THOUSANDS of pounds in fake notes are circulating in Blackburn and Darwen after a teenager found £50,000 in counterfeit cash dumped near his home.

An investigation was launched when another teenager was arrested after attempting to use bogus Scottish notes in Blackburn's Woolworths.

The arrest led police to an address on Watery Lane, Darwen, where a 15-year-old revealed the notes he had found while playing near his home last Wednesday.

He had discovered them in a cardboard box next to a metal fence at the bottom of a steep, muddy embankment off Watery Lane.

Det Sgt Paul Elms of Darwen CID said: "The boy hadn't been using them because he knew they were fake so they were being used for scrap bits of paper. There was probably a lot more than that when they were found.

"We have recovered around £34,000 but other people who were with him grabbed handfuls of the notes and there could be as much as £20,000-worth still in circulation."

Even though Scottish money is legal tender in this country, police are now urging businesses in Darwen and Blackburn to be wary.

Det Sgt Elms said: "People in Darwen should stop accepting it altogether or be very wary about the £10 notes."

The fakes have a watermark on one side only and are photocopies of the real thing.

DS Elms said: "On close inspection they are fairly obvious fakes and people need to be very careful now that we know this is happening."

Scott Hamilton, manager of Blackburn Woolworths, said: "They are not actually that easy to identify. Our staff only spotted them because four of them were handed over at the same time.

"We had actually missed one of the notes earlier in the day and so they are not easily spotted. When I looked at one, I could see it had the watermark but only on one side.

"The main difference was that it was a lot rougher and harder. We will still be accepting Scottish notes but all our staff are now aware of the problem."

Matthew Bishop, manager of Booze Buster, Duckworth Street, Darwen, said: "It's our company policy not to accept Scottish tender because of the high amount of forgeries. We stopped taking it two years ago because staff found it very difficult to spot the fakes."

Steve Spencer, manager of Darwen Sainsbury's store, said: "This issue has never been brought to my attention by staff but we will have to think about whether we will continue to accept Scottish notes for the time being. It is something the company managers will have to discuss."

John Brown, manager of Boots on Market Street, Darwen, said: "We haven't had any experiences with fake Scottish notes over the past week but I'll make sure that all my staff are aware of this problem from now on."

Anyone with any information on the counterfeit notes should contact Darwen CID on 01254 353842.