Currency duplication also is known as counterfeit currency is a vulnerable threat to Economy.it is now a common phenomenon due to advanced printing and scanning technology. Bangladesh has been facing the serious problem by increasing rate of fake note in the market.to get rid of this problem various fake not detection methods are available around the world and most of these are hardware based and costly.in the present paper an automated image-based technique is described for the detection of fake banknotes in Bangladesh. Security features of banknote such as the watermark, micro-printing, and hologram etc., are extracted from the banknote images and then detection is performed using “Mathlab tools”