E3S Web of Conferences 491, 02020 (2024) https://doi.org/10.

1051/e3sconf/202449102020
ICECS'24

Fake Currency Detection

S.Sweetline Shamini1*, G.Nandhini2, R.S.Varshini3 and T.Dharini4

1
Assistant Profressor, Department of Electronics & Communication Engineering,
Sri Sai Ram institute of TechnologyChennai,Tamilnadu,India
2
Student, Department of Electronics & Communication Engineering,
Sri Sai Ram institute of Technology,Chennai,Tamilnadu,India,
3
Student, Department of Electronics & Communication Engineering,
Sri Sai Ram institute of TechnologyChennai,Tamilnadu,India,
4
Student, Department of Electronics & Communication Engineering, Sri Sai Ram institute of
Technology,Chennai,Tamilnadu,India,

Abstract. Due to the great technological developments in the field of color

printing in the past few years, it is becoming increasingly recognized that
counterfeiting is a serious problem. It used to be possible and very simple
for anyone to quickly prepare and print counterfeit currency notes using a
computer and a laser printer at homes or places of employment. In the past,
only printing houses had these facilities. The most crucial issue is now how
to accurately distinguish fake currency from real currency using automatic
machines. Almost all nations struggle greatly with the issue of counterfeit
currency notes. But since counterfeiting has become such a pressing issue
in India, it is thought to be the most serious issue there. Therefore, it is
necessary to create a module that will aid in the quick and efficient
recognition and detection of paper currency notes. An approach for the
identification and verification of Indian currency is described in this
proposed system. The authenticity of the currency will be verified using
image processing methods, regardless of whether it is genuine.

1 Introduction
Counterfeiting is the production of fraudulent banknotes forprofit. Considering money has
value and replicating it requires a substantial amount of technical knowledge, counterfeiting
is distinguished from other forms of falsification and is handled as a criminal offense.
Counterfeiting is the oldest approach used by counterfeiters to steal money from people
who are unaware about it.Counterfeit Currency Notes can be viewed as "economic
terrorism" perpetrated by outside channels in order to harm economic
growth.Theexploitation of a country’s economic growth by official or non-official entities
takes the form of economic terrorism. The spread of Fake notes puts Nation's economy in
danger.Largescale use of counterfeit money raises the circulating quantity of currency,
which might result in a limited supply for commodities and products. A decrease in supply
as a result of the increase in demand raises the cost of the products. As a result, currencies

*
Correspondingauthor :srisaitechnology@gmail.com

© The Authors, published by EDP Sciences. This is an open access article distributed under the terms of the Creative
Commons Attribution License 4.0 (https://creativecommons.org/licenses/by/4.0/).
E3S Web of Conferences 491, 02020 (2024) https://doi.org/10.1051/e3sconf/202449102020
ICECS'24

devalue.Another problem that arises when bankers discard fraudulent notes and don't cover
losses is their non-reimbursement policy. Loss of consumer trust, unlawful goods
stocking etc. are some additional repercussions of illegal money.
Money counterfeiting is an ongoing problem across antiquity and is frequently referred
to as the "second oldest trade" in the world. The majority of the time, classical scammers
are people or even an organization who do it for financial gain. Yet, anew-phenomena
emerged in contemporary history: nations that were engaged in printing counterfeit money
to weaken the economies of their adversaries. The issuance and distribution of FICN assists
terrorist groups who target India in two ways. First, it harms Nation's economy, and second,
the money made out of it is then used to finance covert operations against India. The same
funds are allegedly then used support terrorist organizations in the country.Since
Counterfeiting majorly has an effect on a nation's economic and financial development, it is
essential to detect fake currencies. In the proposed system, a website is designed to detect
the fake currencies. The methodology consists of a variety of elements and methods, which
include image processing, edge detection, segmentation of images, drawing out
characteristics, and image as well. Python-based methods for image processing are
addressed with the goal to verify the requirements of counterfeit currency. Image
processing involves adjusting an image's characteristics to ensure its evident information is
increased for human analysis and research. The test result will reveal how much the
currency is genuine or fake.

2. Literature Survey
With the aid of the SVM algorithm, the system suggested here compares the features of
the picture and determines whether it is real or fake [1]. The detection of fake Indian
currency notes employing computational imaging is described here. Three key
characteristics of currency notes were considered in this module: the implicit image of the
currency note, Reserve Bank of India logo in the middle, and the denomination number
with the rupee symbol on the colored portion of the currency note. They had utilized an
approach that finds fake currency notes using these three features [2].This has a new
method to improvise the Recognition capacity and the transaction speed to classify the
counterfeit currency. The method mainly employs Python's NumPy component for
numerical computation, argparse for interpreting argument strings, and cv2 for the OpenCV
bindings. The OpenCV collection of computer works is used for actual time visual
examination and includes functions for fake note verification, money categorization and
note recognition[3].
The system is suggested for automated setting up of a recognizing system by
automatically detecting portraits in sample banknotes, so that it can be quickly
implemented in a new target nation. Employing convolutional neural networks to identify
portraits in a brand-new collection of banknotes that are resistant to changes in how they
are displayed, such as size and the orientation of the face [4].The system employs deep
neural networks to identify and then calculate the various denominations of currency notes
in a set for a ROI (Region of interest). The fact that counterfeit currency detection was
improperly integrated is a serious flaw in this system [5].A strategy which uses image
processing and K-Nearest Neighbors to identify counterfeit currencies.The money
confirmation gathering was created using cutting-edge analytical and computation
techniques, and it offers precise data and details about the people, places, and things
connected to the cash[6].
The paper uses image processing along with the canny approach, which is a computer
language, to carry out a nominal paper detecting process. The cunning approach is used to
identify cutting-edge characteristics in nominal currency. To enhance the image properties

