1 00:00:00,855 --> 00:00:04,321 Two years ago, I set off from central London on the Tube 2 00:00:04,345 --> 00:00:06,643 and ended up somewhere in the east of the city 3 00:00:06,667 --> 00:00:08,580 walking into a self-storage unit 4 00:00:08,604 --> 00:00:12,199 to meet a guy that had 2,000 luxury polo shirts for sale. 5 00:00:13,180 --> 00:00:15,105 And as I made my way down the corridor, 6 00:00:15,129 --> 00:00:18,122 a broken, blinking light made it just like the cliche scene 7 00:00:18,146 --> 00:00:19,343 from a gangster movie. 8 00:00:20,462 --> 00:00:22,644 Our man was early, and he was waiting for me 9 00:00:22,668 --> 00:00:25,525 in front of a unit secured with four padlocks down the side. 10 00:00:26,043 --> 00:00:27,580 On our opening exchange, 11 00:00:27,604 --> 00:00:29,343 it was like a verbal sparring match 12 00:00:29,367 --> 00:00:31,001 where he threw the first punches. 13 00:00:31,401 --> 00:00:33,915 Who was I? Did I have a business card? 14 00:00:33,939 --> 00:00:35,862 And where was I going to sell? 15 00:00:35,886 --> 00:00:38,566 And then, he just started opening up, 16 00:00:38,590 --> 00:00:39,740 and it was my turn. 17 00:00:40,433 --> 00:00:42,379 Where were the polo shirts coming from? 18 00:00:42,403 --> 00:00:43,754 What paperwork did he have? 19 00:00:44,501 --> 00:00:47,032 And when was his next shipment going to arrive? 20 00:00:47,056 --> 00:00:48,390 I was treading the fine line 21 00:00:48,414 --> 00:00:51,169 between asking enough questions to get what I needed 22 00:00:51,193 --> 00:00:53,740 and not enough for him to become suspicious, 23 00:00:53,764 --> 00:00:58,294 because what he didn't know is that I'm a counterfeit investigator, 24 00:00:58,318 --> 00:00:59,681 (Laughter) 25 00:00:59,705 --> 00:01:02,468 and after 20 minutes or so of checking over the product 26 00:01:02,492 --> 00:01:06,007 for the telltale signs of counterfeit production -- 27 00:01:06,031 --> 00:01:08,357 say, badly stitched labels or how the packaging 28 00:01:08,381 --> 00:01:11,206 had a huge brand logo stamped all over the front of it -- 29 00:01:11,230 --> 00:01:13,126 I was finally on my way out, 30 00:01:13,150 --> 00:01:16,221 but not before he insisted on walking down to the street with me 31 00:01:16,245 --> 00:01:17,451 and back to the station. 32 00:01:19,237 --> 00:01:21,905 And the feeling after these meetings is always the same: 33 00:01:21,929 --> 00:01:24,009 my heart is beating like a drum, 34 00:01:24,033 --> 00:01:26,928 because you never know if they've actually bought your story, 35 00:01:26,952 --> 00:01:30,080 or they're going to start following you to see who you really are. 36 00:01:30,104 --> 00:01:32,454 Relief only comes when you turn the first corner 37 00:01:32,478 --> 00:01:34,842 and glance behind, and they're not standing there. 38 00:01:36,171 --> 00:01:39,352 But what our counterfeit polo shirt seller certainly didn't realize 39 00:01:39,376 --> 00:01:43,137 is that everything I'd seen and heard would result in a dawn raid on his house, 40 00:01:43,161 --> 00:01:45,948 him being woken out of bed by eight men on his doorstep 41 00:01:45,972 --> 00:01:47,362 and all his product seized. 42 00:01:48,557 --> 00:01:52,040 But this would reveal that he was just a pawn 43 00:01:52,064 --> 00:01:55,522 at the end of a counterfeiting network spanning three continents, 44 00:01:55,546 --> 00:01:58,664 and he was just the first loose thread that I'd started to pull on 45 00:01:58,688 --> 00:02:00,625 in the hope that it would all unravel. 46 00:02:01,697 --> 00:02:03,434 Why go through all that trouble? 47 00:02:04,358 --> 00:02:06,799 Well, maybe counterfeiting is a victimless crime? 48 00:02:07,365 --> 00:02:09,475 These big companies, they make enough money, 49 00:02:09,499 --> 00:02:10,770 so if anything, 50 00:02:10,794 --> 00:02:13,530 counterfeiting is just a free form of advertising, right? 