Instances of counterfeiting currency nearly tripled in Ottawa between 2012 and 2013, a number that might signal a last push by criminals to counterfeit paper bank notes before they are completely replaced by new, more secure polymer notes.
There were 162 reported instances of counterfeit currency in Ottawa in 2013, compared to 66 in 2012, according to data compiled by Ottawa police. The wards with the highest instances in 2013 were Bay, with 21, followed by Somerset, with 18.
Those rates matched national numbers by the RCMP, which saw a slight increase in the number of counterfeit notes passed in 2013 compared to 2012.
The introduction of polymer banknotes in Canada in late 2012 and 2013 may factor in to the rise. Marie Terrien, a senior analyst at the Bank of Canada, said the new notes have pushed would-be counterfeiters to target old paper notes, as the security features on the polymer notes are harder to reproduce.
Out of a million notes, 29 were counterfeits in 2013, Terrien said. Although she declined to comment on the Ottawa data beyond saying counterfeiting wasn’t an issue in Ottawa, she said the rate of counterfeiting of polymer notes compared to paper ones was very small.
“Once we introduce new bank notes, the counterfeiters usually target the outgoing series. That’s what we’re seeing right now. The vast majority of counterfeiting is on paper bank notes,” she said.
As the bank introduces polymer notes, the paper ones are taken out of circulation, which means there’s a limit on how much longer paper notes can be counterfeited, Terrien said.
“Pretty soon we’ll just be left with polymer notes,” she said.
Though the number of counterfeiting incidents changed dramatically, the rate of solvency did not. In both 2012 and 2013, counterfeiting was the second least-solved crime in Ottawa, second only to failure to stop and remain. Out of the 162 instances in 2013, 13 were solved, a solvency rate of about eight per cent. In 2012 the solvency rate was about six per cent.
Ronald Melchers, a professor of criminology at the University of Ottawa, said the nature of how counterfeiting is reported to police makes it harder to solve.
“[Police] report instances when a bank or business reports a counterfeit bill, and not necessarily when they’re investigating,” Melchers said.
Another important note about the numbers, Melchers said, is that the total number of instances is comparatively small, making changes harder to track. While there were 162 cases of counterfeiting in 2013, by comparison there were over 2000 instances of breaking and entering. Melchers said when categories with small numbers like counterfeiting see changes, they are usually much more noticeable.
“They go up or down … those kinds of things vary. When you track numbers that small, we don’t draw conclusion, really,” he said.
Instances of counterfeiting can spike in certain seasons, according to Christine Leadman, executive director of the Downtown Bank Street Business Improvement Area, which is in the Somerset ward, one of the wards with the highest number of reported counterfeits.
The Ottawa police data is divided by year, which doesn’t allow for an analysis by season. But anecdotally, Leadman said, she’s seen instances of counterfeiting spike in the holiday season.
“It’s important that (businesses are) more attentive, (and) that the part-time and seasonal staff they hire are trained as well,” Leadman said.
Terrien said it’s important for consumers to check if bills they are handed are counterfeit, and if they are hand them back immediately.
“Don’t try to pass it somewhere else, because that’s illegal. That’s knowingly passing a counterfeit,” she said.
“The best protection is to check your note,” she said.