Survey:
Counterfeiting Surged towards $1 Trillion (USD) in December!
Released on
= January 17, 2005, 1:23 pm
Press Release
Author = Gieschen Consultancy
Industry = International
Trade
Press Release
Summary = During the month of December the value of counterfeit
items sold and seized was $875,252,592,693 USD from 227 incidents
involving more than 14,987,023 items. As reported by Gieschen Consultancy,
the 8 most aggressive countries that pursued counterfeiters were
Malaysia (6 incidents worth $875
Billion), USA (112 incidents worth $93,561,943), Canada (4 incidents
worth $54,110,000), Japan (7 incidents worth $35,244,200), UK (12
incidents worth $24,581,300), Taiwan (1 incident worth $9,460,000),
China (12 incidents worth $8,499,900) and India (27 incidents worth
$6,837,900).
Press Release
Body = Monday January 17, 2005 -- Calgary, Canada -- Based on the
past month of worldwide counterfeit enforcement activity (investigations,
raids, seizures, arrests, charges, convictions, sentences, civil
litigation, public announcements), as reported through the DOPIP
Security Counterfeit Intelligence
Report, more than 227 incidents were analyzed from 35 countries.
The profile
of the average counterfeit operation:
• Involves
2 people, averaging 32 years old. The youngest person involved was
14, the oldest was 68.
• Sells more than 17,378 counterfeit items valued at $488,828
USD items before being caught.
• When caught, more than 48,644 counterfeit items are seized.
• The most profitable items to counterfeit (based on seizures
and losses) include:
For more information:
http://www.goldsec.com/Security_Research.htm
• The
most popular of 66 brands to counterfeit (based on incidents):
• Gucci,
Chanel, Coach, Louis Vuitton, Marlboro, Nike, Burberry, Lacoste,
Microsoft, North Face, Oakley, Pradda and Sony.
• AMD, American Express, Armani, Baume & Mercier, Burlison-Davis,
Callaway, Calvin Klein, Canon, Cartier, Christian Dior, Chrysler,
Cimarron Creek, Epson, Ford, Garfield, Guess, HP, Jacksonville Jaguars,
Kate Spade, Larsen and Tourbo, Mitchell &
Ness, Mount blanc, NBA, NFL, Panasonic, Piaget, Polo Ralph Lauren,
Ray Ban, Roca Wear, Rolex, Sean John, Timberland, Titleist, Tommy
Hilfiger, and Underwriters Laboratories were also popular.
• 18%
of counterfeiters use false identification to avoid detection or
perpetrate their crimes.
• 21% of financial instruments counterfeited, such as checks
and credit cards, also involve counterfeit identification.
• Counterfeiters which focus on producing identification profit
the most from reproducing drivers licenses (29%), other government
ID (25%), passports (16%), social security cards (13%), birth certificates
(9%), death certificates, green cards, and visas (8%).
• The most common counterfeit methods are:
• Entertainment
& Software, using CD and DVD burners and stamping equipment.
• Financial Instruments, using computers, printers, scanners,
and encoder/decoders.
• Identification, using computers, laminating machines, scanners,
and digital cameras.
Other interesting
facts:
• China
is cited as the most frequently used country (44% of the time) to
manufacture counterfeit items and ship to other countries.
• 35 Countries reported counterfeit activity in December (Australia,
Bahrain, Bangladesh, Botswana, Brunei, Canada, China, Cyprus, Ghana,
India, Indonesia, Ireland, Israel, Japan, Liberia, Macedonia, Malaysia,
Mali, Malta, Nairobi, New Zealand, Nigeria, Pakistan, Philippines,
Russia, Saudi Arabia, South Africa, Sri Lanka, Taiwan, Tanzania,
UAE, Uganda, UK, USA and Vietnam).
• 27 Entities suspected of involvement in counterfeit activity
from 18 incidents were publicized. For more information:
http://www.goldsec.com/Alleged_Counterfeit_Suspects_Entities.htm
• The current months counterfeit activity: http://www.goldsec.com/
In summarizing
the months activity, Glen Gieschen, Managing Director of Gieschen
Consultancy stated "In December, more than 32% of counterfeit
incidents involved intellectual property theft (brands, trademarks,
copyrights, patents) of which 10,029,829 items were seized. The
amount of fake products that are confiscated each
month, by customs and law enforcement agents, has increased more
than 200% from November. This level of activity indicates an increased
effort to remove these items, some dangerous to human health, from
the marketplace. However, the amount of seizures also indicates
that counterfeiters find this market highly profitable and
intend on exploiting intellectual property to fund their criminal
and terrorist organizations.
Another notable
counterfeit scam that was uncovered in Malaysia and Canada, related
to counterfeit financial instruments used as breeder documents for
committing fraud. In particular, criminals are counterfeiting negotiable
instruments, sometimes in fictitious denominations, likely for the
purpose of using as an asset or collateral for obtaining loans or
other assets.
December also
provided insight into the lucrative trade and manufacturing of counterfeit
identification which increased more than 60% from the previous month.
Criminal organizations such as Shadowcrew.com are providing evidence
of a massive need for counterfeit identification to protect the
identities of criminals and
terrorists and to perpetrate financial crimes such as credit and
debit card fraud, along with numerous other schemes such as check
fraud. This practice is becoming more popular as stiffer penalties
are avoided when an individual is linked to a single crime vs. multiple
crimes in various jurisdictions and countries. This is certainly
one of the reasons why national identity cards and biometric passports
are
being proposed as one of many solutions to this problem. It is likely
that entities involved in intellectual property theft will also
catch on to this practice as penalties increase."
The full report
for November can be purchased from Gieschen Consultancy for $110
USD or $25 for DOPIP subscribers.
About DOPIP
SCI Reports
DOPIP is a powerful source of information regarding illegal activities
such as counterfeiting, forgery, product tampering and diversion.
It provides breaking news reports and analysis relating to document,
product and intellectual product security. Security technology providers,
enforcement agencies, trade organizations, and brand owners will
find this information indispensable for detection, deterrence and
prevention. DOPIP SCI Reports is available as an annual subscription
for $295 USD.
For more information visit http://www.goldsec.com/Security_Updates.htm.
About Gieschen Consultancy
Gieschen Consultancy, provides counterfeit intelligence analysis
and security research relating to documents, products and intellectual
property. Gieschen Consultancy educates clients regarding counterfeiting
issues, and assists in developing anti-counterfeiting, brand protection
and enforcement solutions. Providing the knowledge of the criminal
Modus Operandi (methods of operation), legal and political issues,
security technology, industry reports and statistical information,
effective strategies can then be developed, implemented and monitored.
For more information visit http://www.gieschen.com/.
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