51 00:02:14,170 --> 00:02:16,546 And consumers believe just that -- 52 00:02:16,570 --> 00:02:19,467 that the buying and selling of fakes is not that big a deal. 53 00:02:20,110 --> 00:02:23,149 But I'm here to tell you that that is just not true. 54 00:02:24,848 --> 00:02:28,777 What the tourist on holiday doesn't see about those fake handbags 55 00:02:28,801 --> 00:02:31,237 is they may well have been stitched together 56 00:02:31,261 --> 00:02:34,750 by a child who was trafficked away from her family, 57 00:02:34,774 --> 00:02:37,246 and what the car repair shop owner doesn't realize 58 00:02:37,270 --> 00:02:39,403 about those fake brake pads 59 00:02:39,427 --> 00:02:42,769 is they may well be lining the pockets of an organized crime gang 60 00:02:42,793 --> 00:02:44,895 involved in drugs and prostitution. 61 00:02:45,950 --> 00:02:48,840 And while those two things are horrible to think about, 62 00:02:48,864 --> 00:02:51,172 it gets much worse, 63 00:02:51,196 --> 00:02:54,068 because counterfeiting is even funding terrorism. 64 00:02:55,043 --> 00:02:56,511 Let that sink in for a moment. 65 00:02:57,567 --> 00:03:00,396 Terrorists are selling fakes to fund attacks, 66 00:03:00,420 --> 00:03:04,109 attacks in our cities that try to make victims of all of us. 67 00:03:05,442 --> 00:03:07,681 You wouldn't buy a live scorpion, 68 00:03:07,705 --> 00:03:10,753 because there's a chance that it would sting you on the way home, 69 00:03:10,777 --> 00:03:12,760 but would you still buy a fake handbag 70 00:03:12,784 --> 00:03:16,283 if you knew the profits would enable someone to buy bullets 71 00:03:16,307 --> 00:03:19,672 that would kill you and other innocent people six months later? 72 00:03:20,594 --> 00:03:21,744 Maybe not. 73 00:03:22,552 --> 00:03:24,314 OK, time to come clean. 74 00:03:24,668 --> 00:03:25,819 In my youth -- 75 00:03:25,843 --> 00:03:28,696 yeah, I might look like I'm still clinging on to it a bit -- 76 00:03:28,720 --> 00:03:31,888 I bought fake watches while on holiday in the Canary Islands. 77 00:03:32,395 --> 00:03:33,767 But why do I tell you this? 78 00:03:34,229 --> 00:03:36,681 Well, we've all done it, 79 00:03:36,705 --> 00:03:38,380 or we know someone that's done it. 80 00:03:38,404 --> 00:03:42,047 And until this very moment, maybe you didn't think twice about it, 81 00:03:42,071 --> 00:03:43,447 and nor did I, 82 00:03:43,471 --> 00:03:46,098 until I answered a 20-word cryptic advert 83 00:03:46,122 --> 00:03:48,407 to become an intellectual property investigator. 84 00:03:50,086 --> 00:03:53,128 It said "Full training given and some international travel." 85 00:03:53,152 --> 00:03:56,901 Within a week, I was creating my first of many aliases, 86 00:03:56,925 --> 00:04:00,003 and in the 10 years since, I've investigated fake car parts, 87 00:04:00,027 --> 00:04:03,241 alloy wheels, fake pet grooming tools, 88 00:04:03,265 --> 00:04:04,956 fake bicycle parts, 89 00:04:04,980 --> 00:04:07,107 and, of course, the counterfeiter's favorite, 90 00:04:07,131 --> 00:04:10,241 fake luxury leather goods, clothing and shoes. 91 00:04:11,027 --> 00:04:13,901 And what I've learned in the 10 years of investigating fakes 92 00:04:13,925 --> 00:04:16,366 is that once you start to scratch the surface, 93 00:04:16,390 --> 00:04:18,552 you find that they are rotten to the core, 94 00:04:18,576 --> 00:04:23,314 as are the people and organizations that are making money from them, 95 00:04:23,338 --> 00:04:26,805 because they are profiting on a massive, massive scale. 96 00:04:27,499 --> 00:04:29,928 You can only make around a hundred to 200 percent 97 00:04:29,952 --> 00:04:31,466 selling drugs on the street. 98 00:04:31,807 --> 00:04:35,650 You can make 2,000 percent selling fakes online 99 00:04:35,674 --> 00:04:37,895 with little of the same risks or penalties. 