Abstract: The growing menace of counterfeit currency is very evident from newspaper reports of fake currency notes being seized appear every day. The advancements in the field of computers, photocopiers and scanners have made the process of duplicating currency note a simple task. The unsuspecting masses have no mechanism of differentiating the fake note from the genuine. The main objective of this project is fake currency detection using LabVIEW. This process can be automated in a computer using NI-IMAQ. The basic logic is developed using Image Acquisition-Laboratory Virtual Instrument Engineering Workbench (IMAQ-LabVIEW). The images of the original currencies are fed to the IMAQ database. Finally the features of the note to be tested are compared with the dataset formed from the original image and finds out whether it is fake or original. In terms of accuracy, reliability and automation, the above mentioned method of counterfeit detection is far more superior to those which already exist.

Keywords: NI-IMAQ, LabVIEW, Edge detection and ROI.