Counterfeit Detection: Hong Kong, China 2007 10 Dollar Banknote

Posted on 4/21/2020

While viewing this note under specialized lighting, the PMG team noticed remnants of a solution used to lift the ink off of the serial number.

The error note seems to be the most common type of alteration that PMG comes across. That's simply because altering a cheap note to make it appear to be an error will net the most money. Even con men need to worry about their profit and loss statements.

Today is no different. We will examine a Hong Kong, China 2007 10 Dollars (Pick# 401a). First, here is an example of a near-perfect note.

Hong Kong,China, Government of Hong Kong, China 2007 10 Dollars (Pick# 401a) graded PMG 69 Superb Gem Uncirculated EPQ
Click image to enlarge.

Now compare it to the note in question (look at the serial number at the right).

Altered Hong Kong,China, Government of Hong Kong, China 2007 10 Dollars (Pick# 401a)
Click image to enlarge.

Close-up of serial number
Click image to enlarge.

At first glance, the serial number seems to be missing! Whenever you (or PMG) are dealing with an apparent error, more scrutiny needs to go into examining the error. As far as modern currency is concerned, the serial number(s) are the last to be printed before the notes are cut and packed. As this note is missing its serial number, one of two things must have occurred for it to be genuine: (1) The right serial numbering device never touched the note, or (2) The right serial numbering device touched the note but without ink. The difference would be between a Missing Print Error and an Insufficient Inking Error.

Close-up of serial number under infrared lighting
Click image to enlarge.

When we use infrared lighting, we can clearly see that the numbering device did touch the paper. There is a clear impression of the embossing left by the numbering device. So, now we know we are (potentially) dealing with an Insufficient Inking Error. This would occur when the right serial numbering device’s ink well would run dry. The machine would still hit the note hard enough to leave an impression, but there would be no ink.

Our next step is to keep looking. Just because we have one positive checkmark doesn’t mean we move on to the next note. The PMG team takes all needed and necessary steps to ensure that notes are thoroughly looked at. Like Alice, we will continue down the rabbit hole together.

Close-up of serial number under UV lighting
Click image to enlarge.

If we had a mental pro and con list, this note would now be dead even with one tick a piece. This is shown with ultraviolet (UV) light. The UV light is a wonderful tool that should be used with every note before purchase. Here are some questions when looking at a reaction from one of the images that we show: “What would make it look like that?” and “Is that normal?”

Close-up of serial number under special lighting
Click image to enlarge.

With some more special lighting, it’s becoming clearer that this isn’t a natural-occurring Insufficient Inking Error. These numbers were lifted off the polymer substrate in order to appear like an error. Unfortunately, because of the smoothness of the polymer, this happens quite frequently.

Extreme close-up of one digit in the serial number
Click image to enlarge.

An extreme close-up view of one of the digits is the nail in the proverbial coffin. Here it’s possible to see the remnants of a solution used to lift the ink. This wouldn’t be here if it were a legitimate Insufficient Inking Error.

This is another example showing that collectors should be especially watchful for alterations and counterfeits when evaluating error notes. Collectors can trust that any note encapsulated by PMG is backed by the PMG Guarantee of grade and authenticity.

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