The world economy is threatened by counterfeit currencies. Counterfeit currencies are often difficult, time-consuming and ineffective to identify manually. Automated methods based on image processing techniques and machine learning algorithms are helpful in detecting counterfeit notes. This survey paper reviews the current strategies on fake banknote detection using image processing techniques and machine learning algorithms. We discuss various stages of the detection process, including image acquisition, preprocessing, feature extraction and classification. Furthermore, we analyze the limitations and comparative performance of different algorithms and approaches mentioned in the literature. The survey aims to provide insights into the various methodologies, challenges and future directions in the field of fake banknote detection, facilitating the development of more robust and effective counterfeit detection systems.