The amount of counterfeit currency seized in the United Kingdom has doubled over the past year, according to recent figures from the Bank of England. In 2025, authorities removed 200,000 fake notes with a face value of approximately £3.97 million from circulation, a significant increase from the 99,000 counterfeit notes valued at £2.09 million seized in 2024.

The Bank of England attributes the surge primarily to polymer banknotes being produced overseas and then smuggled into the UK. Polymer notes, replacing earlier paper notes, have been targeted by counterfeiters, with the new designs expected to help curb fraud. The bank has introduced new notes featuring British wildlife to replace those bearing historic figures such as Sir Winston Churchill, which are reportedly harder to copy.

While the overall proportion of counterfeit notes remains extremely low—less than 0.0041% of notes in circulation, or about one in 24,390—experts warn that smaller retailers and online sellers are increasingly targeted by fraudsters. Andrew Goodacre, CEO of the British Independent Retailers Association, highlighted the impact on small businesses, noting that retailers effectively bear the financial losses when counterfeit money is accepted since they cannot use the fake currency to restock inventory. He described the situation as theft, adding that criminals often employ distraction and intimidation tactics to coerce shopkeepers or online traders into accepting counterfeit notes, particularly £20 denominations.

Victoria Cleland, Chief Cashier at the Bank of England, acknowledged that while counterfeiting is rare overall, smaller retailers can be seen as easier targets. She stressed the importance of manual checks for authenticity, including looking for security features like a changing hologram and clear see-through windows on the notes. Cleland added that 2024 marked the lowest level of counterfeit notes in three decades, which makes the subsequent rise more noticeable.

Authorities from the Bank of England, the National Crime Agency, and police forces continue to collaborate to counteract the influx of counterfeit currency. Efforts include targeting the production of fake notes overseas as well as cracking down on their distribution within the UK. The Bank confirmed that it is closely monitoring the situation and maintains a dedicated team to support law enforcement agencies in addressing the problem.