Fake goods on the rise: how to avoid being caught out

Don't waste your money on dodgy items this Christmas.

It may be present-buying time for many of us, but there’s a real risk that you may be spending your money on dodgy products.

That’s according to KPMG, whose ‘Fraud Barometer’ has revealed that the number of large value cases involving fake goods which reach court is continuing to rise.

The firm found that a total of 39 cases, covering counterfeit and pirated goods worth more than £116 million, have been prosecuted in the UK in the last two years.

These low-quality and sometimes dangerous items aren't just a problem for regulators: they're ending up in our homes.

Returning unwanted or faulty goods: your rights

The dangers of buying fake goods

Last month the City of London Police’s Intellectual Property Crime Unit (PIPCU) launched a campaign alongside the likes of the London Fire Brigade and Electrical Safety First to warn shoppers about the dangers of being duped by counterfeit electrical items.

A report, produced by Electrical Safety First, found that around a third of the people surveyed had been tricked into believing a dodgy electrical item, having thought it was legitimate.

PIPCU was clear that there are severe risks to spending your cash on iffy items, citing a fire in May this year that led to an evacuation from a block of flats in London which it believes was caused by an unbranded mobile phone charger.

KPMG also highlighted a case where two people were jailed after selling cheap teeth whitening kits, which had been advertised as being used by leading dentists across Europe.

However, in reality, they contained up to 110 times the allowable level of hydrogen peroxide and left users with bleeding gums from chemical burns.

Putting your finances at risk

It’s not just a question of physical safety either. When you’re spending your money on a counterfeit item, you are handing your details over to criminals.

If they are willing to break the law in order to flog dodgy tablets and hair straighteners, why wouldn’t they also want to cash in on those personal details in order to commit fraud?

Identity theft is already at record levels according to fraud prevention service Cifas, with 174,523 cases reported last year.

And there are well-founded concerns that this figure will continue to rise, with the tools needed to carry out phishing scams now so cheap to acquire - research from Top10VPN earlier this year found that for less than £3 you can pick up ready-made phishing pages, files to help you hack passwords and software that can be used to compromise WiFi networks.

With that in mind, it’s never been more important to protect your personal details at all times, and that includes resisting the temptation to purchase goods that are potentially illegitimate.

James Maycock, forensic partner at KPMG, emphasised that while shoppers might be tempted to turn a blind eye to buying from retailers that they are suspicious may be fraudsters, considering it a victimless crime, it’s important to remember that this “shadow economy activity” often directly promotes money laundering and tax evasion.

He added: “It can also help to fund other more serious organised criminal enterprises, including human trafficking, drug smuggling and terrorism.”

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Tips to avoid buying counterfeit items

PIPCU reckons that trusting your instincts when dealing with suspicious items is a good start.

This was also something that KPMG pointed out in its study, noting that several cases that have appeared in court in recent years involved goods that should have “raised the eyebrows of the more conscientious customers”.

If you have a sneaking suspicion that the offer is too good to be true, then it probably is. Why would you be able to purchase that top line tech from a little-known website for half the price that you’d pay with a well-known store?

Indeed, sticking to reputable stores is another important step if you want to avoid running the risk of forking out for a fake.

If you are going to shop online with an unfamiliar website, then it pays to look out for any spelling and grammar mistakes throughout the site or even in the URL.

Scammers flogging dodgy goods may look to deceive you by slightly changing the spelling of a well-known retailer in the web address.

You should also check that a business address is supplied, and not just a PO Box or an email. Remember just because the apparent retailer’s web address ends ‘.co.uk’, that doesn’t mean they are actually based in the UK.

If you want to learn more about avoiding fakes, read our guide to spotting counterfeits, which also explains your rights when things go wrong.