Fake and counterfeit products are an ugly scar on the face of the global trading system. They are a significant source of funding for organized crime and terrorist organizations, and almost every sector of society and every product category is affected.

Illicit trade is the production, import, export, purchase, sale or possession of goods that fail to comply with a country’s legislation, and it’s a major and growing problem worldwide.

This means businesses are unable to compete fairly; unable to invest to the maximum extent to protect and create jobs and products; and unable to increase their profits and make higher contributions to local, state and national taxes.

The scale of tax loss from illicit trade for governments worldwide is staggering. The global tax loss for cigarettes alone is estimated to be US$50billion per annum. This is lost revenue that would otherwise be invested in essential infrastructure projects, healthcare, education and other government projects vital for the growth and prosperity of communities.

But losses are not only financial. It might be easy to dismiss illicit trade as largely victimless. After all, huge companies make enough money to not worry about a few cheap imitations. But what lies behind illicit trade is a complex web of criminality that impacts us all.

Like all organized criminal activity, illicit trade is run by motivated, sophisticated and ruthless criminal networks. In most cases the item being smuggled, counterfeited or traded is irrelevant – it is chosen because of the potential profit when considered against the risk of being caught and prosecuted.

And, it isn’t just about the direct harm caused by the goods being trafficked. Illicit trade fuels modern slavery, human trafficking, wildlife crime, corruption and the funding of terrorist groups.

If there is a demand for an illicit product, then organized crime groups will seize the opportunity to supply it. Not just fake or counterfeit luxury goods (handbags, sunglasses, clothing, shoes and fragrances), but medicines, cosmetics, toys, electronics, alcohol and tobacco, and even airplane components can be easily found on the ‘black market’ – online, on street corners, in suburban marketplaces.

The World Health Organization estimates the death toll attributable to counterfeit medicines to be more than 1 million persons annually. And, while it is often assumed high-income countries are not impacted, the OECD reports health damage due to fake medicines is almost equally distributed between developed and developing countries.

Join the fight to stop illicit trade:

• CHECK OUT our Stop The Illegal Empire video, and SHARE as widely as possible.

• LISTEN to our Exposing the Illegal Empire podcast series.

• NEVER buy cheap fakes and discourage others from buying them.

• LEARN MORE about Identifying and Responding to Illicit Trade by doing one of our CSI Learning FREE Illicit Trade available in English, Spanish or Portuguese.

And, if you know something about the manufacture, import, export or wholesale distribution of fake or counterfeit goods, Report now