Bank of England and FSB announce new partnership to tackle counterfeit notes in run up to Christmas

The Federation of Small Businesses (FSB) has become a strategic partner of the Bank of England’s Banknote Checking Scheme to protect small businesses from the risks associated with accepting counterfeit banknotes.

The introduction of new polymer notes and law enforcement successes have reduced the number of counterfeits being accepted. However, businesses across the UK are still being defrauded by counterfeiters and businesses that accept counterfeits can be repeatedly targeted.

An example of how criminals try to defraud businesses with counterfeit notes is to buy a low value item using a higher value note such as a £20 or £50.

Cash is still the number one payment method for 25% of small high street businesses’ customers, according to FSB’s research.

FSB will use its platform to raise awareness of the issue, which has reputational and financial impacts, to its small business members, encouraging them to sign up to the aforementioned scheme.

It is predicted by FSB that cash payments to small businesses will increase during this festive period as notes and coins can allow people to better budget and keep track of their spending during this cost-of-living crisis.

Sarah John, Chief Cashier and Executive Director Banking at the Bank of England, says: “I am delighted that the Federation of Small Businesses has become a Strategic Partner of our Banknote Checking Scheme to help reduce the number of counterfeit notes being accepted and to reduce losses to businesses.”

“The continued success of the scheme relies on key industry stakeholders such as FSB to raise awareness and to help us ensure the scheme continues to provide what helps their members the most.”

Martin McTague, National Chair at the Federation of Small Businesses, says: “I hope that through this new strategic partnership with the Bank of England we can help our members become aware of the use of counterfeit notes and importantly, equip them with the tools of how to spot them and what to do.”

“FSB views cash as an essential part of the economy despite an increase in digital payments.”

“Many small businesses rely heavily on cash; it provides a form of commerce to less digitalised businesses, acts as a check on pricing fees of card transactions and as a backup for when digital methods go down. For a quarter of our members, cash is still the number one customer payment method.”