Huang Yuanshen, a lawyer from Guangdong Zhiming Law Firm, accepted an interview with a reporter.

Interview original text: "Counterfeit Coins Infiltrate Buses and Supermarkets"

In recent days, many readers have reported to our newspaper that they frequently receive fake 1-yuan and 5-jiao coins. During interviews, individual vendors also told reporters that they receive fake coins every day, and bus companies and supermarkets have suffered even more serious losses as a result. One bus company once received more than 2,400 fake coins in a single day, while a supermarket chain once received over a thousand fake coins in a single day.

Reporter investigations found that many citizens are indifferent to the existence of counterfeit coins. In fact, this lack of concern has led people to let their guard down against fake coins, while also giving criminals who manufacture and sell counterfeit currency an opportunity.

Unwittingly accepting counterfeit coins

In recent days, reporters conducted interviews regarding counterfeit 1-yuan coins at supermarkets, bus companies, vegetable markets, and newspaper stands. During these interviews, reporters learned that the main reason counterfeit 1-yuan coins circulate in large quantities in the market is a lack of common knowledge for distinguishing genuine from fake.

On the morning of December 17, a reporter used a fake one-yuan coin to buy a newspaper at a newsstand on Xinwen Road. However, the owner of the newsstand took the coin without even looking at it and casually tossed the counterfeit into the cash box. When the reporter asked the owner whether this method of accepting money might lead to receiving fake coins, the owner replied helplessly that he frequently received fake one-yuan coins. He said he knew nothing about how to distinguish genuine renminbi from counterfeit notes, and on his busiest day, he had received 20 fake one-yuan coins. The owner also said that when encountering counterfeit money, they have no authority to confiscate it and can only refuse to accept it, but more often than not, they inadvertently accept it.

The reporter asked the boss to find the fake one-yuan coin that the reporter had secretly marked earlier and to examine it carefully. The boss found the fake coin and, after a careful look, frowned and smiled at the reporter. He said: “This coin is fake, it’s even rusted, but the craftsmanship of counterfeit coins is getting better and better—you can’t tell without a close look.”

At a newsstand on Jingtian Road, a female owner told reporters that she is very careful when accepting coins and rejects any that feel suspicious. She also told reporters that despite being extremely careful, she still ended up with three fake 1-yuan coins today.

The owner also revealed to reporters that a group of people frequently came to the newsstand with bags of fake one-yuan coins, asking her to exchange them. The female owner said the exchange rate was two to one, meaning 50 yuan in real currency for 100 fake one-yuan coins.

Counterfeiting "craftsmanship" varies in sophistication.

At a small convenience store on Heping Road, the owner took out more than a dozen counterfeit coins and told reporters that these were all fake coins he had received in the past few days. Upon careful examination, the reporter found that the “craftsmanship” of the counterfeit coins varied considerably. Some, due to their high iron content, easily developed rust spots on the surface; some had blurry patterns and lines; and compared with genuine coins, the counterfeits were thinner and slightly lighter in weight. The owner told the reporter that this indicated there were different counterfeiters, and their techniques were also different.

The owner also said that when collecting payments, he usually checks large-denomination banknotes carefully, and the counterfeit detector is very effective for identifying fake paper money. However, there is no dedicated machine for verifying the authenticity of coins.

Public transportation and supermarkets are severely affected.

The reporter saw on the bus that the driver and conductor had no time to check the coins passengers put into the fare box, especially on crowded buses where it was impossible to carefully distinguish real coins from fake ones. A conductor told the reporter that at busy stops with many passengers getting on and off, they had to maintain order and sell tickets, leaving no time to check the authenticity of the coins.

A manager from a bus company in Shenzhen told reporters that their company operates over a hundred buses and receives nearly 700 yuan in fake coins every day. On the worst day, the company collected more than 2,400 fake coins, and the annual loss due to counterfeit currency can reach 260,000 yuan. He also mentioned that the company uses a self-service fare collection system, making it very difficult to guard against the use of fake coins.

The manager also told the reporter that their company hands over the fake coins received each day to the bank, which destroys them uniformly.

Yesterday morning, the reporter visited a relatively large chain supermarket in the city. The supermarket's manager, Mr. Zhang, told the reporter that they have four branches in the urban area of Shenzhen and find fake coins in circulation every day, with the highest single day seeing over a thousand fake coins.

