馃攳
How $1.3 Billion Of Counterfeit Goods Are Seized At JFK Airport | Big Business - YouTube
Channel: Business Insider
[2]
this guitar might look like a real
[4]
gibson
[5]
but it's not this is coming from china
[7]
wait it's and it's gibson s-o-n not
[10]
s-u-n
[11]
these are fake too coach bag with a
[13]
michael kors zipper ooh we have nike
[15]
sneakers here they're a part of a huge
[18]
counterfeit industry worth over a
[20]
trillion dollars and since these fakes
[22]
come through the mail customs and border
[24]
protection officers are tasked with
[26]
seizing them in 2020 alone cbp seized
[29]
over 26 000 counterfeit good shipments
[32]
the knockoffs are getting better and
[33]
better and more profitable for these
[36]
counterfeiters not only are these fake
[38]
products dangerous for consumers they've
[40]
had cadmium arsenic lead and cyanide
[43]
inside makeup and it's disfigured people
[45]
perfume has had horse urine in it
[47]
profits of counterfeits are known to
[48]
fund criminal activity including attacks
[51]
and bombings people think it's a
[53]
victimless crime oh what's the harm i'm
[54]
just buying this sparkle book what could
[56]
it do it does a lot because the problem
[58]
is where the money is going and as
[60]
everything is now sold online buying
[62]
counterfeit goods is getting easier but
[64]
stopping them is much harder it's like
[67]
whack-a-mole they come up you go after
[68]
them they come down they go up again and
[70]
here we have counterfeit watch that's
[73]
customs officer steve nethersol he's
[75]
america's first line of defense against
[77]
counterfeits i've had many million
[79]
dollar watch seizures we visited him at
[82]
jfk to learn how he's spotting and
[84]
stopping fakes all while the counterfeit
[86]
market is surging
[90]
counterfeit goods are anything that
[92]
infringes on a company's intellectual
[94]
property rights or ipr think fake air
[97]
jordans rolex's or louis vuitton purses
[100]
and because these products are
[102]
trademarked counterfeiting them is
[104]
illegal you can just be guaranteed that
[105]
your product is going to get counterfeit
[107]
it's just a matter of time half of the
[108]
counterfeit goods cbp seized in 2019
[111]
came to the mail from china followed by
[114]
hong kong and singapore
[118]
before a package ever lands in the u.s
[121]
cbp gathers intelligence on the sender
[123]
container and aircraft using this intel
[126]
and x-ray machines cbp narrows down a
[129]
million packages into the ones that will
[131]
get pulled for further inspection those
[133]
suspicious packages will go straight to
[135]
steve
[138]
he'll start by looking at the box well
[140]
i'm looking because i don't have my
[142]
glasses on so i'm cheating the first
[144]
when it comes in is the country of
[146]
origin louis vuitton they're coming from
[148]
france the watches coming from
[149]
switzerland when it's coming from china
[151]
bing that's your number one red flag
[153]
then you look at the dilapidated boxes
[155]
then he'll open up the package and this
[157]
is from a familiar sender that sends
[160]
counterfeit items possibly footwear
[163]
ooh we have nike sneakers here this is
[166]
obviously to save space but this is not
[169]
traditional of the manufacturer to crush
[172]
all these items we try and take care of
[175]
when we open it up so that if it is
[177]
something that's legitimate we'll tape
[179]
it up and put it back the way it
[180]
originally was but that's rare more than
[183]
likely what he finds is fake the most
[186]
common counterfeited handbag is louis
[188]
vuitton the most counterfeited sneaker
[190]
is nike air jordans here we have a rolex
[193]
watch but how does he know their
[195]
counterfeits well brands train steve on
[198]
the telltale signs to spot a fake
[201]
you'll sometimes send a kit and the kit
[203]
will include a genuine product it'll
[206]
include a kind of a hit list as to what
[207]
to look for most of the hit list is kept
[210]
top secret to protect the brand against
[212]
counterfeiters but steve could share a
[214]
few things rolex would never put their
[216]
watches in little ziploc bags they don't
[218]
put these inside it the silica gel rolex
[221]
does not send to individuals in the
[223]
united states they only sent to their
[225]
retail stores
[228]
i have another package here this one's
[230]
coming from thailand we have an
[232]
assortment of items here we have chanel
[234]
eyewear we have gucci eyewear watches
[237]
jewelry louis vuitton pouch high-end
[240]
manufacturers like this never co-mingle
[242]
their products in other words a gucci
[244]
inside of a fendi or a louis vuitton
[246]
