At first glance, the passport looks richly authentic. Its burgundy, textured- vinyl cover is stamped with gold lettering that reads, PASSPORT, REPUBLIC OF CEYLON. Trouble is, Ceylon is now Sri Lanka and the passport is a fake. Or, to use the euphemism favored by Creator Donna Walker, a 49-year-old former travel agent, "It's not counterfeit; it's camouflage."
Walker began minting the false documents earlier this year, prompted by hostage-taking incidents in which terrorists singled out tourists and military personnel who carried American passports. Her clientele can choose citizenship from eight nonexistent nations, including one named after an element on the periodic...