Counterfeit $50, $100 banknotes create panic in Turkish markets

Panic over counterfeit $50 and $100 notes disseminated in Türkiye, following a notification issued by the Banks Association of Türkiye (TBB), setting all banks on high alert.

While counterfeit $50 notes are widely used in Istanbul, many fraudulent attempts are also reported in Ankara with $100 notes.

An internal memo circulated within a bank based on a notification from the TBB revealed fraudulent activities involving counterfeit $50 banknotes. According to economy-focused bigpara.com, the memo highlighted the TBB’s letter, which warned of fraud incidents involving undetectable dollar notes that had already occurred in several branches.

Information has been received regarding fraud incidents in several branches. These counterfeit banknotes are capable of passing through currency-counting machines. Efforts to update the bank’s currency-counting machines are ongoing. Branches are advised to exercise caution during physical $50 banknote transactions and take necessary precautions.

Outstandingly undistinctive banknotes, passing all detection systems

At a private bank, a fraud attempt involving counterfeit $50 banknotes was narrowly thwarted. The incident revealed that the fraudulent notes passed through both currency counting machines and ultraviolet light checks, only to be detected by the keen eye of a bank employee.

Mustafa Unver, President of the Authorized Money Changers Association, stated that the fabrication of counterfeit banknotes is most common in the Middle East, Asia and the Balkans. He also noted that counterfeiters typically introduce these notes into the market via Istanbul’s Grand Bazaar, a key distribution point.

Regarding counterfeit notes passing through banknote counters, Unver explained:

Incidents have been occurring for about one to one-and-a-half months, but the market is just becoming aware of it. While this doesn’t happen in every bank, most banks acquire currency counters through rental agreements. The companies providing these machines often update them only after receiving complaints from banks about fraud incidents.

$100 banknotes less commonly targeted

Unver recalled a similar situation three to four years ago involving €200 and €500 banknotes, noting, “Around 1.7 million counterfeit euros were distributed through the Grand Bazaar and gradually spread across Anatolia.”

According to Unver, counterfeit $100 notes have also been detected, including in Ankara, though the issue is primarily associated with $50 notes.

“The higher the value of the note, the more likely it is to undergo thorough scrutiny. The $50 note, however, often escapes such rigorous checks,” Unver explained, detailing the fraud strategy.