Toronto's transit system is putting new subway tokens into circulation that are designed to thwart counterfeiters who have been targeting the TTC in recent years.

Unveiled at city hall Monday afternoon, the new gold and silver-coloured token with ridged edges is the first major redesign in decades.

The TTC claims the new token is "next to impossible to reproduce." A total of 20 million new tokens, which resemble smaller versions of the $2 coin, have been ordered at a cost of $1.7 million.

Transit security official Mark Russell said the coin "a unique electronic signature" that only TTC turnstiles can recognize.

New tokens were ordered by the transit system after high-quality counterfeits were found in the system, siphoning an estimated $10 million dollars from the cash-strapped transit commission.

The counterfeit token scam involved three brothers who had allegedly contracted a U.S.-based mint to make the fakes.

They were arrested and charged in February after a two-year investigation that included Toronto police and FBI agents.

The transit commission is counting on the new design to protect them from losses due to counterfeiting.

"It's something we have to do," TTC chairman Howard Moscoe told reporters.

"If there are huge quantities of phoney tokens out there, it's in out interest to get them out of the system."

Officials are not releasing the exact metals used to craft the token.

The new token goes on sale Sunday. Commuters can still use the old coins until Jan. 31.

Starting Jan. 2, riders can exchange the old tokens at the following subway stations:

• Bloor-Yonge;
• Finch;
• Kipling; and
• Warden.

Commuters who wish to exchange more than 100 tokens, it must be done at the Davisville station.

The TTC has been victimized by counterfeiters in recent years. In 2004 an undercover operation by transit authorities resulted in more than 450 charges and the arrest of 307 people for allegedly making and selling fake tickets.

The TTC says it loses about $7 million every year, or just less than 1 per cent of revenue, through various forms of transit fraud.

With a report from CTV's John Musselman