A new report by Europol and the European Union Intellectual Property Office (EUIPO) warns that fraudsters and organised crime networks mainly use legal entities to avoid detection by authorities and thus take advantage of consumer preferences for low prices, even if they are counterfeit products.

The report ‘Descubriendo el ecosistema de la delincuencia contra la propiedad intelectual: un enfoque a los facilitadores’ (Uncovering the Intellectual Property Crime Ecosystem: A Focus on Enablers) illustrates the sophisticated methods used by fraudsters and organised crime groups to commit intellectual property (IP) crime and exploit consumer behaviour. It highlights the widespread impact of intellectual property crime on society as a whole, driven by counterfeit products and pirated content.

According to the report, approximately 86 million counterfeit goods were seized in the EU in 2022 alone, with an estimated total value exceeding €2,000 million. The study underlines that while consumers are attracted to low-priced consumer goods, their choices fully support a range of other serious crimes, such as cybercrime, money laundering and even environmental crime.

The health and safety of consumers is endangered by the emergence of counterfeit pharmaceuticals from clandestine and dangerous laboratories that expose workers and the public to harmful substances. Moreover, the digital domain has become a battleground, with cybercriminals creating sophisticated fake websites that not only sell counterfeit goods, but also collect consumers’ sensitive payment information, further intertwining IP crime with cybercrime.

Overall, the report highlights the growing sophistication of intellectual property criminals. Organised criminal networks extend across borders and engage in the import, export and production of counterfeit goods, most of which are produced in China, including Hong Kong, and Turkey.

According to the document, the perpetrators of these operations are not amateurs, they use legal structures at all stages of intellectual property crime and select jurisdictions where it is difficult for EU law enforcement to shut them down or where sanctions are low. In many cases, counterfeit products are produced outside the EU and then end up with fake labels, logos and packaging in different parts of Europe.

The conference held last October, entitled ‘Follow the Money to Fight IP Crime’, brought together experts from law enforcement, the private sector, EU agencies, international organisations and the academic world. Its purpose was to share experiences and best practices, and to explore opportunities and challenges in the fight against intellectual property crime.

The conference began with a full day programme covering key topics such as enablers and the consequences of intellectual property crime, financial investigations to combat intellectual property crime, asset recovery related to intellectual property crime, and the impact of intellectual property crime on public health and the environment. The day also included discussions on the United States’ perspective on financial and intellectual property crime. On the second day, the conference programme focused on the role of social media influencers in promoting counterfeit purchases, and strategies to improve the ability of financial investigations to combat intellectual property crime.

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In early October this year, an investigation led by the French Gendarmerie, involving the Italian Carabinieri Corps and the Swiss Federal Police, with the support of Europol and Eurojust, led to the dismantling of a criminal network of counterfeit French Protected Designation of Origin (PDO) wines in Italy. The criminal network counterfeited French red wine, charging up to €15,000 per bottle. The fake wine was produced in Italy, then delivered via an Italian airport and exported for sale at market value around the world by wine merchants unaware of the alleged scam.

The operation resulted in:

• 6 arrests (one high-value target) and
• 14 house searches in Turin and Milan
• Seizures included: large quantities of counterfeit wine bottles of different Grand Cru domains, wine bottle stickers and different wax products, wine refilling ingredients, technical machines to recover bottles, luxury goods and electronic equipment valued at €1.4 million, more than €100,000 in cash, and various documents of interest.

The modus operandi of the criminal network, combined with the characteristics of the counterfeits, led investigators to establish a link with a previous investigation supported by Europol targeting the counterfeiting of PDO wine. Forensic operations carried out on these high-value objects revealed the techniques used by the criminal network to counterfeit excellent quality French wine.

Connections were also found between the two investigations while investigating the manufacturers of stoppers and capsules and the label printers. This investigation, which had been closed in 2015, involved a Russian national who was also linked to the current investigation. Further enquiries uncovered business transactions conducted between Italy and Switzerland. Other bottles were later discovered with similar signs of counterfeiting.

In 2014, a latent trace was discovered on the back of a label, revealing a connection to an individual already known to the authorities from a previous similar case. The investigation into an international network counterfeiting luxury wines led to the arrest of a Russian individual associated with two winegrowers, both of Italian nationality. However, since 2019, new counterfeits have appeared in Europe, specifically in the Swiss and Italian markets. Investigations showed that the old counterfeit bottles were still being sold alongside new ones with copies of the new security features. Investigation leads and international information exchange via Europol enabled the French Gendarmerie unit handling the case to identify this new distribution route for counterfeit bottles through the identity of the Grand Cru domains.

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Dutch, French and German law enforcement agencies joined forces to arrest criminals who caused millions of euros in damage by blowing up ATMs.

It was in the early hours of 16 October 2024 when police forces from the three countries arrested three members of a violent criminal network that carried out explosive attacks on ATMs. Europol brought together investigators from the three countries to arrest the criminals, who are believedto have looted millions of euros and caused similar amounts of property damage between 2022 and 2024.

