Thesecurity of the £2 coin is under threat from a Chinese criminal gang which has mastered the intricate engineering techniques that lie behind itsmanufacture.

The Shanghai-based outfit has worked out how to produce near- perfect copies of bi-metallic coins - such as euros and the £2 piece - and has beenflooding Europe with high-quality counterfeits.

In September, Italian police seized a shipment of fake euro coins with a face value of €500,000 hidden inside a consignment of metal pipes in theport of Naples.

The single seizure far outstripped the number of counterfeit coins seized across the European Union.

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Chinese forgers create 'perfect' £2 coins(www.thetimes.co.uk/tto/news/uk/article4306100.ece)