Fall in US Counterfeits, Says New Report

Financial authorities remain concerned about counterfeiting US currency; however, recent studies suggest a declining trend in the circulation of fake banknotes. A new report by Ruth Judson and published by the Federal Reserve – Estimating the Volume of Counterfeit US Currency in Circulation – provides insights into counterfeit US dollar circulation and its economic impact.

The scope of counterfeiting

The US dollar is one of the most widely used currencies worldwide, with circa. $2.3 trillion in circulation at the end of 2023. However, not all this currency remains within the US; estimates suggest that half to twothirds of all US banknotes are held outside the country.

In 2023, the US Secret Service recorded $102 million in counterfeit currency passed, but the report estimates that only about $15 million in counterfeit notes were actively circulating at any given time. This equates to roughly one fake note for every 80,000 genuine notes – a significant improvement from previous estimates.