Manager Zhang also told reporters that to improve cashiers' ability to identify counterfeit bills, they invited banking professionals to train their staff. Through the training, cashiers have basically achieved the ability to “identify at a glance and verify by touch,” thereby reducing the economic losses counterfeit money caused to the supermarket.

They did not take fake coins seriously.

Liu, a branch office director at a commercial bank, told reporters that as the country's economic level continues to rise, the income level of the people has increased significantly. In particular, the disposable income of Shenzhen residents has also risen year by year. Many people have begun to "disregard" coins, paying no attention at all to this "small change." Some even believe that "small change" is not money.

Director Liu said that now citizens often come to the bank to ask about methods for identifying counterfeit large-denomination banknotes, but in recent years, he has never encountered a citizen asking how to identify counterfeit coins. He feels that citizens' attitudes toward coins have become increasingly indifferent.

Director Liu also told reporters that governments and banks are increasingly promoting methods for identifying the authenticity of large-denomination banknotes. However, this has instead created a “blind spot” among the public when it comes to verifying the authenticity of coins. Technical means for identifying counterfeit coins are not widely available, and the promotional efforts have not been very effective.

Citizen Mr. Wang said that he finds coins inconvenient to carry around, and their denominations are too small. When shopping or receiving change, he doesn't even glance at them, let alone check for authenticity. He believes many citizens have this habit, simply taking or spending coins without ever distinguishing whether they are real or fake. He said this gives criminals an opportunity to exploit the situation.

A small shop owner told reporters that a small number of counterfeit coins are generally not easily detected. Even if they are noticed, he doesn't pay much attention when receiving money, and counterfeit coins face much less resistance in circulation compared to counterfeit banknotes.

Real coins are heavier and thicker, while counterfeit coins are lighter and thinner.

Regarding the issue of how to distinguish genuine coins from counterfeit ones, a reporter interviewed Director Yang of the Anti-Counterfeit Currency Division of the Monetary Gold and Silver Bureau of the People's Bank of China by phone.

Director Yang told reporters that there are currently no widely available devices on the market for verifying the authenticity of coins, but counterfeit coins in circulation can be identified by the naked eye and by touch. He said that genuine 1-yuan coins are made of high-carbon steel, while fake 1-yuan coins are made of low-carbon steel. Director Yang explained that fake 1-yuan coins have a high iron content, and after being in circulation for some time, rust will appear on the surface of the coin.

Director Yang further explained that genuine one-yuan coins have a relatively thick nickel plating, while counterfeit one-yuan coins have a thinner one. After some time, the nickel on counterfeit coins peels off on its own, resulting in a rough surface. He reminded reporters that on genuine coins, the center of the peony flower on the obverse side is crafted with meticulous detail, whereas on counterfeit coins, the flower center is crudely made; genuine coins are relatively clean and heavy, while counterfeit coins are light due to their high iron content; the edges of genuine coins are neatly pressed during minting, but the machinery used to make counterfeit coins is substandard, leaving the edges smooth and polished to the touch.

Using counterfeit currency worth over 4,000 yuan may result in a fine of up to 10,000 yuan.

Regarding the criminal penalties for possessing and using counterfeit currency, a journalist interviewed Lawyer Huang Yuanshen from Guangdong Zhiming Law Firm. He explained that according to Article 172 of the Criminal Law, whoever knowingly possesses or uses counterfeit currency, if the amount is relatively large, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and shall also, or shall only, be fined not less than 10,000 yuan but not more than 100,000 yuan; if the amount is huge, shall be sentenced to fixed-term imprisonment of not less than three years but not more than ten years, and shall also be fined not less than 20,000 yuan but not more than 200,000 yuan; if the amount is especially huge, shall be sentenced to fixed-term imprisonment of not less than ten years, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan or have property confiscated.

Attorney Huang also told reporters that Article 19 of the Provisions of the Supreme People's Court and the Ministry of Public Security on the Standards for Pursuing Economic Crime Cases stipulates that anyone who knowingly holds or uses counterfeit currency with a total amount of more than 4,000 yuan shall be prosecuted.

Attorney Huang explained that a total amount of 4,000 yuan or more but less than 50,000 yuan constitutes a “relatively large amount”; a total amount of 50,000 yuan or more but less than 200,000 yuan constitutes a “huge amount”; and a total amount of 200,000 yuan or more constitutes an “especially huge amount”.