Over $10,000 in fake Bermuda currency has been collected in 2005 alone, Police revealed yesterday while warning more counterfeit notes are in circulation.

Police have collected 130 counterfeit notes this year ? a sharp increase when compared to the 20 to 30 counterfeit notes found in circulation in past years.

Sadly, the quality of the counterfeit notes is also improving, Police reported, making fakes increasingly difficult to spot.

Detective Inspector Robin Sherwood told that some of the notes they have seen are of ?reasonable quality?.

?They are getting better than they were when they first started,? he said of the counterfeiters.

The fake bills ? mostly $50 and $100 notes ? are being made within the Island while Bermuda?s real currency is produced overseas in Britain.

While in the past, counterfeit notes were often passed off in nightclubs, Police said that practice has decreased while they are now being used more often at supermarkets, gas stations and other merchants.

And it is getting harder and harder for the average person to tell the difference between a fake note and a real one.

Police said the most accurate way to identify a real bill is by the silver strip that runs through every note.

?You don?t need to examine it,? said Detective Sergeant Dave Geraghty.

Most of the counterfeit bills found have been either copied or printed ? meaning the silver line is often dull, faint or missing altogether from the bill, which should be a clear warning to recipients.

Bermuda $100 notes containing the serial numbers D/1 038471, C/1 438445 and D/1 118858 are all fake, Police warned. Fifty dollar bills with the serial number D/1 889821 are also counterfeit.

The $100 bills are of better quality than the $50 bills, Police said, warning the public to be vigilant.

Other security features on the real bills are also lacking on the counterfeits, such as the tuna fish watermark, which should be visible on either side of legitimate currency, and a Cahow imprint which is only visible under ultraviolet light.

Some counterfeits also lack the four different colours seen in legitimate currency while Police also suggest checking notes for heavily engraved printing which can be felt with a fingertip.

Police are doing as much as possible to protect the public from falling victim to counterfeiters, but it is essential that the public exercise caution.

Being in the possession of counterfeit money is a crime, the officers said.

Producing fake currency is punishable by a maximum prison sentence of ten years or a $100,000 fine

In order to avoid prosecution, the public should hand over counterfeit bills to the Police, regardless of how they came in contact with the bill.

Police are encouraging anyone who has any information about counterfeit currency to contact them at 295-0011, the Fraud Unit at 299-4330 or Crimestoppers Hotline at 1-800-623-8477.

More information on counterfeit currency is available on the Bermuda Police Service website at www.bermudapolice.bm.