Counting the Cost of Counterfeit Banknotes

With summer in full swing, the school holidays are here, and trips to the seaside, amusement parks, and other entertainment venues are on the rise. Local shops are likely seeing an increase in the sale of snacks, and the recent warm weather will no doubt have driven up demand for ice creams and frozen treats. Hospitality venues, bars, and restaurants are also enjoying a boost — with ice-cold drinks flying off the shelves.

Alongside this seasonal uplift comes a noticeable rise in the use of cash, especially banknotes. But with more cash changing hands, it’s essential for businesses to remain vigilant against counterfeit notes.

The Reality of Counterfeit Banknotes

Counterfeit notes are illegal reproductions and, crucially, completely worthless — including to the person who unknowingly accepts one.

According to the Bank of England, in 2024, fewer than 0.0019% of banknotes in circulation were counterfeit — that’s less than 1 in every 52,600 notes. However, even at such a small percentage, this still equates to a face value of approximately £1.945 million.

The £20 note continues to be the most counterfeited denomination, with 80,000 removed from circulation in 2024. In comparison, just 6,000 £50 notes were seized.

Once identified, counterfeit notes are taken out of circulation by banks or law enforcement and sent to the Bank of England for analysis.

A Declining Threat — But Not Gone

Encouragingly, counterfeiting in the UK has decreased significantly since 2019, when over £10.4 million in counterfeit notes was detected. This drop is largely thanks to:

• The introduction of more secure polymer banknotes
• The withdrawal of older paper notes
• Effective police action targeting counterfeit production and distribution networks

Despite this progress, counterfeit notes remain a risk to businesses, especially those that handle large volumes of cash. So, what can you do to protect your business?

How to Protect Your Business

One of the most effective ways to protect against counterfeit notes is to use a SafePoint smart safe from Loomis.

These intelligent devices automatically validate notes before accepting them and reject any counterfeit currency — removing the burden from your staff and avoiding uncomfortable confrontations. It’s the machine rejecting the note, not the employee.

Once deposited in the SafePoint smart safe, your cash is as good as in the bank. Deposits are counted, logged, and securely held until collected by Loomis’ secure cash-in-transit service. You can track and manage the entire process 24/7 via the Loomis Customer Portal.

Why Choose the SafePoint Compact?

The SafePoint Compact is a popular solution for smaller businesses, local retailers, and hospitality venues. Designed to fit neatly under a counter or in a back office, it offers robust functionality in a space-saving design.

Key features include:

• Indemnity cover for up to £10,000 in takings
• Smart technology to detect counterfeit notes
• 24/7 visibility of deposited cash via the Loomis portal
• Capacity for up to 1,200 banknotes, reducing shrinkage and the need for frequent bank visits
• Weekly rental cost includes regular cash collections
• Dynamic scheduling available for added flexibility

By reducing manual cash handling, the SafePoint Compact improves efficiency, saves time, and helps safeguard your revenue.

Find out more here: https://uk.loomis.com/welcome-to-the-safepoint-compact-family

What to Do If You Suspect a Counterfeit Note

If you suspect you've received a counterfeit note:

• Do not attempt to pass it on.
• Take the note to your nearest police station.
• The police should complete an NCO-1 form and provide a receipt and incident number.
• Suspect notes are sent to the National Crime Agency, and if confirmed as counterfeit, then on to the Bank of England for further investigation.

For full guidance, visit the Bank of England's website: https://www.bankofengland.co.uk/banknotes/counterfeit-banknotes/how-to-check-your-banknotes

Why Reporting Matters

Counterfeiting funds organised crime and damages the UK economy by creating losses for businesses — losses that can ultimately drive up prices for everyone. It also directly affects individuals who unknowingly receive counterfeit notes, as they cannot be reimbursed.

By reporting counterfeit notes, you’re helping the authorities investigate and disrupt criminal activity — and contributing to the protection of your local business community.

Stay vigilant. Stay secure. With Loomis, your cash is in safe hands.