The European Union is drafting proposals to force manufacturers to include anti-forgery software in products such as scanners and printers, according to The Observer newspaper. The legislation would seek to tackle the growth in counterfeit currency.

The Observer reports that the Central Bank Counterfeit Deterrence Group, made up of 27 top central banks, has developed anti-forgery software, which has been supplied free of charge since the start of the year.

The software looks for set features incorporated as a pattern into banknotes. If the pattern is detected, then the printer, copier, or software refuses to process the image. It is already being used in some printers and in the latest release of Photoshop, Adobe's market-leading graphics software.

While use to date has been voluntary, there are moves afoot to make the use of anti-counterfeiting software compulsory. The EU is in the process of preparing legislation to force the use of the software, with publication due before the end of the year, according to The Observer.

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