T.Sruthi, D Mamatha, R Navya, S Sravani, K Sravani, D Bhuvaneshwari, N Shravani 02 7(1) The detection and classification of banknotes are crucial tasks for preventing financial fraud especially counterfeit currency circulation This project proposes an efficient machine learning MLbased system to classify and detect the authenticity of banknotes using their statistical features By training models such as Support Vector Machines SVM Random Forest and KNearest Neighbors KNN on attributes like variance skewness kurtosis and entropy extracted from images of banknotes the system achieves high accuracy in distinguishing genuine and forged notes The solution aims to assist financial institutions and ATM systems in automating the validation process with realtime results and minimal human intervention Copyright (c) Journal of Science Engineering Technology and Management Science. All rights reserved 2026