Brits are being urged to scrutinise their cash carefully as the number of counterfeit banknotes in circulation has surged dramatically. Officials warn that failing to identify fake notes promptly could lead to financial loss or even criminal prosecution.
Rise in Counterfeit Currency
Fresh figures from the National Crime Agency reveal that the volume of fake currency circulating last year was more than double that of 2024. Notably, £20 and £10 notes have proven to be the most commonly forged denominations across the UK. At any given time, there are roughly 5 billion genuine UK banknotes in circulation, while the latest data shows 200,000 fake notes in circulation.
Legal Consequences
Producing counterfeit banknotes, knowingly passing them on, or holding fake notes with the intent to use them as genuine is a criminal offence. The maximum sentence can extend to 10 years' imprisonment, along with the seizure of assets. However, some people may find themselves in possession of forged notes without any awareness that they are fake. This could leave them seriously out of pocket, as counterfeit banknotes are worthless according to the Bank of England, which is unable to reimburse you if you have accepted a fraudulent note.
Impact on Businesses
A BBC Breakfast investigation highlighted the very real impact this can have on unsuspecting members of the public who unknowingly receive worthless currency. Imran Khan, a postmaster featured on the programme, explained how some small businesses might have customers settling bills with cash, but when the owners try to deposit the funds, the post office's machine spits it out and says it is fake. Coming across a counterfeit note by accident is relatively rare, but the vital way to safeguard your money's value is checking whether it is fake before accepting it.
Two Key Signs of a Fake Banknote
There are two telltale signs that can help you spot a counterfeit note. First, genuine notes have a silver foil patch at the bottom that reads pounds when tilted to one side and the value of the note when tilted to the other. Second, a 3D image of the coronation crown appears above the main see-through window. Additional security features include raised print on the front of the notes and a large see-through window featuring either King Charles III or Queen Elizabeth II.
What to Do If You Suspect a Fake
If you mistakenly accept a fraudulent note, you can hand it to the police, who will examine it along with the National Crime Agency and the Bank of England. The Bank of England also urges the public to flag any online adverts claiming to sell counterfeit notes. It states: Counterfeiting directly funds organised crime. It hurts the UK economy by creating losses for businesses, which ultimately affects the cost of things that we buy. It also affects the pocket of anyone who receives a counterfeit note, as they are worthless. If you report counterfeiting to the police, you are helping with investigations and alerting them to a problem in their area, enabling them to take action to protect your community.
