Police have seized tens of thousands of dollars in fake bank notes and say the production of counterfeit currency is on the increase.

The figures were revealed yesterday as officers warned members of the public to watch out for counterfeit bank notes and scams encouraging people to divulge their financial details.

The latest scam involves cold callers from overseas who claim people have won a free or discounted vacation in return for a 'credit card booking fee'.

The Bermuda Police Service is also warning residents to be on their guard against fraudsters 'phishing' for bank details on the Internet. Meanwhile, detectives say counterfeit currency is on the rise, with people using household inkjet printers to replicate hundreds of fake bank notes.

This year Police have seized more than $12,000 in bogus Bermudian bills. In the nine months to September, the Fraud Unit received more than twice the value of counterfeit notes than the whole of 2007, in which $5,563 was seized.

Detectives say the influx will only get worse as Christmas approaches. According to Police, passing off counterfeit notes is "an easy crime to commit", as many go into circulation via nightclubs and other dark-lit places.

Those caught can expect a maximum jail term of ten years and a $10,000 fine, but it is the man in the street who ultimately suffers through rising prices.

Inspector Charlene Thompson of the Fraud Unit said Police seized "in excess of $5,000" in counterfeit notes during the last quarter alone.

"It's the customer who takes the loss at the end of the day," said Insp. Thompson. "If those businesses continue to lose money, eventually they will have to put their prices up and this then affects the customers.

"This is why the courts look at it as a serious offence – because it affects the economy, and that affects us all."

The Fraud Unit is offering businesses advice on how to deal with bogus bills.

"We would also like to inform businesses that we are happy to offer training to their employees on how to detect counterfeit currency," said Insp. Thompson. The main thing people should look out for is the tin foil insignia on a note, which if genuine, will reflect in the light.

Sergeant David Geraghty of the Fraud Unit said: "The quality of paper being used is getting much better and whilst the quality of printing is very good, every single note we have found does not have the tin foil.

"All of the fake currency does not have that reflective surface, and it's the same on the dotted (vertical) line which goes through the note."

He said Police were receiving ten to 20 bills each day from financial institutions whose machines have detected the fake currency.

Fraud Unit officers are also concerned about con artists obtaining money over the telephone or Internet.

Insp. Thompson said: "We would like to warn members of the public on the recent cold calls being made to Bermuda residents offering free or discounted vacations subject to a credit-card booking fee.

"Free means without cost and persons need to be wary of these types of schemes and others which inform individuals they have won, inherited, been willed or given a large quantity of money.

"If you know you have not entered anything to win or you don't have a wealthy relative in some known or unknown parts of the world, then ignore them.

"We warn members of the public not to divulge credit card or other financial details to persons over the phone.

"If it seems too good to be true it probably is, and the person who is told they are the winner turns out to be the loser in the end."

Insp. Thompson said: "If people have any doubts, please call us and we will check it out. That is our job and we will be more than happy to let you know whether it is a legitimate scheme or not."

The vacation scam is not the only fraud targeting the residents of Bermuda.

Sgt. Geraghty said last year, one woman lost more than $3 million in an 'advanced fee fraud' which originated in Nigeria.

The fraudsters offered her millions of dollars for a sum of cash, but then kept adding 'government' and other fees to arrange the so-called 'transfer'.

He said: "Only this month a woman purchased a puppy over the Internet for $8,000, but unfortunately it was a scam.

"She was then contacted by further scam artists, one of whom was supposedly a lawyer who claimed to have recovered all of her money – in return for $2,000. This was however, the same scam."

Sgt. Geraghty said: "Every day we get phone calls from people who have become victims or who are about to become victims. We would sooner have someone call us and save them from being a victim rather than afterwards."

Due to the nature of being conned, the Police are aware that many people may not make a complaint, due to feeling "embarrassed".

Insp. Thompson said: "We predict there are a lot of people out there who have been scammed but who have not made us aware of it and who probably feel embarrassed because they don't want people to know they have been taken that way."

She said that anyone receiving telephone calls, letters, e-mails or faxes asking them to disclose their banking details or US citizen social security data should be on their guard.

"Your financial institution already has that information and would never solicit or request that type of information via those mediums," she said.

"Please do not give out your personal or financial information."

Anyone who is concerned or in doubt as to whether a telephone call, letter, e-mail or fax is genuine should contact the Fraud Unit on 299 8023 or email: fraud@bps.bm

* Have you been a victim of a scam? Let us know: e-mail news@royalgazette.bm.