100 00:04:38,856 --> 00:04:40,141 And this quick, easy money 101 00:04:40,165 --> 00:04:42,809 then goes on to fund the more serious types of crime, 102 00:04:42,833 --> 00:04:45,397 and it pays the way to making these organizations, 103 00:04:45,421 --> 00:04:47,832 these criminal organizations, look more legitimate. 104 00:04:48,863 --> 00:04:50,894 So let me bring you in on a live case. 105 00:04:51,620 --> 00:04:53,819 Earlier this year, a series of raids took place 106 00:04:53,843 --> 00:04:56,164 in one of my longest-running investigations. 107 00:04:56,470 --> 00:04:59,523 Five warehouses were raided in Turkey, 108 00:04:59,547 --> 00:05:03,360 and over two million finished counterfeit clothing products were seized, 109 00:05:03,384 --> 00:05:06,375 and it took 16 trucks to take that all away. 110 00:05:07,288 --> 00:05:08,718 But this gang had been clever. 111 00:05:08,742 --> 00:05:12,130 They had gone to the lengths of creating their own fashion brands, 112 00:05:12,154 --> 00:05:14,137 complete with registered trademarks, 113 00:05:14,161 --> 00:05:16,662 and even having photo shoots on yachts in Italy. 114 00:05:19,124 --> 00:05:22,782 And they would use these completely unheard-of and unsuspicious brand names 115 00:05:22,806 --> 00:05:25,448 as a way of shipping container loads of fakes 116 00:05:25,472 --> 00:05:27,948 to shell companies that they'd set up across Europe. 117 00:05:28,974 --> 00:05:30,846 And documents found during those raids 118 00:05:30,870 --> 00:05:34,244 found that they'd been falsifying shipping documents 119 00:05:34,268 --> 00:05:37,014 so the customs officials would literally have no idea 120 00:05:37,038 --> 00:05:39,228 who had sent the products in the first place. 121 00:05:39,944 --> 00:05:42,301 When police got access to just one bank account, 122 00:05:42,325 --> 00:05:44,139 they found nearly three million euros 123 00:05:44,163 --> 00:05:47,608 had been laundered out of Spain in less than two years, 124 00:05:47,632 --> 00:05:49,711 and just two days after those raids, 125 00:05:49,735 --> 00:05:53,200 that gang were trying to bribe a law firm to get their stock back. 126 00:05:54,782 --> 00:05:57,846 Even now, we have no idea where all that money went, 127 00:05:57,870 --> 00:05:59,036 to who it went to, 128 00:05:59,060 --> 00:06:02,353 but you can bet it's never going to benefit the likes of you or me. 129 00:06:03,970 --> 00:06:06,272 But these aren't just low-level street thugs. 130 00:06:06,739 --> 00:06:09,876 They're business professionals, and they fly first class. 131 00:06:09,900 --> 00:06:11,806 They trick legitimate businesses 132 00:06:11,830 --> 00:06:14,790 with convincing fake invoices and paperwork, 133 00:06:14,814 --> 00:06:16,440 so everything just seems real, 134 00:06:16,464 --> 00:06:19,060 and then they set up eBay and Amazon accounts 135 00:06:19,084 --> 00:06:22,027 just to compete with the people they've already sold fakes to. 136 00:06:23,813 --> 00:06:25,622 But this isn't just happening online. 137 00:06:26,117 --> 00:06:30,594 For a few years, I also used to attend automotive trade shows 138 00:06:30,618 --> 00:06:33,301 taking place in huge exhibition spaces, 139 00:06:33,325 --> 00:06:36,517 but away from the Ferraris and the Bentleys and the flashing lights, 140 00:06:36,541 --> 00:06:38,475 there'd be companies selling fakes: 141 00:06:38,499 --> 00:06:41,190 companies with a brochure on the counter 142 00:06:41,214 --> 00:06:44,516 and another one underneath, if you ask them the right questions. 143 00:06:44,540 --> 00:06:47,351 And they would sell me fake car parts, faulty fake car parts 144 00:06:47,375 --> 00:06:51,892 that have been estimated to cause over 36,000 fatalities, 145 00:06:51,916 --> 00:06:53,787 deaths on our roads each year. 146 00:06:55,182 --> 00:07:01,071 Counterfeiting is set to become a 2.3-trillion-dollar underground economy, 147 00:07:01,095 --> 00:07:04,150 and the damage that can be done with that kind of money, 148 00:07:04,174 --> 00:07:05,460 it's really frightening ... 