these people will stuff watches a wallet
[248]
inside a handbag they don't put any of
[250]
this in it the filler inside it and
[252]
their items wouldn't come in bubble wrap
[254]
like this
[255]
some of the counterfeits are obvious
[257]
here we have a burberry coat and it says
[259]
bird belly mistakenly on the button but
[262]
some aren't as easy to spot the quality
[265]
is getting better sometimes these
[267]
factories especially in china it's the
[270]
same factory that's making the good for
[273]
the brand owner is also making the
[275]
counterfeits and that's a real problem
[277]
for the luxury brand owners sometimes
[280]
the brands themselves can't even tell
[281]
the difference some of the counterfeits
[284]
are that good
[288]
i've never seen one like this before so
[291]
of course i'm gonna be delicate with it
[294]
the packaging and the brand doesn't look
[296]
like the normal counterfeit that we
[297]
normally see it's coming from israel
[299]
what is the country in manufacture for
[301]
paul reed smith seoul south korea israel
[304]
is not a manufacturer there are a lot of
[306]
red flags it's like half and half it's
[309]
got model code serial number upc number
[312]
but for the country that it's coming
[314]
from is the thing that's throwing me off
[317]
so i'm gonna put it over here on hold
[319]
and it'll be determined later on but in
[321]
order for steve to seize anything there
[323]
has to be a trademark on that product
[326]
see what we got in here
[328]
shirts
[329]
yes it's all
[331]
suzuki shirts
[332]
suzuki has
[334]
motorcycle and car trademark but not on
[337]
apparel so this will end up being
[339]
released but whether it's a copycat of a
[341]
product that's trademarked or not
[343]
counterfeits can be dangerous that fake
[345]
makeup well it can cause rashes
[348]
swellings and burns they've had cadmium
[350]
arsenic lead and cyanide inside makeup
[353]
and it's disfigured people cadmium is in
[356]
rechargeable batteries and control rods
[358]
in nuclear reactors perfume they've
[360]
laboratory tests has shown there's been
[362]
horse urine in it steve says fake safety
[365]
equipment is even more alarming when it
[367]
comes to automotive parts that's a very
[369]
big danger spark plugs which can cause
[373]
the engine to go on fire oil filters
[375]
that cause instant damage to the engine
[377]
airbags are a big thing that's something
[379]
that you may not necessarily realize is
[382]
something to even consider until you
[384]
need that airbag and it doesn't go off
[386]
in the protective way that it should
[387]
counterfeit manufacturers have no regard
[390]
to health or safety or who they hurt
[392]
along the way all they're concerned
[394]
about is the bottom line
[397]
many studies have shown that
[398]
counterfeiting is one way criminal
[400]
organizations fund themselves the
[402]
accused group in the 2004 madrid train
[404]
bombing sold fake cds to partially
[406]
finance their attacks
[408]
for the 1993 world trade center bombing
[411]
co-conspirators in that sold counterfeit
[413]
t-shirts on broadway to fund that the
[416]
two brothers behind the 2015 attack on
[418]
the charlie hebdo publication that
[420]
killed 12 people and injured 11 they
[423]
funded their weapons partly through
[425]
counterfeit nike sneakers and sometimes
[427]
it's hard to make that connection
[428]
between the person you might have bought
[430]
on the street corner and organized crime
[432]
activity but this activity that seems to
[435]
be going under the radar can be
[437]
lucrative for criminals and it's because
[439]
it's high profit and low risk
[442]
so when steve finds a counterfeit good
[444]
he seizes it then he figures out the
[446]
items msrp using the brand's website and
[450]
cbp's internal database this one here
[452]
would be about eleven thousand dollars
[454]
that's the msrp what the manufacturer
[456]
would be losing had this been genuine
[458]
these are generally on the internet for
[460]
about two hundred dollars
[462]
in 2020 cbps seized over 26 000 packages
[466]
for intellectual property rights
[467]
violations that's a total value of over
[469]
a billion dollars but it's not just the
[472]
manufacturer's profits that take a hit
[474]
their reputations do when a buyer
[476]
doesn't know they've bought a knockoff
[478]
and it falls apart it's the real company
[480]
that customer blames and over time
[483]
consumers trust in the brand is eroded
[485]
steve does all the paperwork for every
[487]
seized package then he stores the goods
[491]
here we have a post on full of seizures
[493]
so it's going to go into the storage
[494]
room in the end all these products will
