Credit: Ultima Hora

FOUR Brits have been arrested for handing out fake bank notes at businesses in Magaluf.

Alarm bells went off when locals realised the criminals were paying with false €20 and €50 notes in bars and restaurants.

Although the notes looked identical to real ones, the texture of them was not perfect which made vendors suspicious.

La Guardia Civil and La Policia Nacional detained the suspects on Monday night in Torrenova.

After spending the night in a cell on Monday, the next morning the expats were taken by La Guardia Civil to the apartments where they were registered in Terranova.

In their bedrooms, officers found €5,000 in cash – €2,000 of which were false notes.

It is still being confirmed if the remaining sum is real money.

The Brits have reportedly been ‘living their lives to the full’ in Mallorca for some time now and regularly hang out in Magaluf’s famous tourist areas.

Investigators are trying to find out if the gang is merely a group of friends financing their stay on the island, or if they are part of a wider organisation.