With the holiday shopping season in full swing, federal investigators sent a warning to consumers Friday and urged them to be aware of counterfeit products that cost U.S. retailers an estimated $200 to $250 billion a year in lost revenue, according to the U.S. Department of Homeland Security.
"Back in the day when counterfeit goods came in these big shipping containers, they were easier to target," said Claude Arnold, special agent in charge of Homeland Security Investigations for Los Angeles.
But the emergence of "copycat" websites that mimic established brands has made it increasingly difficult for consumers to know when they're being ripped off by knockoffs, said Arnold, who also warned of potential health dangers.
"Often when we test these, we find carcinogens in these products in perfume and cosmetics," he said. "Often we find things like animal urine in perfume."
The counterfeiters have also become savvier by selling better quality products, which they sell at a higher price point, Arnold said.
"We're seeing a lot of counterfeiters which have a product of higher quality or they're selling on a website that looks legitimate," said Arnold. "That does a couple of things: it tricks the consumer into thinking they're buying genuine thing and it increases their profit margin. So it's a win-win for them."
Last year, Homeland Security Investigations and U.S. Customs and Border Protection seized more than 24,000 counterfeit items nationwide, which is up seven percent compared to the previous year.
