Proposed Solution for Currency Classification and Fake Currency Detection Using Machine Learning

The rapid advancement of digital technologies has greatly impacted financial systems, creating challenges in accurately classifying currencies and detecting counterfeits in various real-world scenarios. Traditional approaches, such as manual inspections and specialized tools like UV light detectors, tend to be time-consuming, expensive, and less effective against sophisticated counterfeiting methods. Recent developments in machine learning and image processing have shown potential, utilizing supervised machine learning models. Nonetheless, issues remain in managing variations due to wear, folds, inconsistent lighting, and different currency designs. This research introduces a robust machine learning-based system for classifying currencies and detecting counterfeit bills. By combining advanced image processing techniques to extract essential features (like texture, edges, and color histograms) with a hybrid model that integrates CNN, Random Forest, and XGBoost, the proposed framework tackles challenges related to real-world variability and subtle signs of counterfeiting. The goal of the system is to achieve high accuracy and reliability in identifying counterfeit notes while ensuring it can scale and adapt to new counterfeiting methods.