Police Warn Fake Banknotes: Spot, Report Counterfeits

Most people never give the notes in their wallet a second thought—until a shopkeeper or bank refuses one. That moment of dread is exactly what scammers are counting on, and police forces across the UK have recently seen a spike in counterfeit £20 notes being passed through online marketplace sales. The good news: genuine polymer notes have built-in security features that are harder to replicate than ever. The catch: if you unknowingly accept a fake, there’s no safety net. The Bank of England makes clear that counterfeit banknotes are worthless and cannot be reimbursed, so knowing how to spot the real thing before you’re out of pocket is worth every second you spend reading.

Most targeted note: £20 bill · Reimbursement policy: No reimbursement per Bank of England · Reporting channel: Call 101 for suspected fakes · Recent alerts: Wiltshire, Cheshire, Lancashire, Police Scotland

Five billion genuine banknotes worth £90 billion circulate in the UK, making the financial system dependent on trust that each note is real. Against that vast volume, counterfeiting remains rare but not negligible.

Can ATMs Detect Fake Notes?

Automated teller machines are designed to accept deposits and dispense cash, but their counterfeit detection capabilities vary depending on the machine’s age, manufacturer, and software calibration.

How ATMs Detect Counterfeit Bills

• ATMs use ultraviolet light sensors that cause genuine security features to fluoresce while fake notes often remain dark or show uneven responses
• Many modern machines employ magnetic ink detection to verify authentic currency printing compounds
• Size sensors compare note dimensions against standard measurements—counterfeit notes are frequently slightly off-spec
• The Federal Reserve notes that genuine US notes include embedded security threads that transmit specific signals to machine sensors

Will ATMs Recognize Fake Cash?

The honest answer is: mostly, but not always. ATMs have caught many counterfeits, but determined fraudsters produce notes that slip past older machine models. The Bank of England advises against treating any machine as a guaranteed validator—if you deposit what turns out to be counterfeit, the bank can confiscate it and you lose the funds. Police guidance recommends preserving any suspicious note in a plastic envelope for fingerprint evidence, then reporting to authorities immediately.

What Happens If You Get Caught Using Fake Notes?

Whether you knowingly pass a counterfeit or do so accidentally, the legal and financial consequences are severe and asymmetric—you bear the loss while potentially facing criminal exposure.

Punishment for Possessing Fake Money

Wiltshire Police Fraud Protect Officer guidance makes clear that passing on a note you know is fake constitutes a criminal offence under the Forgery and Counterfeiting Act 1981. The Bank of England confirms that making or passing counterfeit notes violates this Act, with penalties reaching up to 10 years imprisonment for conviction on indictment. The law treats intent as irrelevant for the loss—you still lose the note’s value even if you had no knowledge of its falseness.

Consequences of Trying to Pay with Fake Money

If a customer presents you with a suspected note, the recommended response from police is to retain the note, issue a receipt documenting the interaction, and request an alternative payment method. Retailers who unknowingly pass counterfeits to customers face the same reimbursement problem—once a counterfeit is identified, it is confiscated and the holder absorbs the loss. Online sellers accepting cash on delivery face particular risk since they cannot verify notes before handover.

“Passing on a note you know is fake is a criminal offence.”

— Wiltshire Police, Fraud Protect Officer

What Should I Do If I Have a Fake Note?

The moment you suspect a note is counterfeit, the clock starts on your options for recourse and your legal obligations. Speed and preservation are critical.

Steps If You Accidentally Deposit Fake Money

• Do not attempt to spend or deposit the note—passing it on compounds the offence
• Place the note in a plastic envelope to preserve potential fingerprint evidence
• Contact police on 101 or Crimestoppers at 0800 555 111 to report the incident
• Complete the police NCO-1 form if instructed—Bank of England guidance confirms this is the standard reporting mechanism
• If you are a business, retain the note and any customer details to assist police investigation

Reporting Forged Notes to Police

The Bank of England’s official guidance directs all counterfeit reports to police via the 101 non-emergency number or Crimestoppers anonymous reporting line. Wiltshire Police have specifically urged businesses to report counterfeit incidents, particularly when they involve online marketplace transactions where sellers may be unaware they received fakes. The report triggers an investigation and creates an official record that may help if patterns emerge linking your case to a broader operation.

What Currency Is Most Counterfeited?

Global counterfeit trends show consistent patterns across currencies, with the $20 US bill and £20 UK note standing out as primary targets in their respective markets—reflecting their high circulation volume, mid-range value, and utility in everyday transactions.

Most Commonly Faked Bill

The Bank of England’s 2025 data shows approximately 200,000 counterfeits removed from UK circulation with a face value of £4 million—predominantly £20 notes. The US Federal Reserve similarly identifies the $20 bill as the most frequently counterfeited denomination in American currency. The pattern reflects a sweet spot: large enough to be profitable for counterfeiters, common enough in daily commerce to have frequent opportunities for passing.

