Counterfeit Bank of England notes are rare, but the business that accepts one normally bears the loss because fake notes have no value. Retailers and other cash businesses should check notes at the point of sale, train staff on current security features and have a clear process for suspicious notes.
Check notes at the point of sale, not at the end of the week
The Bank of England advises retailers and businesses to check banknotes when customers present them. Counterfeiters can target businesses where checks are weak and may use a high-value note to buy a low-value item so they leave with both goods and genuine change.
Checking later is too late to identify the customer or refuse the note. Build the check into the till interaction for larger notes or suspicious transactions rather than relying only on the cash office after closing.
Train staff on current polymer-note security features
The Bank of England provides free posters, booklets, films and online training covering current King Charles III and Queen Elizabeth II banknotes. Use the official material rather than old counterfeit guides based on withdrawn paper notes.
Staff should understand more than one security feature so they do not rely on a single visual test. Refresh training when note designs or withdrawal status changes and keep quick-reference material near cash-handling areas.
Do not knowingly pass a suspected counterfeit to another customer
The Bank of England says it is an offence to pass or tender a banknote knowing or believing it to be counterfeit. A business should never solve the loss by quietly putting the note back into the till and giving it to somebody else later.
Follow the Bank of England's guidance on handling suspicious notes and contact police where the circumstances are suspicious. Prioritise staff safety: employees should not physically confront a customer if doing so creates danger.
Record where and when suspicious cash was received
Keep the time, till, value, staff member and transaction details. Preserve CCTV under the business's retention policy where it may help police or internal investigation. If the counterfeit was discovered later during cash count, the record can narrow which sales need review.
Do not book the note as normal bankable cash. Once confirmed counterfeit, recognise the shortage or loss according to the accounting policy. The bank will not convert a fake note into genuine value.
Use the Banknote Checking Scheme for structured training
The Bank of England operates a free Banknote Checking Scheme for businesses. Members receive training materials, updates and support intended to reduce loss and the circulation of counterfeits.
Cash-heavy retailers can nominate managers or trainers to keep materials current and test staff knowledge. The programme covers Bank of England notes; Scottish and Northern Ireland banknotes have separate issuer arrangements.
Combine note checking with sensible till and cash-handling controls
Counterfeit prevention is stronger when staff have good lighting, clear rules for high-value notes and escalation authority. A junior employee should know they can ask a supervisor to review a suspicious note without delaying a queue indefinitely.
Review patterns. Several suspicious notes at one location or time can indicate targeted activity. Share that information internally and with law enforcement where appropriate rather than treating each counterfeit as an unrelated till shortage.
Use a clear escalation phrase for staff, such as asking a supervisor to "check this note" rather than accusing a customer of counterfeiting. A genuine customer can be carrying a note they did not know was false, and the employee's priority is safety and evidence rather than confrontation. The policy should explain when police should be contacted and when the note should simply be retained for the official process.
Review counterfeit losses by denomination and site. A repeated pattern of £20 notes during one evening shift can justify additional supervision or a refresher. If one till accepts far more suspect notes than others, management should investigate training, lighting or deliberate collusion rather than assuming random bad luck.
Cash-count machines do not replace point-of-sale checking. Discovering a counterfeit in the back office protects the bank deposit but leaves the customer unidentified. Frontline checks reduce the chance the business gives genuine change and goods in return for worthless paper.
If the business deposits cash through a bank or cash collector, compare rejected-note reports with the till incident log. A counterfeit discovered by the bank but absent from store records indicates the point-of-sale check failed. Feed that information back into staff training rather than treating the bank adjustment as a finance-only issue.
Include Scottish and Northern Ireland notes in staff awareness where customers commonly use them, but use the relevant issuer guidance. The Bank of England's scheme covers Bank of England notes specifically, and unfamiliarity with other legitimate UK notes should not lead staff to reject genuine money automatically.
Editorial Verdict
Counterfeit notes are rare, but the loss lands on the business that accepts them. Check notes when they are presented, train staff using current Bank of England materials and never knowingly put a suspect note back into circulation.
Keep an incident record and make staff safety part of the policy. Good cash controls turn counterfeit checking into a routine point-of-sale process rather than a confrontation or surprise at banking time.
Sources
- Bank of England, Advice for retailers and businesses: https://www.bankofengland.co.uk/banknotes/retailers-and-businesses
- Bank of England, Counterfeit banknotes: https://www.bankofengland.co.uk/banknotes/counterfeit-banknotes
- Bank of England, Banknote Checking Scheme: https://www.bankofengland.co.uk/banknotes/banknote-checking-scheme