As part of a day of police action carried out in several locations in the Netherlands, France and Germany, law enforcement also searched car rental companies whose vehicles had been used to flee crime scenes. This criminal network in particular was one of the first to use locations in France as hideouts and to rely on getaway cars rented from a French rental company. These raids led to the gathering of extensive evidence, thus facilitating broader, more logistical investigations into members.

For several years now, criminals have increasingly been using solid explosives, mainly derived from fireworks, to blow up ATMs. This has significantly increased the danger and collateral damage of their attacks. The criminals, who are often located in the Netherlands, take extreme risks and act unscrupulously, both at the scene of the crime and when escaping in high-powered vehicles. As the attacks are often carried out in residential areas, ATM explosions and subsequent high-speed escapes can cause serious damage to buildings and residents.

To combat this phenomenon, law enforcement agencies in the countries concerned are continuously expanding their cross-border collaboration. For this particular operation, Europol brought together Dutch, French and German investigators to work on intelligence and plan the coordinated day of action. A Europol specialist with a mobile office was sent to the coordination centre to cross-check the operational results against Europol’s databases.

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The Latvian State Police, in collaboration with Europol, has dismantled a large-scale clandestine laboratory involved in the production of synthetic drugs throughout the European Union. The illegal laboratory was a key location for synthetic drug production in Europe, especially due to its recurring appearance in numerous investigations.

Europol worked closely with Latvian partners to identify and monitor the criminal network responsible for the production and distribution of synthetic substances, including synthetic cathinones and other high-risk drugs.

The operation, which concluded with coordinated entries and searches at the beginning of October throughout Latvia, resulted in the arrest of eight individuals suspected of being involved in production. Among the detainees were key figures within the organisation.

Seized materials during the action day:

• Seizures of over a ton of finished synthetic drugs;

• More than 38,000 litres of various chemical liquids, including precursors and base substances, prepared for the production of synthetic drugs;

• Laboratory equipment and various items related to drug production;

• 5 vehicles: 3 cars and 2 lorries;

• Multiple mobile phones, SIM cards, a laptop, and other relevant elements for the investigation.

To support the Latvian authorities, Europol deployed its team prepared to dismantle the tactical laboratory in Aluksne, near the Russian border, and thereby assist in taking down the laboratory. There, Europol provided full operational support to quickly and accurately identify drugs and chemical substances. This rapid identification was essential to obtain crucial evidence.

Dismantling these clandestine drug laboratories is a priority for Europol in its fight against the production and distribution of illicit drugs across Europe. These clandestine facilities represent a significant threat to public safety, not only because of the harmful substances they produce, but also because of the environmental and health risks associated with their illegal operations. Through these laboratories, Europol and its partners aim to disrupt the supply chains of criminal organisations. This effort is a key component of Europol’s wider strategy to combat drug trafficking.

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At the end of September this year, in Apeldoorn, the Netherlands, 76 experts from 27 countries came together to monitor, detect, and investigate various clues about Internet-enabled human trafficking activities. Online human trafficking is a growing threat that transcends borders. Although the surface network remains a key tool for human traffickers, the complexity of identifying online exploitation indicators poses significant challenges.

Europol and its partners are using international cooperation and technological expertise to counter these threats, working with the aim of protecting vulnerable people and dismantling criminal networks. This joint action aimed to identify key indicators of human trafficking on online platforms, explore how traffickers can misuse legitimate business structures, and progress with new criminal investigations.

The experts also participated in training workshops where they tackled urgent challenges such as the criminal use of social media platforms for organ trafficking, the use of cryptocurrencies and cryptographic patterns, the identification of trafficking on gaming platforms, and other technical aspects of online investigations into human trafficking.

Some of the results include:

• 252 verified entities (such as platforms, people, usernames, locations, and phone numbers)
• 40 reviewed digital platforms (for sexual and labour exploitation and organ trafficking)
• 16 suspected human traffickers identified
• 60 potential victims of human trafficking identified

During the action days, the investigators focused on gathering insights into how criminals use online ads to recruit victims and facilitate transportation and accommodation. The experts identified a dark web where hundreds of human traffickers offer a wide variety of services, including victims of both genders and all ages. Prices vary between $800 and $2,000 per hour, depending on the age and “skills” of the victims. On the same website, a permanent placement of a child is sold for between $20,000 and $60,000.

The researchers also intended to identify platforms that could facilitate human trafficking and exploitation, based on crime as a service. Their online investigation covered the possible trafficking and exploitation of Ukrainian victims, as well as the use of lesser-known social media platforms to facilitate human trafficking.

The experts have identified a new phenomenon: e-pimping. This emerging trend is of growing interest to attackers. The researchers detected two platforms offering ‘lifestyle courses’ and training for men who want to become OnlyFans managers, essentially instructing them on how to become online pimps and exploit women.

Europol supported the coordination of the operational activities, facilitated the exchange of information and gave analytical support. On the police action day, Europol sent an expert to the coordination centre to facilitate real-time information exchange and cross-check operational information with Europol databases. This provided the participating officers and the police authorities with additional leads on the investigation.

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