Europe's biggest economy is awash in fake money, according to a new report released Friday by Germany's central bank, the Bundesbank, which saw 3.3 million ($3.7 million) worth of counterfeit euro bills flood the country last year.

The Bundesbank said the number of registered cases ballooned last year, up 63 percent compared to 2013, for a total of 63,000 - or the equivalent of eight forged bills for every 10,000 citizens.

"The forgers have become more active in terms of distribution," said executive board member of the Bundesbank, Carl-Ludwig Thiele.

Fake 50-euro notes led the surge, with more than 29,000 in circulation last year, followed by nearly 23,000 forged 20-euro bills. Combined, they accounted for more than 80 percent.

The number of counterfeit coins, however, was on the decline, down to 46,000 from 52,000 the year before. 2-euro coins were, perhaps unsurprisingly, the most popular mint among forgers, making up 80 percent of the 80,946 worth of fake euros.

New record not too worrying

But the problem extends far beyond Germany. European authorities reported 838,000 registered cases - a 25-percent increase and the highest level since 2009. In the second half of 2014 alone, more than 507,000 new counterfeit banknotes made the rounds - a new record.

Even though this may sound alarming, the Bundesbank is not overly worried.

"Measured against the much higher number of more than 16 billion genuine euro bills that were in circulation in the second half of 2014, the share of counterfeits is very low," said the Bundesbank.

The usual suspects

Recent police investigations have shown that the bulk of forgeries can be blamed on international counterfeiting rings.

"It's the same old usual suspects. We're seeing the same counterfeits that we've seen for years, entering Germany from southern Europe," said Rainer Elm, head of the Bundesbank's National Analysis Center. "They haven't gotten better," he added.

However, Elm said, even though the forgery business is booming, "it looks like maybe the counterfeiters have overdone it."

To make life harder on the criminals, the European Central Bank has begun introducing a new series of banknotes. The five euro note hit the market in 2013, followed late last year by the ten euro note. In February, it will roll out a new 20 euro bill.

Not sure how to spot genuine banknotes? The ECB shows how here.

pad/uhe (dpa, AFP)