What Are Counterfeit Coins?
People have been faking and counterfeiting currency since ancient artisans first minted coins in 590 BC. Back then, the materials used to make various coinage were primitive, at best. This meant that is was pretty easy to duplicate coinage at the time. In modern day, counterfeiters make fake coins especially for the collecting marketplace due to the high values attached to certain coins.
Counterfeit coins are classified as any coin that is made without the consent of the issuing country. Other coins considered as counterfeits are those that are altered physical to look like other coins. This is seen a lot with banknotes as well. A practice of “washing” or “blanking” lower denomination bills and printing larger denominations on them, is a practice that has been around for ages. Over the years that currency has been in existence, dishonest people have improved methods of counterfeiting coins and banknotes. The methods get more and more unique and despite the intended use of these methods, counterfeits are actually quite fascinating. You need to be aware of them and what to look for, however, as to not be taken advantage of when buying.
A basic understanding of good practices when buying currency and an understanding of things to look for, helps protect you from fraud:
- Buy from reputable dealers and reputable marketplaces with some sort of buyer protection policy
- Meet friends in the numismatic community! This will help create your network of knowledgeable people to contact for help
- Be weary of coins sold at flea markets and pop up shops. A lot of these are reproductions or fakes
- If you think a coin or banknote is fake, get a second opinion on it before buying
Types of Counterfeit Coins
There are three types of counterfeit coins: struck, cast, and altered counterfeit coins.
Struck Counterfeits
Counterfeiters make struck counterfeit coins the same way a mint manufactures a genuine coin by a planchet between two coin dies in a coining press. The counterfeiter can create the coin dies by engraving them by hand, using the spark erosion method, a one-to-one transfer engraving lathe, the plating method, or the impact technique. These produce probably the best quality fake/ counterfeit coins, but is an extremely expensive process. It is also the most tedious means of reproducing a coin. This type of counterfeiting is usually seen with very high end coins worth thousands.
Cast Counterfeits
Like you would see in many counterfeit products, a mold can be made to reproduce a coin. A cast is form with an impression of the obverse and reverse of a certain coin. Metal, generally a composition mimicking that of the intended coin, is poured into the mold and creates a copy of the original coin. Counterfeiters like this method because this process does not destroy the original coin. Cast coins, due to typically having a metal content that is not correct, are the easiest counterfeit coins to detect. In a lot of cases however, a centrifuge will be used to create these coins, allowing for the molten metal to spread to the edge of the copy coin. This makes for a more accurate copy, but also a more difficult one to detect.
Altered, Changed and Doctored Coins
Altering a coin to look like a more expensive coin is the most simplistic way of counterfeiting. Similar to washing smaller denominations of their depictions and printing a larger denomination atop them, carving or modifying coins has been going on for a long time!
A common example of this type of modification is on the mintmark of the coin. Rare coins, like older dollar coins and wheat cents, can be worth thousands of dollars more due to what mint facility made the coin. So, skilled counterfeiters will add a mintmark, such as “CC” for Carson City or “S” for San Francisco, to a coin in order to fake its origin mint facility. This can increase a coins value many times over. Conversely, there are instances where a mintmark may be removed in order to accomplish the same counterfeiting goal. This has been seen with Peace Dollars and many Lincoln Pennies.
How to Detect Counterfeit Currency
You may not think of the scientific method from high school as a means to detect counterfeit coins, but with it may just give you some needed insight as to whether your coin is the “real deal” or a fake. These should include size, diameter, thickness, metal composition, weight, and specific gravity. Use a high precision caliper to measure the diameter and thickness of the coin. You can use a scale on your coins, which is a common practice among collectors. Different coins have differing weights so you will need an original to compare too, or you will need to reference the correct weight of the coin in question. These weights can be referenced on the US Mint’s website.
Another method of detecting a fake is with the use of a magnet. The United States only made one coin that contains steel, and that is the 1943 Lincoln Wheat Penny. (Reference that coin in this guide for more information.) If the coin does not contain steel, it should not be attracted to the magnet.
Next, take a look at the coin’s color and tone, compare this to an original or photos of an original for reference. There are some rare and historic coins that are counterfeited a lot more than others. “War Time” coins like steel pennies and older, more sought after coins, like the 1909-S VDB Lincoln Cent, have lots of fakes out there. These coins will generally be off in color in a lot of cases when it comes to counterfeits. Of course, focusing on graded coins when purchasing, really discounts the possibly of a counterfeit.
The US Mint has always produced currency under rigorous and structured standards. This means that if you inspect the coin or banknote under magnification, you should see vivid and detailed markings. Coins that have soft, light pressed letters are an indication of a counterfeit coin. If your coin is lacking in the correct details, light in the impression or shows details not normally on the original coin, you may have a counterfeit. I have taken coins to my local coin shop for a second opinion a few times!
Lastly, you can spot counterfeit coins and banknotes a lot easier through magnification. I suggest getting a microscope and a jeweler’s loupe (sometimes call “loop”), these are undoubtedly a necessity in collecting currency. Not only will a loupe allow you to see small details on non- counterfeit coins, but will help you spot fakes. These are sold all over the place, from local hobby shops to online sites, like Amazon and eBay. I also sell a cheap magnifier on my site VarietyErrors.com. Another great magnifier is a USB microscope. These are going to be more expensive ($50+), but are the best way to go. You can zoom in a lot more with these and interact with the image on you computer, tablet or phone.
In short, there are a lot of ways to spot altered and counterfeit coins. You do not want to get ripped off of course! Other than these tips, brush up on the coins you wish to collect and really get to know them. Familiarizing yourself is part of the hobby anyway! I personally love Lincoln Wheat Cents and Morgan Dollars. Although I usually buy graded coins now, I have spent tons of time diving deep into these coins background, mintage and details in order to avoid buying a counterfeit. Been there, done that!
The US mint has changed and improved its methods of producing coinage over the years, resulting in both different and easier ways of detecting counterfeit currency. The process of learning the extensive knowledge needed to detect counterfeits can take years. So, keep researching and familiarizing yourself with different kinds of coinage.
Unlike the first presses used to make coins, modern coin minting machinery is controlled by computers. This eliminates a lot of human error and makes it more difficult for counterfeiters to produce these coins. Even with the use of computers, automated machinery and hydraulic presses, the coin market sees more and more counterfeits each year. With some knowledge and lot of research, you can avoid purchasing counterfeit coins. Good luck!