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Police in China smash $30 million Lego counterfeiting operation

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Lego counterfeiting operation

Police in China have broken up a counterfeiting operation that is said to have been behind the manufacture and sale of fake Lego products estimated to be worth more than $30 million.

In a statement issued on Friday, police in Shanghai said they had raided an illicit factory in Shenzhen that was allegedly making and distributing LEPIN building sets, the contents of which were nearly identical to Lego products, and which carried branding clearly intended to resemble that of the well-known Danish toymaker.

Sold for a fraction of the price of the genuine article, LEPIN products are designed to appear to be almost identical to Lego brick sets, but are of significantly poorer quality, police said.

After identifying in October of last year that large quantities of the bogus blocks were widely available across the country, police launched an investigation that resulted in the discovery of more than 10 assembly lines and the seizure of over 630,000 completed LEPIN pieces that were estimated to be worth in excess of 200 million yuan ($30 million).

Pictures published on social media by police in the aftermath of the raid showed fake products that had clearly been made to look as similar as possible to Lego products.

These included items that had been made to resemble the firm’s Star Wars products, and others that were released to coincide with the new “Lego Movie 2”.

Speaking with China’s Xinhua news agency, Vice President and General Counsel for Lego China and Asia Pacific Robin Smith said that while the production of counterfeit products in the region have a significant impact on companies such as the Danish toymaker, the fact that fake toys are made without the proper safety checks is a more worrying concern.

In November of last year, it was reported that four companies in China had been ordered to stop making building blocks and miniature figures that infringed Lego’s trademarks after the Danish toymaker won an intellectual property lawsuit at Guangzhou Yuexiu District Court.

Those firms were found to have been producing and distributing LEPIN products, and infringing the trademarks of 18 Lego sets.

Speaking after the court made its decision, Lego CEO Niels Christiansen said: “We welcome the court’s ruling.

“We believe these decisions are well-founded in the facts and the law, and clearly demonstrate the continued efforts of Chinese authorities to protect intellectual property.”

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Major US hotel chains sued for failing to prevent sex trafficking in their rooms for decades

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US lawyers are suing 12 major hotel chains on behalf of women who claim the firms have profited from allowing sex trafficking and prostitution to take place in their properties.

In total, 13 women have accused hotel brands including Best Western and Hilton of failing to prevent sex trafficking from taking place in their rooms, alleging that the companies have made money from trafficked women and children being sexually exploited.

New York law firm Weitz & Luxenberg has filed litigation in a federal court in Columbus, Ohio, that brings together 13 separate lawsuits relating to hotels in a number of US cities, marking the first time the hospitality industry has faced such action.

Accusing the hotel firms of benefitting financially from the trafficking of women and children and “providing a marketplace for sex trafficking”, the suit alleges the companies have allowed sex trafficking to take place across their businesses for decades, and says it is time that they were held accountable for allowing the illicit trade to continue unchecked.

KOIN 6 News reports that one woman who claims she was forced by a pimp to sleep with as many as seven men every night is talking legal action against six hotel firms for the role they played in her abuse.

She is seeking $10 million in damages.

“Rather than taking timely and effective measures to thwart this epidemic, defendant hotels have instead chosen to ignore the open and obvious presence of sex trafficking on their properties, enjoying the profit from rooms rented for this explicit and apparent purpose,” the suit reads.

In a statement, Hilton Worldwide Holdings said: “Hilton condemns all forms of human trafficking, including for sexual exploitation. As signatories of the ECPAT [formerly End Child Prostitution and Trafficking] Code since 2011, we are fully committed, in each and every one of our markets, to protecting individuals from all forms of abuse and exploitation.”

Wyndham Hotels & Resorts said: “We condemn human trafficking in any form.”

Back in January, Marriott announced that it had provided 500,000 of its staff members with training on how to spot the signs that a guest might be a victim of human trafficking, and what they should do in the event they are faced with such a scenario.

Speaking at the time, David Rodriguez, Chief Global Human Resources Officer at Marriott International, said: “Hotels can unfortunately be unwilling venues for this unconscionable crime – and as a global hotel company that cares about human rights, we’re proud to be training hotel workers across the Marriott system to spot the signs.”