Top 7 Counterfeited Currencies

• US Dollar ($20 note) — most counterfeited globally due to dollar dominance
• Euro (€50 note) — common in cross-border European trade
• Pound Sterling (£20 note) — primary target in UK market
• Chinese Yuan — domestic counterfeiting within China
• Indian Rupee — high-volume transactions in informal markets
• Brazilian Real — regional commercial hubs
• Mexican Peso — cross-border trafficking patterns

How to Spot Fake Notes?

UK polymer £20 notes carry multiple security features designed to be verifiable without specialist equipment—though a £10 UV torch at 365nm wavelength gives the most reliable confirmation.

Check with Pen

Counterfeit detection pens that mark paper currency brown when encountering starch work on traditional paper notes. However, the Bank of England polymer £20 notes introduced in 2020 render these pens ineffective—the polymer substrate contains no starch for the chemical reaction to detect. Convenience Store News confirms detector pens are unreliable for polymer notes, meaning this common retail tool will give false negatives on genuine new £20s.

Use UV Light

• Under UV light at 365nm, genuine £20 notes show bright red and green fluorescent elements—the “20” numerals glow on a dull non-fluorescent background
• The Bank of England PDF guide confirms this test is effective for both JMW Turner and King Charles III portrait versions
• Fake notes may show no glow, uneven glow, or glow in wrong areas
• UV-reactive ink appears on both the front and back of genuine notes in coordinated patterns

Spot Fake £20 Notes Manually

• Feel for raised print: genuine polymer notes have tactile raised elements on “Bank of England” text and corner areas
• Check the hologram: tilting a genuine £20 changes the word “Twenty” to “Pounds” within the golden foil patch
• Verify the windows: genuine notes feature a clear see-through window with a metallic image and denomination, plus a smaller window in the bottom corner
• Examine the silver foil crown: the 3D coronation crown image shifts perspective when rotated
• The purple foil “T” on the back of the note should appear behind the silver crown when viewed correctly
• Look for raised dots for accessibility—genuine £20 notes include tactile markers for visually impaired identification

The pattern is clear: criminals exploit trust in cash transactions, particularly in online marketplace handoffs where verification happens in passing. For businesses and individuals, the cost-benefit calculation is stark—you lose the note’s value with no recourse, while the legal risk falls on whoever knowingly passes a counterfeit.

How to Report Counterfeits

Reporting counterfeit currency serves both your own interests—creating an official record—and broader law enforcement efforts to track distribution networks and identify organised crime involvement.

Step-by-Step Reporting Process

1. Preserve the evidence: Place the suspected counterfeit in a clean plastic envelope without folding or handling excessively to preserve potential fingerprints
2. Document the interaction: Note any customer details, transaction records, time, and location—this information assists police investigations
3. Contact police: Call 101 for non-emergency police contact or Crimestoppers at 0800 555 111 for anonymous reporting
4. Complete official forms: If requested by police, complete the NCO-1 form—the Bank of England’s standard mechanism for counterfeit documentation
5. Surrender the note: Do not attempt to spend the counterfeit under any circumstances—surrender it to police or your bank

Timeline: Key Events in UK Counterfeit Notes

The progression from the 1981 Act through the 2020 polymer transition to the 2026 alerts shows how counterfeiting tactics evolve alongside note security features.

The implication: the 1981 Act remains the backbone of enforcement while the 2020 and 2024 note redesigns reflect the Bank’s ongoing efforts to outpace counterfeiters.

Confirmed Facts vs. What Remains Unclear

What this means: the asymmetry between low aggregate rates and total individual loss is the defining tension shaping counterfeiting policy debate.

Expert Perspectives

“Counterfeit banknotes are rare and also worthless. We cannot reimburse you for counterfeit banknotes.”

— Bank of England, Official Guidance

“In 2025 typically less than 0.0041% of banknotes were counterfeit, that is less than 1 in 24,390 banknotes.”

— Bank of England, Official Statistics

For anyone accepting cash in the UK, the stakes are straightforward: one bad note means a direct financial loss, while the legal exposure falls on anyone who knowingly passes a counterfeit. The Bank of England’s official statistics suggest counterfeiting remains uncommon, but the Bank of England’s own guidance acknowledges that counterfeiting funds organised crime and ultimately raises costs for all consumers. Whether you’re a retailer, an online seller, or simply someone getting change at a shop, the message from police and the Bank of England alike is unmistakable—know the security features, verify before accepting, and report anything suspicious immediately.

Related reading: ANZ Online Banking App Guide · Bank of Baroda NZ Guide

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