149 00:07:06,587 --> 00:07:09,905 because fakes fund terror. 150 00:07:09,929 --> 00:07:12,350 Fake trainers on the streets of Paris, 151 00:07:12,374 --> 00:07:14,817 fake cigarettes in West Africa, 152 00:07:14,841 --> 00:07:17,056 and pirate music CDs in the USA 153 00:07:17,080 --> 00:07:20,334 have all gone on to fund trips to training camps, 154 00:07:20,358 --> 00:07:23,484 bought weapons and ammunition, or the ingredients for explosives. 155 00:07:24,421 --> 00:07:27,620 In June 2014, the French security services 156 00:07:27,644 --> 00:07:33,620 stopped monitoring the communications of Said and Cherif Kouachi, 157 00:07:33,644 --> 00:07:37,524 the two brothers who had been on a terror watch list for three years. 158 00:07:37,548 --> 00:07:40,772 But that summer, they were only picking up that Cherif was buying 159 00:07:40,796 --> 00:07:42,855 fake trainers from China, 160 00:07:42,879 --> 00:07:45,514 so it signaled a shift away from extremism 161 00:07:45,538 --> 00:07:48,442 into what was considered a low-level petty crime. 162 00:07:49,752 --> 00:07:51,045 The threat had gone away. 163 00:07:52,049 --> 00:07:53,207 Seven months later, 164 00:07:53,231 --> 00:07:56,389 the two brothers walked into the offices of Charlie Hebdo magazine 165 00:07:56,413 --> 00:07:59,218 and killed 12 people, wounded 11 more, 166 00:07:59,242 --> 00:08:01,908 with guns from the proceeds of those fakes. 167 00:08:02,603 --> 00:08:06,235 So whatever you think, this isn't a faraway problem happening in China. 168 00:08:06,259 --> 00:08:07,551 It's happening right here. 169 00:08:09,528 --> 00:08:10,885 And Paris is not unique. 170 00:08:11,642 --> 00:08:15,754 Ten years earlier, in 2004, 191 people lost their lives 171 00:08:15,778 --> 00:08:17,721 when a Madrid commuter train was bombed. 172 00:08:18,307 --> 00:08:22,561 The attack had been partly funded by the sale of pirate music CDs in the US. 173 00:08:22,880 --> 00:08:25,722 Two years prior to that, an Al Qaeda training manual 174 00:08:25,746 --> 00:08:28,316 recommended explicitly selling fakes 175 00:08:28,340 --> 00:08:30,991 as a good way of supporting terror cells. 176 00:08:32,574 --> 00:08:37,709 But despite this, despite the evidence connecting terrorism and counterfeiting, 177 00:08:37,733 --> 00:08:40,503 we do go on buying them, increasing the demand 178 00:08:40,527 --> 00:08:42,876 to the point where there's even a store in Turkey 179 00:08:42,900 --> 00:08:46,664 called "I Love Genuine Fakes." 180 00:08:46,688 --> 00:08:49,887 And you have tourists posing with photographs on TripAdvisor, 181 00:08:49,911 --> 00:08:51,648 giving it five-star reviews. 182 00:08:52,301 --> 00:08:54,736 But would those same tourists have gone into a store 183 00:08:54,760 --> 00:08:58,072 called "I Love Genuine Fake Viagra Pills" 184 00:08:58,096 --> 00:09:00,500 or "I Genuinely Love Funding Terrorism"? 185 00:09:01,282 --> 00:09:02,432 I doubt it. 186 00:09:03,564 --> 00:09:06,510 Many of us think that we're completely helpless 187 00:09:06,534 --> 00:09:08,620 against organized crime and terrorism, 188 00:09:08,644 --> 00:09:11,550 that we can do nothing about the next attack, 189 00:09:11,574 --> 00:09:12,986 but I believe you can. 190 00:09:13,755 --> 00:09:16,359 You can by becoming investigators, too. 191 00:09:17,875 --> 00:09:20,756 The way we cripple these networks is to cut their funding, 192 00:09:20,780 --> 00:09:22,392 and that means cutting the demand 193 00:09:22,416 --> 00:09:25,173 and changing this idea that it's a victimless crime. 194 00:09:25,197 --> 00:09:27,658 Let's all identify counterfeiters, 195 00:09:27,682 --> 00:09:29,181 and don't give them our money. 