How to Counterfeit $580,520,557 in one month!

Released on = December 13, 2004, 12:42 pm

Press Release Author = Gieschen Consultancy

Industry = International Trade

Press Release Summary = During the month of November more than 1,317 individuals contributed to counterfeit losses totaling $580,520,557 USD. Counterfeit enforcement agents also seized 3,997,394 items worth $617,044,643 USD. As reported by Gieschen Consultancy, the top countries that aggressively pursued counterfeiters, were the Philippines (47%, $568,137,600), Greece (30%, $361,040,000), Russia (17%,
$200,050,000), Lithuania (2%, $23,950,000), USA (1%, $8,855,950), UK (1%, $8,395,800). China ranked 16th.

Press Release Body = Tuesday December 14, 2004 -- Calgary, Canada -- Based on the past month of worldwide counterfeit enforcement activity (investigations, raids, seizures, arrests, charges, convictions, sentences, public announcements), as
reported through the DOPIP Security Counterfeit Intelligence Report, more than 197 incidents were analyzed.

The profile of the average counterfeit operation:

• Involves 7 people, averaging 32 years old. The youngest person involved was 13, the oldest was 59.
• Sells more than 2,500 counterfeit items valued at $2,946,805 USD items before being caught.
• When caught, more than 20,000 counterfeit items are seized valued at $3,100,000.
• The most profitable items to counterfeit (based on seizures and losses) include:
o Financial Instruments, $598,977,750 (currency, checks, money orders)
o Digital Entertainment, $377,579,600 (CDs, DVDs, software, etc.)
o Drugs, $200,100,300 (medications)
o Identification, $9,258,900 (passports, drivers licenses, birth certificates, etc.)
o Clothing & Accessories, $4,966,100
o Other Documents, $2,860,350
o Toys & Games, $1,800,000
o Other Goods, $1,776,000
o Electronic Equipment, Industrial Goods, Food & Alcohol, Cigarettes, and Computer Equipment, $246,200
• The most popular merchandise to counterfeit (based on incidents) includes:
o Louis Vuitton
o Gucci
o Nike
o Adidas, Armani, Bata, Boston Red Sox, Burberry, Calvin Klein, Canon, Chanel, Coach, Coca-Cola, Energizer, FCUK, Fendi, HP, Hugo Boss , Lego, Microsoft, Movado, Oakland Raiders, Pittsburgh Steelers, Prada, Rangers, Umbro, and Viagra were also popular.
• 11% of counterfeiters use false identification to avoid detection.
• Fake identification is most likely to be involved in financial crimes, such as check and credit card fraud.
• Counterfeiters which focus on producing identification profit the most from reproducing drivers licenses (27%), visas (24%), passport (21%), social security cards (12%), other identification cards (9%) and birth certificates (6%).
• The most common methods of counterfeiting are:
o Digital Entertainment, using CD and DVD burners
o Drugs, repackaging in used medication containers
o Electronic Equipment, contracting Chinese companies to counterfeit the items.
o Financial Instruments, using computers, printers, and scanners
o Identification, using computers, printers and laminating machines
o Other Documents, using computers, printers and copiers

Other interesting November facts:

• The best locations to manufacture counterfeit items are China (44%), Pakistan (22%), followed by India and Singapore.
• 33 Countries reported counterfeit activity in November (Australia, Bangladesh, Bulgaria, Canada, China, Finland, Greece, India, Indonesia, Israel, Italy, Jamaica, Japan, Lithuania, Malaysia, Malta, New Zealand, Pakistan, Philippines, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Sri Lanka, Taiwan, Thailand, UAE, Uganda, UK, USA, Vietnam, and Zambia).

In summarizing the months activity, Glen Gieschen, Managing Director of Gieschen Consultancy stated "November was a tremendous month for counterfeiting culminating in more than $1 Billion (USD) of activity. A number of extremely large and
sophisticated counterfeit operations were identified and closed which signals an end to these investigations and the start to new ones. Much of the activity was made public and widely covered in the United States and United Kingdom in November to raise the level of awareness of counterfeiting to the general public before the Christmas season. It is no surprise that December is a month where consumers especially fall victim to counterfeit schemes, from counterfeit money orders, to currency and merchandise. Thus educating the public in advance of a busy shopping season is an effective method to show them how to identify counterfeit items and understand the detrimental effects of this activity. Also this information provides a level of de terrence for those thinking about setting up or continuing their counterfeit manufacturing or distribution systems."

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
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For more information visit http://www.goldsec.com/Security_Updates.htm.


About Gieschen Consultancy

Gieschen Consultancy, is a trusted provider of in-depth information, analysis and reporting for the document, product and intellectual property security industry. Gieschen Consultancy applies more than 10 years security experience to assist clients in developing anti-counterfeiting, brand protection and enforcement solutions. Through the knowledge of security technology, criminal Modus Operandi (methods of operation), legal and political issues, statistical information and competitive intelligence, effective strategies are developed, implemented and monitored.

For more information visit http://www.gieschen.com/.

Web Site = http://www.gieschen.com/

Contact Details = Glen Gieschen
Managing Director
Gieschen Consultancy
Glen@Gieschen.com
Phone 403-256-5680
Calgary, Alberta Canada