Much as it does for retailers, the Christmas period presents huge opportunities for counterfeiters and fraudsters. Keen to take advantage of shoppers looking to save money over the holidays, rogue traders who sell fake items are particularly active over the holiday season, seeking to cash in on the spending bonanza that takes place in the weeks and months prior to the big day. The growing popularity of pre-Christmas sales such as Black Friday and Cyber Monday both in the US and in an increasing number of other western countries has only added to the rich pickings available to counterfeiters at this time of year.
The importance of festive season sales to fraudsters is often exemplified by a major upticks in the number of counterfeit goods that are seized at ports and airports on both sides of the Atlantic in the final quarter of the year, a high number of which originate from countries such as China and Hong Kong. Many consumers consider the purchase of counterfeit products to be a victimless crime, but while it may be the case that buyers of fake items rarely face punishment for doing so, the consequences of trying to save money by picking up knocked-off consumer goods can be severe. Apart from depriving intellectual property rights holders of revenue, buying fake products to give as gifts at Christmas could pose a serious health risk to the recipients of your presents, and in some cases could prove deadly.
Fake electrical items are among the most dangerous counterfeit products available at this and any other time of year. While picking up a knocked-off Apple iPhone or Samsung Galaxy handset might save you a sizable sum of money, the potential for counterfeit electronics to do serious harm is high. Fraudsters are able to sell counterfeit electrical items for such low prices because they do not have to put their products through the types of rigorous safety testing that genuine manufactures are required to carry out by law. While this helps keep the cost of fake electricals down, it also means they are very much an unknown quantity from a health and safety perspective.
At the end of November, police in the UK launched a campaign to raise awareness of counterfeit electrical goods being sold in the run-up to Christmas, warning consumers to only buy such items from reputable retailers. As well as the chance that counterfeit electrical products could cause injury or damage to property by blowing up or starting a fire, anybody who suffered injury or loss as a result of owning such an item would have little opportunity to seek redress if something did go wrong, mostly on account of the fact that it would likely prove all but impossible to trace the manufacturer of the product in question.
Children’s games and toys are another major money-spinner for counterfeiters over the Christmas period. As is the case with fake electrical items, knocked-off kids’ toys and games may be cheap, but will not have been through safety testing. Some fake children’s toys have been found to contain unsafe levels of carcinogenic chemicals, while others are often made up of parts that could cause kids serious injuries or pose a choke risk if swallowed. High-end cosmetic products are another favourite of the criminal gangs behind the global counterfeiting trade during the festive season. Fake beauty products will almost without exception be of an inferior quality to the genuine items they are intended to mimic, but more worryingly could contain a range of harmful substances including lead, arsenic, mercury, cyanide, paint-stripper and even faeces. Some of these ingredients could cause problems ranging from mild skin irritation, to chemical burns, and even long-term damage to the central nervous system and brain, which may be permanent.
Aside from the possibility that buying fake items could put you or somebody you care about in danger, any counterfeit products you purchase may have been produced in an overseas sweatshop, or by victims of modern slavery. On top of this, profits made from the sale of bogus consumer goods are routinely reinvested in other forms of criminality, including terrorism. In other words, the money you use to purchase a knocked-off item could end up funding groups such as al-Qa’ida and Daesh. Then there’s the chance that your banking details could be stolen while buying a fake item.
Consumers are frequently advised that they can avoid buying counterfeit products by being wary of deals that appear too good to be true, and by thoroughly inspecting an item that could potentially be fake. While this is sound advice, the best way of protecting yourself is to only buy from reputable sellers you know and trust. While it can be tempting to allow yourself to become seduced by the prospect of a bargain, especially at Christmas, the consequences of knowingly or inadvertently buying counterfeit products can be devastating.