196 00:09:29,736 --> 00:09:32,396 So here's a few tips from one investigator to another 197 00:09:32,420 --> 00:09:33,704 to get you started. 198 00:09:34,633 --> 00:09:35,910 Number one: 199 00:09:35,934 --> 00:09:38,609 here's a typical online counterfeiter's website. 200 00:09:39,263 --> 00:09:40,413 Note the URL. 201 00:09:40,923 --> 00:09:43,884 If you're shopping for sunglasses or camera lenses, say, 202 00:09:43,908 --> 00:09:47,414 and you come across a website like medical-insurance-bankruptcy.com, 203 00:09:47,438 --> 00:09:49,003 start to get very suspicious. 204 00:09:49,027 --> 00:09:50,553 (Laughter) 205 00:09:50,577 --> 00:09:52,849 Counterfeiters register expired domain names 206 00:09:52,873 --> 00:09:56,149 as a way of keeping up the old website's Google page ranking. 207 00:09:57,401 --> 00:09:58,552 Number two: 208 00:09:58,576 --> 00:10:02,059 is the website screaming at you that everything is 100 percent genuine, 209 00:10:02,083 --> 00:10:05,290 but still giving you 75 percent off the latest collection? 210 00:10:06,003 --> 00:10:08,431 Look for words like "master copy," 211 00:10:08,455 --> 00:10:10,455 "overruns," "straight from the factory." 212 00:10:11,201 --> 00:10:14,321 They could write this all in Comic Sans, it's that much of a joke. 213 00:10:14,345 --> 00:10:15,954 (Laughter) 214 00:10:15,978 --> 00:10:17,212 Number three: 215 00:10:17,236 --> 00:10:19,112 if you get as far as the checkout page, 216 00:10:19,136 --> 00:10:24,399 and you don't see "https" or a padlock symbol next to the URL, 217 00:10:24,423 --> 00:10:27,035 you should really start thinking about closing the tab, 218 00:10:27,059 --> 00:10:29,337 because these indicate active security measures 219 00:10:29,361 --> 00:10:32,466 that will keep your personal and credit card information safe. 220 00:10:32,490 --> 00:10:34,583 OK, last one: 221 00:10:34,607 --> 00:10:36,811 go hunting for the "Contact Us" page. 222 00:10:36,835 --> 00:10:39,664 If you can only find a generic webform, 223 00:10:39,688 --> 00:10:43,613 no company name, telephone number, email address, postal address -- 224 00:10:43,637 --> 00:10:45,697 that's it, case closed. 225 00:10:45,721 --> 00:10:47,968 You found a counterfeiter. 226 00:10:47,992 --> 00:10:50,263 Sadly, you're going to have to go back to Google 227 00:10:50,287 --> 00:10:52,431 and start your shopping search all over again, 228 00:10:52,455 --> 00:10:55,365 but you didn't get ripped off, so that's only a good thing. 229 00:10:56,601 --> 00:11:00,173 As the world's most famous fictional detective would say, 230 00:11:00,197 --> 00:11:02,275 "Watson, the game is afoot." 231 00:11:03,027 --> 00:11:05,558 Only this time, my investigator friends, 232 00:11:05,582 --> 00:11:07,162 the game is painfully real. 233 00:11:07,973 --> 00:11:10,075 So the next time you're shopping online, 234 00:11:10,099 --> 00:11:11,996 or perhaps wherever it is, 235 00:11:12,020 --> 00:11:16,212 look closer, question a little bit deeper, and ask yourself -- 236 00:11:16,236 --> 00:11:19,147 before you hand over the cash or click "Buy," 237 00:11:19,171 --> 00:11:20,449 "Am I sure this is real?" 238 00:11:21,208 --> 00:11:24,658 Tell your friend that used to buy counterfeit watches 239 00:11:24,682 --> 00:11:27,656 that he may just have brought the next attack one day closer. 240 00:11:28,335 --> 00:11:30,810 And, if you see an Instagram advert for fakes, 241 00:11:30,834 --> 00:11:32,224 don't keep scrolling past, 242 00:11:32,248 --> 00:11:34,461 report it to the platform as a scam. 243 00:11:35,375 --> 00:11:38,437 Let's shine a light on the dark forces of counterfeiting 244 00:11:38,461 --> 00:11:39,946 that are hiding in plain sight. 245 00:11:40,460 --> 00:11:42,525 So please, spread the word 246 00:11:42,549 --> 00:11:43,970 and don't stop investigating. 247 00:11:44,385 --> 00:11:45,536 Thank you. 248 00:11:45,560 --> 00:11:49,730 (Applause)