Police are cautioning retailers to remain vigilant against counterfeit currency during the bustling holiday season.

Throughout the year, several instances of counterfeit notes have been reported across New Zealand.

To thwart falling victim to fraudulent cash, both retailers and the public are urged to enhance their understanding of banknote security and promptly report any counterfeit notes they encounter.

Senior Police Document Examiner Jessica Owen emphasizes the importance of distinguishing between legal banknotes and counterfeits.

According to Owen, the look-feel-tilt test is a reliable method.

For instance, if a banknote features a bird at the lower left front, tilting it back and forth will reveal a rolling bar of colour moving up and down the bird.

Holding it up to the light will expose a fern in the centre of the bird.

For older-style banknotes, a small oval window at the front right can be inspected.

When held up to the light, a watermark of the Queen appears to the left of this oval window.

Additionally, both styles of genuine banknotes, when exposed to a UV torch or blacklight, exhibit a glowing denomination patch on the front left.

Concerningly, there has been a gradual rise in counterfeit notes over the past couple of years, including those detected in the national cash handling system by the Reserve Bank.

This volume is approximately double the notes reported to the Police.

Owen emphasizes the financial impact on retailers and stresses the importance of diligently checking for security features and conducting the look-feel test to mitigate these losses.

Anyone discovering a counterfeit note is urged to report it to the Police promptly.

It is crucial to note that manufacturing counterfeit notes or knowingly circulating them is a severe offence.

Possession of forged banknotes can lead to imprisonment, with a maximum sentence of seven years or up to 10 for usage.