Online Frauds : Overview

Onine fraud is now a global problem, statistically accounting for 5-7% of all international trade.  Fraudulent activities seem to be centring on e-auction websites where goods are fenced, diverted or counterfeited.

Fenced goods are items that have been acquired via illegal methods – for example, an employee might sell online goods stolen from the company.  

Diverted goods are legitimate products that are made available for illegal sale within a market for which it wasn’t originally intended – for example, a distributor might sell products outside the assigned geographical area.

Counterfeited goods are products that look authentic, but in reality abuse the original brands copyright, patent and IPR (intellectual property rights) by essentially copying the design and functionality of the original product itself.

Fenced, counterfeited and diverted goods do not only target items from the most famous brands but literally anything you can buy.  It has now reached a level where virtually every country is affected by intellectual property right infringements.