Wollongong and the south coast of New South Wales is undergoing a surge of counterfeit banknotes in circulation and the quantities involved make it obvious that this is a " sting " operation, probably master minded by a bikie gang.
In particular, fake $50 notes are being used to either make small purchases which generate a lot of change, or to buy expensive items of clothing which can be later turned into real cash at Sunday markets. The area has been inundated by a host of shoppers of both genders and a range of ages to gain the element of surprise.
One of the problems is that these counterfeit notes are of very good quality. It takes a careful examination of the watermark to detect the difference from the real thing and often these forgeries make their way into banks before they are detected. Unfortunately, the unlucky shopkeeper suffers the financial loss because the notes are seized by the police.
This south coast raid is probably now over. The tactic is to pass a lot of notes very quickly - and to disappear once the alarm is raised. At the moment, anybody offering a fifty dollar note in this area would be viewed with great suspicion. It is also likely that those scammed may remain silent, tuck the counterfeit notes away until the fuss dies down - and then try and make good their loss by quietly easing them back into the market to unsuspecting shoppers.
The problem is that this age of ever increasing technology is giving forgers an edge. The quality of printing equipment linked to the power of the computer is capable of delivering a very reasonable facsimile at an incredibly low cost. These latest notes are even printed on polymer paper and they have a crude watermark.
The fine line between the safety features woven into banknotes by the mint and the expertise available to forgers is ever closing. It is even possible that should a clash of nations occur, an enemy may seek to discredit the currency of a nation they oppose by flooding the market with fake banknotes. That was certainly a tactic that made an appearance during the second world war.
All this is grist to the mill of those economists who seek to do away with printed money. There is a school of thought that suggests that our biggest banknote should be the five dollar bill, and that and coins be used for those small everyday purchases over the counter at the corner store. All higher value purchases would be by way of one of the payment systems encrypted in the cards we carry or embedded in our personal Smartphone. The reality of exchanging money from one mobile phone to another is already knocking on the door.
That would strike a mortal blow to the " black " economy. The amount of GST tax dodged in the cash economy is legion and once those transactions are forced onto an electronic circuit - they leave footprints ! There seems no doubt that Treasury would welcome the withdrawal of banknotes above five dollars and the tax bonanza that would deliver.
In the interim we are faced with a dilemma. Stolen credit transaction cards are a risk but effective countermeasures are coming into force. Should a suspicious transaction trigger alarm a text message is sent to the card owners phone - requiring validation. Risk will never be totally eliminated, , but the march of technology is closing the gap.
Sadly, what we thought to be the ultimate safety - paying in cash - no longer delivers the certainty of a gentler age !
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