Why are we fascinated by tales of counterfeiting? Is it the fantasy of having our own personal “money tree” in the backyard? Or are we intrigued by a crime whose cunning perpetrators try to beat the system? Every day, we all use various kinds of metal discs and pieces of paper or plastic, trusting that they are genuine and that they are worth the “value” displayed. The craftsmanship and technical wizardry employed to ensure that these expectations are met are cutting edge. Thus, the criminals who try to replicate these objects for their own profit are usually not the common-or-garden variety. Counterfeiting calls for ingenuity and talent, and it touches something we all tend to take for granted—the money in our pockets. And it can personally affect any one of us when we least expect it. During our fast-paced day, how often do we slow down to check the change we receive at shops, restaurants, or even the local corner store?
While the focus of this book is on counterfeiting in Canada, it has a wider reach. We begin with some history of the crime—a crime as old as money itself. We look at its sometimes gruesome punishments and at the reasons why counterfeiting is not a victimless crime. We also explore the techniques employed to fight it through the centuries, discuss the “arms race” between the issuers of money and the relentless counterfeiters, and delve into cases of official counterfeiting.
Turning to the Canadian experience, we examine the development of banking in North America and the concomitant rise of the counterfeiters who were quick to take advantage of the introduction of paper currency. We also highlight some of the riveting counterfeiting cases of the past and their colourful characters, both the criminals themselves and their police adversaries. Moving into modern times, we examine the activities of the Bank of Canada and the Royal Canadian Mounted Police (RCMP), who are on the front line in the battle to maintain confidence in the currency. Major counterfeiting busts by the RCMP are highlighted. Since forgers don’t respect national frontiers, we also look at international efforts to fight counterfeiting. Finally, we consider frauds involving credit and debit cards and electronic payment systems—the new “Wild West” of financial crime.
We hope that the reader will not only enjoy this account but will also gain an appreciation for the serious nature of the crime and a better understanding of the constant struggle waged by the issuers of payment instruments to protect the money in our pockets.