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and determine nominal currency, the ROI of the actual images is handled using the clever
edges technique and a spatial shift [7]. The research suggests a method for processing
images that can distinguish between different denominations of paper money and fraudulent
notes. In compliance with RBI regulations and legislation, it also entails setting up an
algorithm for recognizing Indian notes and figure out whether they are enforceable. [8]. The
technique uses image processing to find these false notes and to identify differences
between actual and false barcodes. This method of image processing includes use of the
MATLAB [9]. The paper is based on the detection of counterfeit currency using digital
image processing on an Android mobile phone. Techniques that use visuals as inputs and
results as well as those that draw characteristics from visuals to pinpoint specific objects are
all included in computerized image processing[10].

3. Existing System
According to the papers' findings, there is an algorithm in place to identify counterfeit
notes. For the computerized module to be accurate and reliable, it is necessary to extract
enough financial characteristics from the currency image. Clustering will be performed
using K-means algorithm in an efficient way, in which it forms the aggregation of the
image featuresindividually. By recognizing the input picture, the SVM algorithm was then
used to identify the input picture as 10, 20, 50, 100, 200, or 500, compare its features, and
classify it as genuine or fake. K-Means algorithm is used for clustering the features of the
image. The algorithm will be very useful for classification. It classifies into groups and
make a cluster. Then it compares the cluster with the information store in the data base and
displays the desired output. In SVM (support vector machine) algorithm as all the attributes
are in different plane, it is difficult to executeand process. With the help of this module or
libraries present in scikit learn help us to calculate and convert on dimension to another.

4. Proposed System
The proposed system retains the positive aspects of the currently using methods while
eliminating its negative aspects. As fake currency is an issue in almost every nation, it has
become particularly prevalent in India and becomes country's severe impact.Looking
through the previous modules done, no online websites has been found to descry fake
currencies. So, in the proposed model, a website is created to find whether a currency is
genuine or fake. Various approaches taken in the system are grayscale conversion, edge
detection, image segmentation, noise filtration etc., Fig 1 shows The input image is given,
then it is converted into grayscale image which is easy to detect the features. Then the
image is edge detected and segmented. The system is given with the dataset containing the
real and fake currencies. Now, the segmented image is compared with the dataset. Finally,
the system prints whether the input given is real or fake. The system works on SSIM
algorithm. SSIM could be expanded as Structural Similarity Index Measure. This index is
used to measure the similarities between the images. Based on the value, the output is
determined whether the user provided image is real or counterfeit note.

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Fig.1 Block diagram of Proposed System

The approach is more accurate and also consumes lower time compared to the existing
approaches. Since the SSIM value is calculated to compare the images, it reduces
complexity. A threshold value is fixed to compare. Depending upon the threshold value, it
gives the result. Thus, improves accuracy and is also less time-consuming approach.

5. System Architecture

Fig.2 System Architecture

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a. User-provided input image:

The user will provide the input image via a digicam or a smartphone camera. The user-
provided input image will be used for pre-processing procedures like deterioration,
magnification, and noise control, as shown in Figure 2.

b. Image Processing:
After the input image has been entered, it will proceed through a number of processing
steps, including grayscale converting, edge detection, segmentation techniques, object
recognition and pattern matching.

c. Template matching:
A template or information set must be compared to the tiny pieces of a graphic.This can
be taken from pattern matching. It is frequently employed as an image quality control
method. Finally, output will be shown whether the currency is fake or real.

6. Experimental Results

Fig.3 Gray Scale Conversion

The Currency image which is selected to check is transformed into a gray scaled image
which is displayed in Fig.3 From the gray scaled image the features of the currency can be
compared easily.

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Fig.4 Edge Detection

The gray scaled image is then converted into an edge detected image which is shown in
Fig.4.

Fig.5 Segmented image

The various features of the image are segmented and the segmented image is displayed
in Fig.5.

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Fig.6 Comparison of images

The segmented picture and the original image are comparedand the difference of the
image from the original image is shown in Fig.6.

Fig.7 Output
Finally, the message box shows the result whether the currency is real or fake which is
shown in Fig.7.

Fig.8 Website Homepage

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The homepage of the website to check the currency notes is shown in Fig.8.

Fig.9 Currency to be selected

The webpage which is shown in Fig.9 is to select the type of currency to check the
currency.

7. Future Scope
Due to a shortage of time, numerous modifications, experiments, and advances have
been put on hold. Future research will focus on deeper analysis of specific techniques, and
fresh ideas will be created to test the new approaches or to satisfy simple inquiries.
1. Future improvements would be made in recognition.
2. In future it would be shown that where the differences are in the currencies instead of
simply displaying the result.
3. If a currency note is discovered to be fake, the exact spot of the scanner utilized for
examining the currency will be recorded and kept in the database for future use.

8. Conclusion
As using money is a vital requirement for all of us, it is important to monitor its
authenticity at all times. India uses paper currency considerably more frequently than other
nations, consequently there is a great demand for a mechanism to identify counterfeit
money. While various banknotes are frequently employed in businesses, the suggested
system appears to be highly helpful for users to determine whether a currency is authentic
or not. This module compares more characteristics of thecurrency's grayscale image for
feature extraction than any other proposed systems. Thus, the proposed module detects the
fake currency and it will be very helpful for the common people to use it.

References
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Detection using Basic Python Programming and Web Framework” IRJET International

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