During the first year of circulation of the euro, 2,339 counterfeit coins were detected in circulation and removed, mainly by National Central Banks. These counterfeits were of 50c, 1€ and 2€ denominations. This compares to a total number of 39.95 billion euro coins in circulation at the end of 2002. To put these figures in context, the total number of counterfeit euro coins found in circulation and removed in 2002 is less than one tenth of the number of counterfeit coins of legacy currencies detected and reported by euro area National Central Banks in 2001. These figures demonstrate one of the merits of the very high standards and technical characteristics used for the minting of euro coins.

The breakdown of counterfeit euro coins found in circulation in 2002:

Denomination	50 cent	1 €	2 €	Total
Counterfeits	28	1,281	1,030	2,339

Of the counterfeits removed from circulation, 1,584 were minted using high technology methods (stamped counterfeits). These have been analysed and classified by the European Technical and Scientific Centre (ETSC). The ETSC created eleven classes of these coins, corresponding to different counterfeiting production processes. These counterfeit coins should generally be rejected by properly functioning vending and other coin-operated machines.

Moreover, the Italian authorities announced that they dismantled two illegal workshops in 2002 and seized over 70,000 counterfeit coins, mainly 50c and 1€ denominations, before they could be put into circulation. They also announced the seizure of material and tooling which could be used to mint counterfeit 1€ coins.

The number of counterfeited euro banknotes is also very low. The European Central Bank announced today that 167,118 counterfeit banknotes were removed from circulation during 2002 (21,965 during the first half and 145,153 during the second half of the year).

Background

The fight against counterfeit euro coins is coordinated by the independent European Anti-Fraud Office (OLAF). OLAF works closely with the European Central Bank, Europol and the Competent National Authorities.

The European Technical and Scientific Centre (ETSC) was created in October 2001, because of the need for closer coordination among Member States to protect euro coins against counterfeiting. Based on an agreement by the Council of Ministers, the ETSC is temporarily hosted by the French Mint and administratively managed by the European Commission/OLAF. Its primary mission is to conduct technical and scientific analysis of stamped counterfeits and classification at European level together with Member States, to which it provides technical advice, assistance and training. The ETSC also keeps and maintains a number of registers useful in the fight against counterfeiting and collaborates closely with the coin-operated machine industry in the prevention of fraud in vending and other relevant machines.

[EuroTracer's Comment: It is astonishing that 1,021 of the discovered 1,030 counterfeit 2€ coins have been found in Germany, but only 11 out of 1,281 1€ coins, as was reported on 2003-01-23 by the German Bundesbank.]

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