[497]
be destroyed
[500]
they're incinerated at a top secret
[502]
location
[503]
so what happens to the counterfeiters
[506]
for one homeland security investigations
[508]
can decide to open up a case but steve
[510]
says that doesn't happen often the first
[513]
problem the hsi agents there's only so
[515]
many of them they're gonna deal with the
[517]
most important thing which is narcotics
[519]
all the fentanyl and the cocaine that
[521]
comes out of killing people that is a
[522]
top priority and it should be and the
[525]
second problem the nature of
[527]
counterfeiting is that these bad actors
[529]
operate without respect for borders it's
[531]
oftentimes very difficult to actually
[533]
get an individual because they're not
[536]
located in the u.s
[538]
american authorities don't have
[539]
jurisdiction in china where a lot of
[541]
counterfeits are made so resting
[543]
counterfeiters within the u.s is hard in
[546]
2020 homeland security investigations
[548]
arrested 203 people for counterfeiting
[551]
of those just 93 were convicted diane
[554]
says a more successful tactic is going
[556]
after counterfeiters online many sell
[558]
their copycat products on platforms like
[560]
amazon alibaba and ebay to fight the
[563]
fakes online retailers have launched
[565]
antique counterfeiting measures a lot of
[566]
these marketplaces are really working
[568]
with brand owners we do not want to be a
[571]
place where a customer purchases an item
[573]
that ultimately could impact their
[575]
health and safety amazon's program is
[577]
called project zero when companies
[579]
register for amazon they give
[581]
information on their brands trademarks
[583]
and listings using this data amazon's
[586]
algorithm scans five billion products a
[588]
day for signs of counterfeiting it looks
[590]
for things like blurry product photos
[592]
copycat product descriptions payment
[595]
information we look at price point we
[597]
look at reviews and if a listing turns
[599]
out to be a counterfeit amazon will
[601]
suspend the account in 2019 amazon
[604]
blocked 6 billion suspected bad listings
[606]
on its site
[607]
we might suspend funds we might
[609]
quarantine inventory then amazon's new
[612]
counterfeit crimes unit takes over
[614]
formed in 2020 the units made up of
[616]
former fbi homeland security agents and
[619]
federal prosecutors like kibaru whenever
[622]
a counterfeit is identified kibaro's
[624]
team will send a packet of information
[626]
to law enforcement this information can
[628]
consist of ip addresses banking
[630]
information email addresses that help us
[633]
identify the person behind the computer
[635]
and to skirt the jurisdiction problem
[637]
the unit sends data to agencies all over
[639]
the world to europol canadian law
[641]
enforcement we partner and work with law
[643]
enforcement on the ground in china local
[645]
law enforcement does react when a brand
[648]
owner comes to them and wants to do a
[650]
raid and i've been involved in quite a
[652]
few of them where they're really
[654]
successful and we can then decide
[656]
whether we want to pursue a civil suit
[658]
or if we want to pursue a criminal
[660]
enforcement action against them but even
[662]
if counterfeiters are caught sentences
[664]
tend to be low
[665]
for counterfeiting offenders could face
[667]
10 years in prison compare that to say
[670]
drug trafficking where punishment can
[671]
range from 20 years to life in prison
[674]
all the way up to a death sentence
[676]
and counterfeiters are getting creative
[678]
and making their products seem
[679]
legitimate from creating fake amazon
[681]
listings to flooding the u.s trademark
[683]
office with phony applications it is
[685]
frustrating that it doesn't stop that
[688]
every day there's new infringements that
[690]
we uncover for clients and it's all led
[692]
to a surging industry for counterfeits
[694]
today it makes up 3.3 percent of global
[697]
trade when counterfeits are being sold
[699]
oftentimes taxes aren't being paid for
[701]
those goods and they in turn can impact
[703]
economies as well by 2022 the
[706]
counterfeits industry is expected to
[707]
suck 4.2 trillion dollars from the
[710]
global economy and they could endanger
[712]
over 5 million legitimate jobs because
[715]
we're dealing with a moving target it's
[717]
a challenging crime problem to address
[719]
it grows every day and it's because of
[721]
consumer demand people need to be
[723]
educated more about the dangers and the
[726]
old saying if it seems too good to be
[727]
true it probably is
[732]
[Music]
Most Recent Videos:
You can go back to the homepage right here: Homepage