Feds seize 150 websites in counterfeit crackdown

WASHINGTON (AP) — Federal authorities have shut down 150 websites accused of selling knock-off or pirated merchandise to unsuspecting online bargain hunters.

Immigration and Customs Enforcement Director John Morton and Assistant Attorney General Lanny A. Breuer announced the results of the ICE and FBI three-month investigation on "Cyber Monday," the day that for many shoppers kicks off the online holiday shopping season.

The government seized the domain names for the sites that sold everything from fake replica NBA jerseys to replica Louis Vuitton handbags and imitation Ugg boots.

"This is straight crime," Morton said. "This is people being duped into buying a counterfeit."

The federal government has seized the domain names of 350 websites since first targeting online counterfeiters in June 2010. Each investigation, Morton said, has grown.

Visitors to the seized domains are now greeted with a message from federal authorities explaining that the site has been seized by the government and a warning that "willful copyright infringement is a federal crime."

Morton and Breuer said while the domain names were registered in the United States most of the websites were run from abroad, primarily in China. No one has been charged with a crime in connection with the most recently seized domains. But Breuer said the investigations are ongoing.

Earlier this year five people were indicted in Virginia on conspiracy and copyright infringement charges for their roles in operating a website that the Justice Department said allowed people to illegally download high-quality movies and television shows.

Four people accused of running NinjaVideo.net have pleaded guilty. A fifth person is being sought.

It's unclear how much money the seized sites have made, or potentially cost legitimate companies. Breuer said since the crackdown on counterfeit sellers started last year, Internet users have gone to the seized domains more than 77 million times.

"Typically we don't track the volumes of sales of these particular sites," Morton said, adding that criminal organizations often hide ill-gotten profits. "It is very large figures. Well, well above millions."

Morton said it may seem like a trivial thing to buy a knock-off football jersey or look-alike sunglasses, but the profits seized by counterfeiters can help fund far more nefarious activities.

"This is increasingly not simply a matter of mom and pop violations at the corner of Fourth and Main," Morton said. "We are worried about organized crime and (that profits) are going to fuel other criminal activity."

Morton would not say if organized criminal groups are suspected of running any of the seized sites to help fund other criminal acts.

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Crackdown on fake shopping sites

21 November 2011 Last updated at 10:32 ET

The police will continue its campaign against rogue trading sites in the run-up to Christmas

More than 2,000 web shops selling fake or non-existent goods have been shut down by police.

Goods purportedly from GHD, Ugg, Tiffany and Nike had been peddled by the sites, said the Metropolitan Police E-Crime Unit.

It said shoppers had been tempted by low prices.

The unit warned that the goods supplied were counterfeit, adding that many sites had taken payment and then not despatched any products in return.

It said many of the sites had been simply set up by cyber thieves to harvest credit card and banking details.

Precautions

Police officers worked with domain registrars to identify the rogue traders and then used Nominet's powers to seize and shut down the offending domains.

Detective Inspector Paul Hoare from the E-Crime Unit said many gangs registered sites in bulk solely to dupe customers. He said the campaign to close the criminal sites would continue in the run-up to Christmas.

"I would urge customers to take all precautions to ensure they buy from legitimate sites only," he said.

DI Hoare said consumers should check a website's credentials to ensure it was approved and reputable. He said they should also consider using a credit card for payments over £100 and perhaps reserve one card for online shopping.

DI Hoare said shoppers should also be wary of unsolicited offers that arrive via email.

The E-Crime Unit took similar action in 2010 when it shut down about 1,800 sites.

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