I have known Ian Russell for a quarter century when he worked for Teletrade, an early pioneer in the certified coin market. He served as president of Teletrade from 2005-2010. He then founded GreatCollections Coin Auctions, which I whole-heartedly recommend. Good buyer and seller rates. I have used the site for years.
If you don’t known Russell, you can read his biography by clicking here.
Russell is treasurer of the Anti-Counterfeiting Educational Foundation, which raises awareness about counterfeit coins and bullion and works with authorities to track down sources of fake lots and sales.
I asked Russell to comment on what Jack D. Young, Jack Riley and I have been documenting on eBay and other online venues, i.e., counterfeit coins in fake PCGS holders whose certification numbers open to a Chinese site.
One of the first to note that development was Young, writing for Proxiblog in “Trifecta, CN Counterfeit Coin, Slab and Website.”
Here is a summary:
- The Elements: The scam consists of three parts: a cheap base-metal counterfeit coin, a slab designed to mimic an authentic PCGS holder, and a fake URL/QR code.
- The Fake Website: Scanning the QR code on the slab directs victims to a mirror website that falsely “verifies” the fake certification number as legitimate.
- Prevalence: Investigated by numismatists on Proxiblog Coin News and Views, these scams heavily flood online marketplaces like eBay.
Proxiblog recommended these actions if encountering the sale of fake coins:
- Verify Directly: Never use the QR code or URL printed on a suspicious slab’s label. Manually search the certification number on the Official PCGS Verification Portal.
- Compare Markers: Scrutinize the coin’s die markers and weight, as counterfeiters often use stolen images of genuine coins for their listings.
- Report Fakes: You can read investigative articles by numismatists at the Proxiblog Counterfeit Archive to stay up-to-date on current fakes.
The sheer number of “Not PCGS” counterfeits has reached epidemic proportions. See this video for examples:
Proxiblog recently contacted PCGS President Stephanie Sabin, who provided this statement:
“Since founding PCGS in 1986, our mission has been to protect collectors through leading authentication, grading, and the most secure holders in the industry. However, a powerful brand inevitably attracts counterfeiters, and we treat combating these fraudulent holders as an aggressive, ongoing priority. True security requires staying multiple steps ahead, which is why we continually invest in advanced overt and covert security features across all our product lines. We applaud the dedicated individuals and organizations within our community who work tirelessly to educate collectors on the dangers of counterfeit holders; their vigilance to eliminate altered and fraudulent collectibles is essential to protecting consumers and preserving the integrity of the numismatic marketplace.”
You can read more about PCGS fake holders in “Protecting the Good Name of PCGS from eBay Counterfeits.”
After that article ran, Proxiblog began getting emails and messages about whether their actual PCGS-holdered coins were legitimate. That shows the damage being done to the main reason that holdering companies exist: authentication. Proxiblog viewers also wanted to know what the big auction houses are doing to ensure that coins holdered by PCGS, NGC and other companies contain genuine coins.
So we contacted Russell to find out.
“The rise in counterfeit coins housed in fake PCGS holders has become one of the most serious threats facing the numismatic marketplace today,” Russell says. “At GreatCollections, every coin is carefully reviewed before it is offered for sale, and our team is highly experienced at identifying counterfeit holders, altered labels, and fraudulent verification schemes. Protecting bidders and maintaining confidence in third-party grading are top priorities.”
When questionable material is identified, GreatCollections removes it from consideration regardless of its source. While most consignors are acting in good faith and are often unaware they possess a counterfeit item, Russell says, “we will not offer any coin whose authenticity cannot be fully verified. The integrity of the marketplace depends on strict authentication standards and consistent enforcement.”
Russell is concerned about the growing sophistication of counterfeit holders. This has understandably caused some collectors to question genuine certified coins. “That is why auction houses, grading services, dealers and collectors must remain vigilant and work together to identify and remove counterfeit material whenever it appears. Confidence in certified coins is built on trust, and that trust must be protected.”
Jack D. Young also was among the first to report counterfeit coins in fake PCGS holders with GreatCollection labels. The label on the left side below is fake. Compare it to the real label, right.
Russell says, “We’ve also encountered counterfeit PCGS holders that use fake GreatCollections labels. Ironically, the counterfeiters often print a GreatCollections inventory label inside the sealed PCGS holder, as though it were inserted during the grading process. It’s almost comical, but it also illustrates how far these operations are willing to go to create a false sense of authenticity.”
As counterfeiters continue to refine their methods, Russell recommends reading Proxiblog and other numismatic publications, paying attention to careful examination and buying from reputable sources.
For an inventory of Proxiblog counterfeit articles, click here.
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