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UK charities warned to look out for social engineering spear phishing emails

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social engineering spear phishing emails

The UK’s Charity Commission has warned that scammers are impersonating charity workers via email and attempting to change employees’ bank details.

After receiving several reports of spear phishing campaigns targeting people who work at charitable organisations, the commission cautioned that fraudsters are using spoofed email addresses to pose as staff with authority to update employees’ banking information.

The fraudsters behind the social engineering scam typically write in their emails that they have changed their bank details or opened a new account.

Alan Bryce, head of development, counter fraud and cyber crime at the commission, said: “We know several charities have been targeted by this fraud and we want to ensure others are equipped to protect themselves.

“So, our message to charities is clear: read and understand our guidance on fraud, and check who’s sending an email whenever you receive a message about changes to staff bank details.”

In advice on how charities can protect themselves, the commission said organisations should review internal procedures regarding how employee details are amended and approved, and train staff not to click on links or open attachments in suspicious emails.

A report published by the commission to coincide with the UK’s Charity Fraud Awareness Week, which took place in October, revealed that over half of fraud carried out against charities is committed by perpetrators known to the organisation affected.

The study found that while over two-thirds of UK charities consider fraud to be a major risk, less than 9% offer fraud awareness training to their staff members.

More than half (58%) of charitable organisations surveyed for the study said they believe cyber crime poses a major threat to the sector.

In a separate report also published in October, the commission and the UK Fraud Advisory Panel revealed that one in every six major organisations that make up Britain’s £80 billion ($105.4 million). charity sector will be affected by cyber crime over the course of the next two years.

Twenty-two percent of charities said they believe that cyber crime is a greater risk to the sector than any other threat, with larger charities typically being more likely to appreciate the risk of cyber crime.

“This may be because larger charities generally have a greater capability to detect cyber crime,” the report concluded.

“Many small and medium sized charities are less aware of the cyber crime threat, yet are probably more at risk.”

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Hewlett Packard seizes counterfeit products worth $11 million in India as part of its global anti-fraud programme

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Hewlett Packard seizes counterfeit products

US technology giant Hewlett Packard (HP) has seized counterfeit products worth INR 80 Crores ($11.26 million) in India over the course of the past year as part of its global Anti-Counterfeiting and Fraud (ACF) programme.

Releasing information about the last 12 months of the campaign in India as part of its efforts to raise awareness of the extent of the piracy of printing supplies in the country, HP revealed that the Delhi-National Capital Region leads the nation in terms of seizure value, with confiscations worth 33.5 Crores taking place there over the past year.

Bangalore finished the year in second place with seizures of INR 22 Crores, followed by Mumbai and Chennai with 6.5 and INR 3.5 Crores, respectively.

HP worked with police across the country to carry out raids on more than 170 premises, resulting in the arrest of over 140 suspects and the seizure of completed and unfinished bogus cartridges, counterfeit packaging materials, and various sets of labels that were used during the manufacture of HP print supplies.

Noting in a statement that counterfeit print supplies can pose a significant business risk to companies that use them in the form of printer damage and associated downtime, HP said it works in close cooperation with law enforcement agencies the world over to crack down on counterfeiters that produce fake versions of its products.

Back in June, a survey commissioned by HP revealed that businesses around the world were at a greater risk of being sold fake printer supplies than ever before.

The poll, which was carried out on behalf of HP by market research firm Harris Interactive, found the availability of counterfeit printer products was being driven by an increasingly broad supplier ecosystem, a lack of certainty among buyers that their purchases were genuine, and an absence of awareness of the risks of using counterfeit goods.

The study showed that $3 billion is lost every year to counterfeit print products.

Speaking at the time, Glenn Jones, Director of HP’s ACF programme, commented: “Every one of the key market indicators we monitor show a significant increase in the risk of counterfeit print supplies.

“For companies like HP, counterfeits undermine decades of focused research and testing aimed at creating superior ink and toner, and reliable, high-quality cartridges for our customers.

“For users, fakes cause a significant increase in print failures, low page yield, poor print quality, leaks and clogs, in addition to voiding hardware warranties.”

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