while a further ￡40,000 was waiting for collection. Police described the counterfeit notes as high quality and the forgers as "top of the line"[19].

Counterfeiter gets seven-year stretch (2001)

Southwark Crown Court, London, heard that a small, rented workshop in Erith was an Aladdin's Cave of counterfeit banknotes and documents. Over nearly nine years, the offenders forged Bank of England notes of every denomination, Bank of Ireland and Scotland notes, Spanish Pesetas, and US dollars, helping to flood the economy with ￡10m of fake currency[20].

These events illustrate the challenges law enforcement faced with increasingly sophisticated counterfeiters. Law enforcement adapted investigative tactics as technology improved to meet new counterfeiting methods.

9.??? Lasting Impact and Lessons Learned

The vulnerabilities exploited by counterfeiters in the 1990s led to the further development of banknote design. Modern banknotes now involve complicated features, such as holograms, micro printing, and unique polymers, making counterfeiting banknotes much more difficult.

The detective work of the 1990s finally laid the bedrock for today's forensic and intelligence-based approaches to fighting counterfeit currency. Means such as HUMINT, covert operations, and fingerprint analyses on materials remain central to modern-day investigations. These undertakings underpin the constant need for innovation to keep up with counterfeiters in a constantly evolving field and emphasise the need to combine modern-day technological solutions with the pragmatic approach of an experienced investigator.

10. Conclusion

The Currency Wars of the 1990s underlined what will always be a continuous game of cheating and counter-swindling between the bad people out there and the police. Counterfeiters used burner phones, pagers, and anti-surveillance techniques in those days, while the detectives used HUMINT and covert operations and technological and innovative investigative techniques to counter that. As this article has explored, the constant push to update on both sides has driven modern approaches toward currency security and investigative work. In the next series of articles, we shall dive deeper into the 1990s modus operandi of law enforcement and counterfeiters, exposing other strategies and lessons that have shaped the current war against financial crimes and brought practices such as HUMINT and OSINT into the heart of the fight against crime.

[1] Police Professional |? Criminals ‘adapting’ to evade law enforcement and exploit global pandemic. (n.d.). https://policeprofessional.com/news/criminals-adapting-to-evade-law-enforcement-and-exploit-global-pandemic/ (Accessed November 14, 2024)

[2] Cognyte. (2024, August 22). Law enforcement technology - the future is here. https://www.cognyte.com/resources/law-enforcement-technology/ (Accessed November 14, 2024)

[3] Contributor, T. (2019, January 15). offset printing (offset lithography). WhatIs. https://www.techtarget.com/whatis/definition/offset-printing-offset-lithography#:~:text= (Accessed November 14, 2024)

[4] Withdrawn banknotes. (n.d.). Bank of England. https://www.bankofengland.co.uk/banknotes/withdrawn-banknotes ?(Accessed November 14, 2024)

[5] Independent. (1994, May 13). Forgers “had printed dollars 4.5m” | The Independent. The Independent. https://www.independent.co.uk/news/uk/forgers-had-printed-dollars-4-5m-1435768.html (Accessed November 14, 2024)

[6] Felton, J. (2024, January 23). Burner phones: Are they really untraceable? IFLScience. https://www.iflscience.com/burner-phones-are-they-really-untraceable-72559 (Accessed November 14, 2024)

[7] TAKE a CLOSER LOOK - PAPER BANKNOTES. (n.d.). https://www.bankofengland.co.uk/-/media/boe/files/banknotes/take-a-closer-look-paper-banknotes.pdf (Accessed November 14, 2024)

[8] Get extra security with the Banknote Checking Scheme. (n.d.). National Hair & Beauty Federation. https://www.nhbf.co.uk/news-and-blogs/blog/get-extra-security-with-the-banknote-checking-scheme/ (Accessed November 14, 2024)

[9] The National Crime Intelligence Service (NCIS) was a UK government agency responsible for intelligence and criminal investigations, focusing on serious and organised crime. Established in 1992, it played a central role in gathering and analysing intelligence to combat various criminal activities, including drug trafficking, human trafficking, and organised economic crime, such as counterfeit currency.

The NCIS had a specialised team dedicated to counterfeit currency investigations, focusing on identifying and disrupting criminal networks involved in producing and distributing fake banknotes, namely the NCIS CCU. Their activities ranged from intelligence gathering to supporting local police and other agencies with technical and strategic expertise in counterfeit-related cases.,

In 2006, the NCIS was merged with several other organisations, including the National Criminal Intelligence Service, to form the Serious Organised Crime Agency (SOCA). SOCA then assumed responsibility for the NCIS's former operations, including the counterfeit currency team, broadening its scope to include other aspects of organised crime. SOCA itself was later dissolved in 2013, and its functions were transferred to the newly created National Crime Agency (NCA), which continues to address counterfeit currency and other serious crimes as part of its broader remit.

[10] Felton, J. (2024, January 23). Burner phones: Are they really untraceable? IFLScience. https://www.iflscience.com/burner-phones-are-they-really-untraceable-72559 (Accessed November 14, 2024)

[11] How to spot a fake ￡20 note. (n.d.). Convenience Store. https://www.conveniencestore.co.uk/advice/how-to-spot-a-fake-20-note/665059.article ?(Accessed November 14, 2024)

[12] Banknotes. (2024, August 12). Bank of England. https://www.bankofengland.co.uk/banknotes (Accessed November 14, 2024)

[13] Get extra security with the Banknote Checking Scheme. (n.d.). National Hair & Beauty Federation. https://www.nhbf.co.uk/news-and-blogs/blog/get-extra-security-with-the-banknote-checking-scheme/ (Accessed November 14, 2024)

[14] Counterfeit banknotes. (n.d.-b). Bank of England. https://www.bankofengland.co.uk/banknotes/counterfeit-banknotes (Accessed November 14, 2024)

[15] Panlogic. (n.d.). Counterfeit currency. National Crime Agency. https://www.nationalcrimeagency.gov.uk/what-we-do/how-we-work/providing-specialist-capabilities-for-law-enforcement/counterfeit-currency (Accessed November 14, 2024)

[16] Counterfeit Money Detection Pen | Money Pen. (n.d.-b). https://www.crimepreventionproducts.co.uk/counterfeit-detector/chaperone-counterfeit-money-detector-pen#:~:text= (Accessed November 14, 2024)

[17] How to check your banknotes. (n.d.). Bank of England. https://www.bankofengland.co.uk/banknotes/counterfeit-banknotes/how-to-check-your-banknotes (Accessed November 14, 2024)

[18] Woodward, W. (1999, December 23). Counterfeiters printed ￡50m in fake notes. The Guardian. https://www.theguardian.com/uk/1999/dec/23/willwoodward (Accessed November 14, 2024)

[19] Bennetto, J. (1999, February 13). pounds 20 note changes to beat forgers | The Independent. The Independent. https://www.independent.co.uk/news/pounds-20-note-changes-to-beat-forgers-1070441.html (Accessed November 14, 2024)

[20] News Shopper Staff. (2001, April 26). Counterfeiter gets seven year stretch. News Shopper. https://www.newsshopper.co.uk/news/6419128.counterfeiter-gets-seven-year-stretch/ (Accessed November 14, 2024)

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