The deadly codeine-based cough syrup cocktail US pop culture is spreading across the globe
Back in the early 2000s, drug users in search of alternative experiences were able to turn to websites selling a new generation of substances that were at the time referred to as “research chemicals”. For a number of years, seemingly exciting new ways in which to get high were available at the click of a mouse from companies based mostly in the US, which sold these drugs globally ostensibly solely for the purposes of scientific research. Those who wished for something a little different from more traditional illicit substances such as cocaine, ecstasy or LSD were able to obtain obscurely-titled chemicals such as 5-MeO-DMT or 1-propionyl-lysergic acid diethylamide, many of which aimed to mimic the effects of MDMA or psilocybin, the active ingredient in magic mushrooms.
At the time, narcotics enthusiasts viewed the online availability of research chemicals as ushering in a new era in which they would be able to easily get their hands on an ever-changing and evolving menu of exotic substances. Over a number of years, many of these chemicals morphed into so-called legal highs, which were sold legitimately as an alternative to the illicit drugs they were intended to emulate. Now outlawed in many countries, these drugs are now mostly consumed by members of vulnerable groups such as prisoners and the homeless, having been largely rejected by recreational users.
Nearly 20 years on from the controversy that surrounded the online availability of research chemicals, the imagined future of an endless supply of new psychedelic substances has failed to become a reality. Instead, recreational drug users have by and large returned to using more traditional substances, while at the same time beginning to abuse prescription medicines in greater number – a practice that has become particularly popular among young people. Peculiar as it may have sounded just after the turn of the millennium, instead of experimenting with then-unheard-of new drugs, the youth of today have turned to prescription medication used to treat conditions such as anxiety, attention deficit disorder and pain, such as Xanax, Adderall and Percocet. Somewhat more bizarrely, young people across the world are increasingly abusing a drug derived from codeine-based cough syrups, a cultural phenomenon that was first made popular by rap artists in the US during the 1990s.
Commonly referred to as Purple Drank or Purple Lean, the substance is made by mixing prescription-strength cough syrup with fizzy pop drinks or sweets. Once consumed, Purple Lean provides users with a sense of euphoria and dissociation from the body. While long-term use can lead to addiction and a whole host of health problems, as with any opiates taken in large enough doses, Purple Lean can kill. The chances of dying from a codeine overdose while drinking Purple Lean rise significantly when it is consumed with other drugs or alcohol. While taking the drug has been popular in the US for more than two decades, evidence suggests that its use is spreading to other countries, thanks in no small part to a new generation of American rappers who advocate its benefits in their songs.
A recent investigation conducted by UK radio station LBC revealed that British children are making Purple Lean after obtaining liquid codeine from drug dealers on Instagram. One UK user told the broadcaster that he became interested in the drug after watching rappers consume it on social media. The rising popularity of Purple Lean both inside and outside of the US has been very much driven by depictions of its use on online platforms such as YouTube and Instagram, with a study published last year by the JMIR Public Health Surveillance journal finding that “the prevalence of codeine misuse images, glamorising of ingestion with soda and alcohol, and their integration with mainstream, popular culture imagery holds the potential to normalise and increase codeine misuse and overdose”.
In Nigeria, the abuse of codeine-based cough syrup became such as issue that the country’s government last year banned the production and importation of such products after a BBC investigation revealed that teenagers were becoming addicted. Ministers said at the time that the ban would apply to all sales of cough syrup containing the drug without a prescription across the whole country, and that no new import licences for codeine as an ingredient for cough syrup would be issued.
Abusing cough mixture might well sound absurd to members of the so-called “Trainspotting Generation” who were more used to taking substances such as heroin and ecstasy in the 1990s, but consuming Purple Lean can be equally as addictive and deadly as almost anything they might have taken while they were young. It is not without reason that some people refer to the drug as “liquid heroin”. While the feared advent of an age in which an ever-changing array of new substances would be available online has not materialised, it is perhaps more alarming that young people are now becoming addicted and in some cases dying as a result of consuming medicine that is routinely kept in many people’s bathroom cabinets.
