Counterfeit $20 notes in circulation

Police in Waihi and Paeroa are warning businesses to be on the lookout for fake $20 notes circulating in the two towns.

Waihi police have recovered 10 of the fake notes that appear to have been passed around various people in the town in recent weeks. Police in Paeroa have been given three of the notes.

Senior Sergeant Brian Millar of Waihi police says the notes are very convincing and appear to be of a high quality.

The only difference between the fake notes and real money is the word "SPECIMEN" in the top right corner of the note in the space that would usually carry a serial number.

The fake notes also have no water marks.

Mr Millar says shops and businesses in both towns should be aware the notes are circulating. Anyone caught trying to use the fake notes faces criminal charges.

"These have obviously been very easy to pass off as genuine and we would expect... more of them in circulation.

"Businesses need to keep a close eye out for them and tell us immediately if any are presented to them."

- NZPA