Fake bank notes have been discovered across the region over the busy holiday period, prompting banks to issue warnings to small businesses and consumers.

In Short

• Local Outbreak: Fake banknotes were successfully used at several retail outlets in Hay during the busy holiday period, leaving businesses with financial losses.

• The "Scrunch" Test: Genuine Australian polymer notes should spring back to their original shape immediately after being squeezed; if it stays crumpled or feels like paper, it is likely fake.

• Advanced Features: Check the "Next Generation" clear strip - the wings of the bird should move and change colour when tilted.

Back Country Bulletin has received reports that notes have been used in regional towns, leaving several retail outlets short at the till.

While Australian banknotes are some of the most sophisticated in the world, the Reserve Bank reminds everyone to remain vigilant against counterfeit currency.

A ‘fake’ might look the part at a glance, but the differences are stark. Unlike many overseas currencies, Australian notes are printed on a specialised polymer.

This plastic material gives them a distinct feel that is difficult to replicate.

A simple way to verify a note is the scrunch test - a genuine banknote should spring back instantly to its original shape when released.

If the material stays crumpled, feels like thick paper, or tears easily along the edges, it is likely a counterfeit.

The clear window should be a seamless part of the note rather than a separate piece of plastic taped or glued on.

On older series notes, you should rub your finger over the white image in the window to ensure the ink does not scratch off.

You should also be able to feel a small, raised embossed number corresponding to the note's value.

On the latest notes – the Next Generation series - which features a clear strip from top to bottom, look for the flying bird.

When you tilt the note, the bird’s wings should move and change colour.

These newer notes also include a prominent patch on the opposite side that displays a rolling bar of colour moving up and down as the note is tilted.

Holding a note up to a steady light source reveals hidden layers of security - a diamond-shaped pattern on both sides that aligns perfectly to form a seven-pointed star inside a circle.

Additionally, a faint shadow image of the Australian Coat of Arms should become visible within the plastic itself.

Genuine notes also feature ‘Intaglio’ print, which is a raised dark ink that can be felt by running your fingernail across the portraits or the large numerals.

While it is not an offence to accept a counterfeit note, a business will find themselves out of pocket.

All fake or suspect notes should be placed in an envelope to retain evidence, and be reported to Police immediately.