International pickpocketing gangs must be treated as serious and organised criminal networks
While most members of the public perceive pickpocketing as a petty crime, conducting the activity at scale can be a hugely profitable business for organised criminal networks. So much so in fact, that gang bosses in Eastern Europe routinely send cells of pickpockets out on to the streets of major cities such as London, Paris and Oslo to fleece members of the public of their cash and valuables. Taking advantage of EU freedom of movement laws, these groups are dispatched to target people in city centres, on public transport networks, and at major sporting events and music festivals.
The substantial sums of money that can be made from organised pickpocketing make it possible for gang bosses to regularly move the petty thieves who work for them around Europe as part of their efforts to make sure police in one location do not become too familiar with their faces. Thanks to the cheap and easy availability of budget air travel, pickpocketing cells can be sent out from countries such as Romania or Bulgaria to work in one location for a few weeks, before returning back to their home countries and then being sent off somewhere else.
In most cases, the foot soldiers used by pickpocketing gangs will be paid relatively small sums of money for their work, and are considered largely expendable by the bosses for whom they work. Conversely, those at the top of the criminal organisations that run these types of operations are able to fund lives of luxury, all the while keeping themselves at arm’s length from the illegal activities from which they profit. This makes it much less likely they will be apprehended by law enforcement. For the most part, the pickpockets themselves are vulnerable people such as the homeless or migrant children who would be better described as victims of human trafficking than organised criminals. Most often recruited from the streets of their home countries, they are sent out to thieve from people in the streets of Europe’s major cities, while typically living in extremely poor conditions themselves.
Instead of treating the issue as a petty crime, law enforcement agencies across Europe and in other countries are belatedly beginning to view this type of activity for what it is; serious and organised criminality that has the potential to fund other illegal acts. Earlier this month, Europol held a conference on the subject at its headquarters in The Hague, convening scores of experts from member states and beyond to share their experiences of tackling organised pickpocketing gangs. Delegates agreed that stronger international cooperation would be required to defeat the criminal organisations behind these types of operations, and that law enforcement agencies in different countries must become better at “exchanging information and to support each other in investigations, operations and regarding strategic approaches”.
Europol and its partners are right to take the problem more seriously than it has been in the past, with a number of recent cases highlighting how organised pickpocketing gangs are continuing to capitalise on the fact that the crime is widely perceived as being petty and low-level in comparison to other forms of organised illicit activity such as drug trafficking and immigration crime. In September 2017, police in Greece broke up a prolific Albanian pickpocketing gang, members of which were said to be raking in more than €3,500 ($3,910) a day while targeting visitors to tourist hotspots and on public transport in Athens. It is thought the gang may have operated in and around the city for nearly a decade. In Paris last year, members of an organised Bosnian crime gang that was thought to have made almost €3 million by forcing migrant children onto the streets of the French capital to thieve from members of the public were charged with running a human trafficking network. At the end of April, Extra.ie reported that organised pickpocketing gangs from Romania were flying multiple cells of street thieves into Ireland on budget airlines to target pensioners as they took cash out of ATMs.
Currently, it is all too rare that the leaders of the networks behind organised pickpocketing operations face justice for their crimes, the most heinous of which is arguably the exploitation of the vulnerable foot soldiers they compel to do their bidding. While arresting and imprisoning Individual street thieves much lower down the pecking order might temporarily slow incidents of this sort of crime in any given area, they are quickly replaced by the gang leaders for whom they work. If global law enforcement agencies are to stand any real chance of reducing organised pickpocketing on the streets of the world’s major cities, the practice must be treated with the same vigour as any other form or serious and organised crime, and that means going after the gang kingpins who profit most from it.
Why counterfeiters are still able to operate all but freely on the surface web
New technology such as the dark web, virtual currencies and encrypted messaging apps have revolutionised the manner in which most forms of serious and organised crime are carried out. These days, illicit networks involved in activities such as drug smuggling, human trafficking, organised immigration crime, child sexual exploitation and the poaching of endangered wildlife will typically use digital tools to some degree during the course of their operations. In the majority of cases though, these networks are not so keen on using internet-related technology out in the open, preferring instead for obvious reasons to tap tools that keep their businesses hidden from the eyes of law enforcement agencies and members of the wider public.
