UK retailers are being urged to stay alert after counterfeit banknotes removed from circulation more than doubled in 2025, reaching their highest level in several years.
The Bank of England said about 200,000 fake banknotes were withdrawn from circulation during the year, up from around 99,000 in 2024. Despite the sharp increase, counterfeit notes remain extremely rare, representing less than 0.0041% of all Bank of England banknotes in circulation.
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For retailers, the figures reinforce the importance of checking cash payments carefully, even as card and mobile payments continue to grow.
Retailers urged to strengthen cash checks
Retail businesses are often the first point where counterfeit banknotes are detected. Shops, supermarkets, convenience stores and hospitality businesses all face the risk of accepting fake cash, which has no value and cannot be exchanged for genuine money.
Responding to the latest figures, the British Independent Retailers Association (Bira) highlighted the importance of staff training and encouraged businesses to make use of the Bank of England’s free counterfeit detection resources.
The organisation said training materials, online tests, videos and printable guides can help retailers recognise genuine King Charles III and Queen Elizabeth II banknotes more confidently.
The Bank of England says counterfeit banknotes are “rare and also worthless”. It advises retailers to check several security features rather than relying on a single test.
Polymer £5, £10, £20 and £50 banknotes contain transparent windows, holograms, raised print and colour-changing features that help distinguish genuine notes from counterfeits.
Polymer notes continue to reduce fraud
Although counterfeit detections increased during 2025, the longer-term trend remains well below levels recorded before polymer banknotes replaced paper notes.
The Bank of England says counterfeiting has “substantially reduced since 2019”, reflecting stronger security features, the withdrawal of paper notes, successful police action against organised counterfeiters and the continued growth of electronic payments.
The face value of counterfeit notes removed during 2025 was about £4 million, with fake £20 notes continuing to account for the largest share.
Around five billion genuine Bank of England banknotes, worth approximately £90 billion, remain in circulation across the UK.
Cash still plays a vital retail role
Cash remains an important payment method for millions of consumers despite the continued growth of digital payments. For many retailers, particularly independent stores and local businesses, effective cash handling remains part of everyday operations.
The latest figures underline the value of regular staff training and consistent checking procedures at the till. Bira says the Bank of England’s freely available training materials provide retailers with practical guidance for identifying genuine banknotes and reducing the risk of financial losses from counterfeit cash.
The Bank of England advises anyone who suspects they have received a counterfeit note to hand it to the police.
It also reminds businesses that making, possessing, importing or knowingly passing counterfeit banknotes is a criminal offence that can carry a prison sentence of up to 10 years.
