Britons are being urged to scrutinise their banknotes as the circulation of counterfeit currency has surged dramatically, potentially leaving unsuspecting holders with worthless paper and even criminal liability. Recent data from the National Crime Agency reveals that the volume of fake notes in circulation last year more than doubled compared to 2024, with £20 and £10 notes emerging as the most commonly forged denominations.
Legal Consequences of Counterfeit Notes
Creating counterfeit banknotes, knowingly passing them on, or possessing fake notes with the intention to use them as genuine constitutes a criminal offence. The maximum penalty can reach up to 10 years' imprisonment and seizure of assets.
However, many individuals may unknowingly come into possession of forged notes. In such cases, the Bank of England does not compensate holders, as counterfeit notes hold no value. This can leave victims financially disadvantaged, particularly small business owners who accept cash payments.
Impact on Small Businesses
BBC Breakfast's investigation highlighted the real-world consequences. Postmaster Imran Khan explained that when small businesses attempt to deposit cash, the post office machine often rejects fake notes, leaving them with worthless currency.
While accidental receipt of counterfeit notes is relatively rare—given that there are approximately 5 billion authentic UK banknotes in circulation compared to 200,000 counterfeit ones—the risk remains.
How to Protect Yourself
The best way to safeguard your money is to verify the authenticity of notes before accepting them. If you inadvertently accept a fake note, you can submit it to the police, who will forward it to the National Crime Agency and the Bank of England for assessment.
Security Features to Check
- A silver foil patch at the bottom that changes from 'pounds' to the denomination when tilted.
- A 3D image of the coronation crown above the main see-through window.
- Raised print on the front of the notes.
- A large see-through window featuring either King Charles III or Queen Elizabeth II.
Additional security features can be found on the Bank of England website. The Bank also urges the public to report any online advertising that claims to supply counterfeit notes.
Counterfeiting directly funds organised crime and hurts the UK economy by creating losses for businesses, ultimately affecting the cost of goods. Reporting counterfeiting to the police helps investigations and protects communities.
