Counterfeiting worldwide nets $56,173,026 in August!

Released on = September 3, 2004, 1:06 pm

Press Release Author = Gieschen Consultancy

Press Release Summary = During the month of August, counterfeiting worldwide nets
$56,173,026 with China accounting for more than 61% of all seizures and losses, followed by the United Kingdom (15%) and India (9%) as surveyed by Gieschen Consultancy.

Press Release Body = Friday September 3, 2004 -- Calgary, Canada -- Based on the
past month of counterfeit enforcement activity, as reported through the DOPIP Security Competitive Intelligence Report, more than 169 incidents were analyzed. It was found that for each crime the estimated losses were $332,385, involved 9 individuals and the seizure of 48,392 counterfeit items. Overall the results indicate that 1,472 individuals from 36 countries, accounted for the seizure of
8,178,480 counterfeit items worth more than $56,173,026.

The variety of counterfeit items seized included more than 135 categories, with currency as the most popular item to counterfeit (20.4%), followed by digital media such as CDs, DVDs, and VCDs (13.6%), drivers licenses (5.5%), passports (5.1%), credit cards (4.4%), and cheques (3.6%).

83% of the counterfeit enforcement activity for this period focused on raids, seizures and arrests. The remaining activity was directed towards investigations (8%), charges (3%), convictions (2%), and sentencing (4%).

In summarizing the months activity, Glen Gieschen, Managing Director of Gieschen
Consultancy stated "overall, most of the activity during the summer has been
anticipated. Busy summer retailers such as fast food outlets and malls are favourite targets of criminals seeking to launder their counterfeit currency due to the pressures on staff to reduce lines at checkouts. The summer also provides an opportunity to sell counterfeit merchandise at seasonal markets and outdoor
locations such as concerts and sporting events where it is easy for counterfeiters to set up booths or mobile stores. The activity which appears to be strengthening is counterfeit identification, such as passports and drivers licenses, which are being widely used by criminals and terrorists for illegal entry into countries, proof of citizenship to obtain other official documents and financial benefits (such
as welfare, cashing counterfeit cheques or illegally obtaining credit), along with a
variety of identity theft schemes.

A positive development in the prevention of counterfeit activity were raids on several high volume print manufacturing locations in India, South Africa, Ireland, Bulgaria, Latvia, and Columbia which produced currencies, packaging and brand name goods. The loss of sophisticated and expensive equipment will temporarily dent the local supply and provide a deterrent against setting up such large and fixed operations in the future."

Further results are as follows:

· 169 Incidents of Counterfeiting activity (investigations, raids, seizures, arrests, charges, sentences), involving 1,472 individuals, including seizures of 8,178,480 items at an estimated loss value of $56,173,026 related 135 categories.
The most popular items counterfeited include birth certificates, CDs, checks, cheques, cigarettes, clothing, computer games, credit cards, currency (Australia, British, China, Euro, India, Malaysia, Malta, Papua New Guinea, Philippines, South Africa, and US), drivers licenses, DVDs, fertilizer, films, identification, identity cards, identity documents, immigration stamps, jewelry, medicine, music, passports
(Canada, Taiwan, UK, US), prescription drugs, purses, shoes, social security cards, software, VCDs, vehicle inspection stickers, visas and watches.

Activity by top 7 countries:

1. China, $4,713,571 per incident. 7 incidents and seizure/losses of $32,995,000.
2. Russia, $1,000,000 per incident. 1 incident and seizure/losses of more than $1,000,000.
3. Philippines, $726,667 per incident. 3 incidents and seizure/losses of $2,180,000.
4. United Kingdom, $542,437 per incident. 15 incidents and seizure/losses of $8,136,550.
5. India, $291,179 per incident. 17 incidents and seizure/losses of $4,950,040.
6. Malaysia, $263,522 per incident. 10 incidents and seizure/losses of $2,635,223.
7. United States, $32,179 per incident. 66 incidents and seizure/losses of $2,124,478.

· Counterfeit methods reported include the use of sophisticated printing and hologram machinery imported from China, DVD burners, illegal Internet services, product molds, acid washing of currency, graphic design computers colour scanners and printers, CD duplicating and production equipment, check writing programs, laminating machinery, printer/scanner/copiers, silver tape, electric pressing machinery, skimming and card making equipment, file sharing programs, high quality
copiers, laptop computers, digital cameras, ultraviolet lights, blank barcode material, printing inks, replicating machines, screen printing equipment, multi-drive CD burning stacks, schemer machines, and use the Internet to find out how to counterfeit ID.

· 70 Brands/owners identified, the most popular being Adidas, Coach, Ferrari, Louis
Vuitton, Microsoft, Nike, Philips, and Surya Roshini.
· Counterfeit activity from 36 Countries (Australia, Bangladesh, China, Ethiopia,
Finland, Guyana, India, Indonesia, Israel, Italy, Jamaica, Kenya, Malaysia, Malta, Mexico, New Zealand, Nigeria, Pakistan, Papua New Guinea, Philippines, Poland, Russia, Singapore, South Africa, Spain, Sri Lanka, Taiwan, Thailand, UAE, UK, USA, Venezuela, Vietnam and Zimbabwe)

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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.

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

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