Counterfeiters, on the other hand, have been able take full advantage of the growth of the surface web across the world, seemingly able to circumvent the woefully inadequate measures put in place to crack down on their illicit activities with ease. While it may be the case that some counterfeiters sell their bogus products through closed social media groups, the nature of their business and the lax controls put in place to prevent them from operating mean many have few qualms about trading in plain sight.
While it is of course quite right that illicit narcotics and the body parts of endangered species cannot be traded openly on the surface web, it has to be asked why the availability of counterfeit goods online remains so widespread, in spite of law enforcement agencies around the world and big technology firms repeatedly promising to take more serious action against the peddlers of fake products on the internet. Considering that the proceeds from the sale of counterfeit goods are routinely used to fund other forms of organised crime and terrorism, and that fake items pose a significant health and safety risk to the consumers who end up buying them, it is a wonder that this issue is not taken a lot more seriously than it is.
If anything, the problem appears to be getting worse, with a report published in March by the Organisation for Economic Co-operation and Development (OECD) and the EU’s Intellectual Property Office revealing that pirated and counterfeit goods now account for 3.3% of all global trade. The study estimated that the worldwide value of counterfeit and pirated goods was $509 billion in 2016, the latest year for which data was available, which was up from $461 billion in 2013. The authors of the report noted that the increase had coincided with a time during which online trading platforms had made it much easier for the criminal networks that produce fake goods to sell to a growing global customer base.
Earlier this week, the US Better Business Bureau (BBB) published a new study in which it warned that America is facing a counterfeit epidemic, noting that one in four of the country’s online shoppers have bought a fake item online, losing on average $350 each. “Almost anything that can be shipped can be counterfeited and sold online, including everyday products such as printer ink, headphones, phone chargers, athletic shoes, cosmetics, and even car parts,” the BBB said in its report.
After explaining what consumers should do to avoid falling victim to online counterfeiters, the non-profit makes a number of recommendations, calling for credit card processors to deny merchant accounts to sellers of counterfeit goods, and suggesting a system that would allow victims to claim chargebacks from their card provider after buying a fake item. While the BBB also called for the further investigation of Chinese websites that sell fake goods, it fell short of demanding that ecommerce platforms such as Amazon and eBay that profit from third-party sellers offering bogus items face meaningful penalties for doing so.
Speaking with CBS News last month, Amazon’s Vice President of Consumer Trust and Partner Support Dharmesh Mehta told viewers that the online retail giant is making progress when it comes to reducing the number of counterfeit items available on the company’s website. He was speaking just weeks after US President Donald Trump demanded that ecommerce platforms do more to crack down on the sale of counterfeit products by third-party vendors. Mehta admitted that Amazon is a long way off eradicating fake items being offered by third parties, and he is not wrong. Perusing product categories that are commonly targeted by counterfeiters on Amazon, it does not take an expert in intellectual property to see that the site is flooded with fake items.
This will almost certainly remain the case while platforms on which third party sellers are allowed to trade face no real action for allowing counterfeits to be sold. Instead of equipping consumers with the knowledge they need to avoid falling victim to counterfeiters online, organisations such as the BBB could spend their time more wisely lobbying for meaningful punishments for legitimate ecommerce sites that facilitate and profit from the global trade in bogus goods.
- Interpol-coordinated operation results in shutdown of international dark web paedophile ring
- The deadly codeine-based cough syrup cocktail US pop culture is spreading across the globe
- Scotland is drug death capital of Europe, new study reveals
- European police forces dismantle major organised crime network that made €680 million in two years
- Australian terrorist financing investigation results in disruption of major cigarette smuggling conspiracy
9 February 2018
9 February 2018
8 February 2018
28 November 2017
28 November 2017
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