Europol records surge in fake pharma goods during COVID-19 crisis
Demand for counterfeit products, particularly fake pharmaceutical and healthcare products, has surged and will continue throughout the current COVID-19 crisis, despite potentially harmful effects on consumers, according to Europol.
Published on Friday, April 17, “ Viral marketing - Counterfeits, substandard goods and intellectual property crime in the COVID-19 pandemic”, provided an up-to-date threat picture of the activities of counterfeiters during the crisis, noting that the estimated profits from the trade of these goods are “substantial”.
The threat from counterfeit products related to COVID-19 emerged quickly, according to Europol, with organised crime groups (OCGs) involved in the production and distribution of counterfeit goods proving highly adaptable once again, exploiting “shortages of genuine products and the fear and anxieties of regular citizens”.
The production of COVID-19-related counterfeit pharmaceutical and healthcare products closely followed the spread of the pandemic to markets in the EU.
“After the widening outbreak and introduction of restrictive measures to contain the outbreak, these types of products rapidly appeared on the market in all member states,” said the report, adding that Europol expects that, with an end or with the diminishing impact of the pandemic, criminals will shift to alternative goods.
Europol has also been monitoring social media platforms to follow the spread of conversations around the distribution of counterfeit goods online.
The report added: “Unsurprisingly, conversations on platforms such as Twitter about counterfeit goods related to COVID-19 closely follow more widespread outbreaks and the introduction of restrictive measures to prevent the spread of the virus in different member states.”
Made in China and India
The OCG’s involved in the production and trafficking of the COVID-19-related counterfeit goods have remained the same as prior to the pandemic. But criminals and OCG’s who weren’t previously involved are now exploiting opportunities related to the distribution of such goods in the EU.
It’s suspected that the majority of counterfeit pharmaceutical products and active ingredients sold in the EU originate from China and India, which “both host significant licit and illicit pharmaceutical and chemical industries”.
An analysis of the operational data provided to Europol reveals that the companies targeting the EU for distribution of counterfeit pharmaceutical products and equipment are registered to addresses both within the EU (Bulgaria, Germany, Netherlands, Poland among others) and outside the EU (China, India, United States), according to the report.
Chloroquine scams
“The counterfeiting of pharmaceutical products has been one of the most insidious forms of profiteering during a global pandemic. Counterfeiters have seized the opportunity to exploit the demand for drugs offering potential as treatment options in fighting COVID-19 infections,” said the report.
Chloroquine, which is normally used in the treatment of malaria, has shown some promise as a treatment for some COVID-19 cases but it’s efficacy yet to be confirmed by clinical studies.
But that hasn’t stopped counterfeiters and fraudsters, who quickly began offering chloroquine, either to distribute counterfeits of the substance or as part of scams.
Europol’s analysis of the websites and companies offering suspected counterfeit chloroquine found that almost all had a US dialling code.
More generally, criminals offering counterfeit pharmaceuticals appear to particularly target European and North American markets.
While some of the platforms being used to advertise and sell these counterfeit goods pre-date the pandemic, a “significant” number of new websites have been established for the express purpose of profiting from the pandemic.
Europol noted that these websites sell fake COVID-19 home test kits and offer unconfirmed and often false advice on the treatment of COVID-19.
An eye on the future
Europol has warned that particular attention needs to be paid to developments and criminal innovation if a genuine vaccine for COVID-19 is developed. A genuine vaccine is likely to “prompt a wave of offers for counterfeit vaccines”.
“However, the development of a vaccine will also likely result in an immediate drop in demand for counterfeit pharmaceutical and healthcare products. Criminals involved in the trade of counterfeit products prior to the outbreak of the COVID-19 pandemic will turn to other commodities to counterfeit and distribute,” added the report.
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