Rockhampton police are warning residents to keep an eye out for counterfeit money.

Police have recorded seven cases of fake $50 and $100 bills being used over the past two months.

Michael Anderson from the Reserve Bank of Australia says counterfeit money should be reported to local police.

“There are a number of security features you can look for,” he said.

“The bank notes need to be printed on plastic and another one is if you hold it up to the light, you can see a Federation Star print on both sides.

“Fortunately in Australia most of our counterfeits are of quite low quality and really quite easy for the public to identify if they look.”

He says if people have doubts about notes, they should take action.

“One, we ask them to handle it as little as possible,” he said.

“We ask them to retain any information they might have about who passed the counterfeit and most importantly we ask them to hand it to the police.”