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With the new, state-of-the-art printing devices and equipment, there has been rapid growth in the counterfeiting of banknotes. Traditional security features on banknotes are easy targets for counterfeiters, and they can easily imitate the original banknotes with fake ones. Conventional methods for validating currency require specialized devices for the authentication of banknotes. However, cost and lack of mobility of sophisticated banknote validation devices are big problems for general consumers. Modern digital solutions are attempting to complement the traditional security features through embedding radio frequency identification (RFID) chips in the banknotes, for example, Euro currency. Unfortunately, the requirement of specialized RFID readers for banknote validation impedes their widespread proliferation among consumers. To overcome this problem, a new method of banknote validation using an RFID chip and an NFC-enabled smartphone is presented. The consumer sends a banknote validation request to the Monetary Agency (MA) using her or his smartphone and an Internet connection. The MA replies by sending a random challenge to the consumer’s smartphone. The RFID chip in the banknote receives the challenge, via the NFC, and calculates an equivalent response to the MA’s challenge. If any of the messages are incorrect, authentication is denied. By the proposed method, consumers can easily and instantly check the originality of currency notes with the MA using their smartphones and an Internet connection. The proposed system is less expensive, computationally, than regular methods and preserves the privacy of people who carry banknotes

Banknote Validation through an Embedded RFID Chip and an NFC-Enabled Smartphone