Counterfeit Goods

Information and statistics about counterfeiting and the sale of counterfeit goods. Estimated losses from counterfeits, markets where fake goods are sold, and other piracy statistics are collected from criminal justice programs and public information sources.

The Reserve Bank of India reported that up to 69.38 billion counterfeit banknotes were estimated to have been in circulation during 2011-2012.

27.84 billion of the fake currency were 100 Indian Rupees and higher.

Financial regulators in India detected 521,000 counterfeit notes during the time period.

It is estimated that up to $2.2 Trillion worth of rupees could be fake in India’s financial system.

(Counterfeit money statistics.)

Source:  “RBI to compensate banks 25 per cent of losses for reporting fake notes,” Economic Times, June 30, 2013.

European Union police agency Europol reported that 28.6 percent of all counterfeit goods seized in 2011 consisted of counterfeit foods and counterfeit drugs. The portion of fake foods and medicines seized in 2011 was up from 14.5 percent in 2010.

Source:  Financial Times, “Crime Gangs Look to Clean Up as Europe’s Black Market Balloons,” CNBC, June 24, 2013.

An estimated $1.5 Billion worth of counterfeit drugs was reported to have been sold in Mexico in 2008. This latest figure is higher than the previously reported value of $650 Million in 2006.

Up to 30 percent of all medicines sold in Latin America are estimated to be counterfeits.

(Additional counterfeit goods statistics.)

Source:  Miriam Wells, “Criminals Flooding Paraguay With Counterfeit Drugs,” Insight Crime, June 24, 2013.

Illegal honey factories in Bosnia and Herzegovina produce up to 1,000 tonnes of fake honey each year. The counterfeiters sell the counterfeit honey to producers for $6.50 (€5) per kilogram, according to the president of the Beekeepers Association.

Genuine honey costs up between $9.82 to $13 (€7.5 to €10) per kilo.

Worldwide, counterfeit foods creates up to $40 Billion in market losses.

Source:  Mladen Dragojlovic, “Counterfeit foods, other products threaten BiH market,” SE Times, June 21, 2013.

Security officials in the Philippines seized nearly $123 Million (5.3 Billion Philippine Pesos) worth of counterfeit goods across the country in 2012.

The value of the fake goods was lower than the $189 Million (8.3 Billion Pesos) in 2011.

(More crime statistics from the Philippines here.)

Source:  Ronron Calunsod, “Counterfeiting, piracy remain rampant in Philippines,” ABS CBN News, June 14, 2013.

A New York City Councilwoman stated in a public hearing that the city losses up to $1 Billion in tax revenue each year to sales of counterfeit goods.

Councilwoman Margret Chin also stated that the sales of fakes in NYC has been linked to child labor and contributes revenue to organized crime groups.

(See revenue breakdown of organized crime syndicates.)

Source:  Verena Dobnik and Bethan McKernan, “NYC debates crackdown on counterfeit luxury goods,” AP, June 13, 2013.

Customs Officials in France seized around 200,000 counterfeit items being shipped into the country in 1994.

In 2011, the number of counterfeit products seized by Customs increased to 8.3 million.

According to officials, 70 percent of the fakes originate from Asia. One-third of the orders for the fake goods were placed on the Internet.

France losses up to €6 Billion to counterfeit goods each year. Based on the exchange rate as of June 2013, the losses in US dollars is $7.9 Billion.

(See ranking of counterfeit goods by losses.)

Source:  “France destroys one million fake goods,” Channel News Asia, June 12, 2013.

A Russian company created a counterfeit degree-granting organization that was granting fake degrees and diplomas to individuals who could afford them. According to officials in Vietnam, the company was charging $6,000 to obtain a fake degree.

Officials in Vietnam found several job candidates who held the fake degree from Russia.

Source:  Tin Tuc, “Employers warned about foreign counterfeit degrees,” Viet Nam Net, June 8, 2013.

According to the Kyiv Motorist Club, one out of every three liters of fuel sold in Ukraine is substandard or counterfeit.

The motor club conducted tests at major gas stations and found that 30 percent of the gas did not meet Ukraine or Euro standards.

According to energy experts, the number of filling stations that are checked by Ukrainian officials between 2008 and 2013 fell by a rate of 2.8 times.

Source:  “Every third liter of petrol at Ukrainian filling stations is counterfeit, says study,” Interfax-Ukraine, June 5, 2013.

The smuggling and sales of counterfeit goods in 7 major industries in India leads to a tax loss of $4.5 Billion (261 Billion Indian Rupees) to the government, according to a study by Ficci Cascade (Committee Against Smuggling and Counterfeiting Activities Destroying the Economy).

The seven industries that were covered in the study included counterfeit auto parts, counterfeit tobacco and alcohol, and fake electronics.

Source:  “Smuggling, tax evasion cost `26k cr,” Statesman, June 5, 2013.