Exclusive: Counterfeit cash on the rise in New Zealand

There are fresh warnings for businesses to look out for counterfeit cash.

1News can reveal there has been a surge in fake notes this year.

It comes as an 18-year-old and 22-year-old were arrested and charged on Wednesday for possession and forgery of counterfeit currency.

So far this year in the January to April period, there have been 80 recorded occurrences of counterfeiting of currency.

Authorities said it's looking like it will surpass last year's total number of 146.

The North Island has been hit the hardest this year compared to last year.

In Hamilton, recorded occurrences of the counterfeiting of currency is almost twice as bad with 31 offences so far.

In Auckland, it is five times as bad, with 28 recorded occurrences compared to just five last year.

Police Minister Ginny Anderson said "it is a serious crime and any indication of that should be immediately reported to police".

Anderson said the trend is extremely concerning.

The Dairy Association said businesses across the country have been targeted.

President Sunny Kaushall said even his own pub, The Shakespeare Hotel, has received counterfeit cash.

"I'm not sure where it's coming from and who is behind this one, and it needs to be dealt with."

Kaushall said his members have also seen a rise in currency crime.

"In South Auckland and also I've seen those fake currency notes in Central Auckland.

"It's really going to hit our country... it's very bad."

Hamilton pub Biddy Mulligans has been struck twice with fake bank notes.

Soliel McDonald, the manager on at the time of the incident, said the scammer got away with it the first time by targeting a junior bartender using a fake $50 bill.

"She waited until we had swarms of people coming up to the bar to order rounds and she made her move."

The scammer then waited till the bar got busy and tried again with a $100 fake bill, but McDonald said that is when she caught the scammer.

"She thought 'oh I'm going to move to the next staff member' which was me.

"As soon as you touch it you can feel that it's fake. And so I said 'hey look, this is fake and I'm not accepting this.'"

It's not the first time Biddy Mulligans has been targeted.

Owner Duncan Otto said "it's really hard for all small businesses in Hamilton, especially after Covid".

"We've all suffered, we're all trying to get back on our feet and then you have this sort of stuff happen, it cripples you."

In response to the growing counterfeit cash problem, the Reserve Bank of New Zealand launched a campaign to raise awareness among retailers and hospitality workers.

The initiative aims to equip them with the necessary skills to identify fake banknotes, focusing on the distinct characteristics of counterfeit bills circulating in the market.

Senior advisor Peter Northcote said they are seeing fake bills across South and West Auckland, Hamilton, Rotorua, Tauranga and towns in-between.

"This year we're seeing about 55 fake notes a week through the country and over the past few months there has been a bit of a spate in Auckland, Waikato, and Bay of Plenty."

He said telltale signs of a scammer are when they attempt to distract a cashier and purchase low cost products with high denomination bank notes.

"They'll go to stores where they have high turnover, perhaps younger staff, perhaps staff who are new to the country and might not be as familiar with cash."

The Reserve Bank is now calling for businesses to stay vigilant and step up checks.

"It's about retailers giving their staff the right training and to have the confidence to do that check as they accept a note and put it in a till," Northcote says.

"If you take the time to do that and turn away a scam note then the problem will disappear."

The Reserve Bank said it's important to look, tilt, and feel if bills are real.

Northcote said the important questions to ask are "is it a sharp, good condition banknote? Is it intact? Is it polymer? New Zealand's banknotes have special security features that make them hard to copy."

In New Zealand, there are two series of banknotes in circulation — Series 6 (small windows) and the newer Series 7 (large windows) banknotes.

Finally, if you come across a fake bill, the Reserve Bank suggests putting it in an envelope to preserve the evidence and contact police.