The World Leader in Counterfeiting: Lima's Fake Dollars

Summary

This investigation uncovers the underground world of counterfeit U.S. dollars being forged in Lima, Peru, the leading producer of fake currency globally. Through interactions with local forgers, law enforcement challenges, and dangerous smuggling operations, the script reveals the sophisticated methods used to replicate U.S. bills with alarming precision. Despite police crackdowns, the trade continues to thrive, endangering economies worldwide. The report highlights the intricate processes involved in counterfeiting and the global risks posed by these high-quality fakes, which have caused billions in potential economic damage.

Takeaways

• 😀 Peru is the world's leading producer of counterfeit U.S. dollars, with an estimated $30 million in fake currency circulating in one small area.
• 😀 Criminal gangs in Peru also produce counterfeit Euros and Peruvian Soles, diversifying their illicit currency operations.
• 😀 The first Peruvian-made counterfeit U.S. dollar was detected in the U.S. in 2003, and the trade has expanded significantly since then.
• 😀 In 2023, U.S. authorities identified over $16 million in counterfeit dollars of Peruvian origin, highlighting the scale of the issue.
• 😀 High-quality counterfeit notes are easily obtained in Lima's notorious Azangaro Street, where forgers sell fake bills to buyers from around the world.
• 😀 Some counterfeit bills are so realistic that they are difficult to distinguish from genuine currency, even by experts.
• 😀 Forged U.S. dollars are widely accepted in Lima’s shops and restaurants, showing how deeply counterfeit money is integrated into the local economy.
• 😀 Despite numerous police busts, many counterfeiters manage to evade capture, often paying off authorities or hiding their operations in plain sight.
• 😀 Peru’s counterfeit dollar business has spread globally, with fake bills being smuggled into the U.S. through creative methods, such as being concealed in book covers.
• 😀 Peru's underground printing houses use advanced techniques to create fake currency, including specialized cotton paper and authentic-feeling textures, making their forgeries highly convincing.
• 😀 The global market for counterfeit currency, particularly from Peru, continues to grow, with more forgers entering the trade despite law enforcement efforts.

Q & A

What is the scale of counterfeit currency operations in Peru?

The counterfeit currency operation in Peru is extensive, with over $30 million in fake currency estimated to be stashed in just one location, highlighting the scale and significance of the counterfeit trade.

Why is Peru considered the leading producer of counterfeit dollars?

Peru is the top producer of counterfeit dollars because of its advanced counterfeiting techniques, which allow for the production of highly convincing fake bills. The high quality of these forgeries is one reason why Peru dominates the global market for fake U.S. dollars.

What are the risks associated with counterfeit money in the global economy?

Counterfeit money poses a risk to the economy by potentially undermining the value of legitimate currency. Small businesses, consumers, and even national economies are at risk, as fake money can circulate undetected, leading to economic instability.

What are the common places in Lima where counterfeit money is produced?

Lima's old center and Azangaro Street are well-known hubs for counterfeit currency production. These areas are infamous for illegal forgeries and illegal printing operations.

How did the investigators obtain counterfeit currency from Mario?

The investigators met with Mario after a few inquiries, and despite initial suspicion, they were able to finalize a deal. Mario introduced them to different qualities of counterfeit notes, eventually providing high-quality fake $100 bills.

What techniques do counterfeiters use to create fake U.S. dollars?

Counterfeiters use sophisticated techniques such as printing on cotton paper, which is harder to obtain and more expensive than regular bond paper. They also employ finishing techniques to make the notes appear more authentic, such as replicating the texture and design of real U.S. dollars.

How do counterfeiters smuggle fake currency across borders?

One smuggling method involved concealing fake bills inside the covers of books. In this case, Mario suggested using a book binder who could hide the counterfeit notes within a book, though the plan was disrupted when the book binder was caught by the police.

What challenges did the investigators face when dealing with Mario and the counterfeit network?

The investigators faced several challenges, including the increasing difficulty of getting counterfeiters to sell due to police busts and the increasing paranoia among those in the counterfeit network. They also had to deal with constant changes in the quality of the counterfeit bills.

What happened after the police raided Azangaro Street?

After the police raid on Azangaro Street, the investigators' plan to meet the book binder was disrupted. The book binder was arrested but later released. Despite this, the investigators continued their efforts to acquire high-quality counterfeit bills.

How has the counterfeit industry in Peru managed to evade law enforcement?

Despite frequent police busts, the counterfeit industry in Peru continues to thrive due to the relatively lenient legal system. Many counterfeiters are able to pay their way out of custody or serve light sentences, allowing the industry to remain resilient and continue growing.