Sage Journals: Discover world-class research

Abstract

The growing pace of e-commerce has facilitated the sale and distribution of counterfeit products. One reason may be that consumers cannot fully validate goods for sale online, thus creating tremendous opportunities for fraud. Despite the growth of online product counterfeiting specifically, little research has examined this crime which limits our basic understanding of the problem and victim reporting. Drawing on 2009 and 2010 complainant data from the Internet Crime Complaint Center, we examine the characteristics, costs, and reporting of online auction and non-auction product counterfeiting incidents. In light of the limitations of this study, we discuss the contribution of our findings for advancing theory and future research.

Keywords

product counterfeiting cybercrime criminal victimization

Get full access to this article

View all access options for this article.

References

Albanese

J. S.

(2011). Transnational crime and the 21st century: Criminal enterprises, corruption, and opportunity. New York, NY: Oxford University Press.

Anderson

(2004). Consumer fraud in the United States: An FTC survey. Washington, DC: Federal Trade Commission. Retrieved from www.ftc.gov/reports/consumerfraud/040805confraudrpt.pdf

Baker

W. E.

Faulkner

R. R.

(2003). Diffusion of fraud: Intermediate economic crime and investor dynamics. Criminology, 41, 1173–1206.

Balsmeier

Bergiel

B. J.

Viosca

R. C.

Jr (2004). Internet fraud: A global perspective. Journal of E-Business, 4, 1–12.

Bass

Hoeffler

(1992). Telephone-based fraud: A survey of the American public. New York, NY: Louis Harris and Associates.

Bate

(2008). Making a killing: The deadly implications of the counterfeit drug trade. Washington, DC: American Enterprise Institute Press.

Baum

(2006). First estimates from the National Crime Victimization Survey: Identity theft, 2004. Washington, DC: U.S. Department of Justice, Office of Justice Statistics. Retrieved from http://www.ojp.usdoj.gov/bjs/pub/pdf/it04.pdf

Blum

R. H.

(1972). Deceivers and deceived: Observations on confidence men and their victims, informants and their quarry, political and industrial spies and ordinary citizens. Springfield, IL: Charles C. Thomas.

Chow

D. C.

(2003). Organized crime, local protectionism, and the trade in counterfeit goods in China. China Economic Review, 14, 473−484.

10.

Chua

C. E. H.

Wareham

Robey

(2007). The role of online trading communities in managing Internet auction fraud. MIS Quarterly, 31, 750–781.

11.

Clarke

R.V.

Eck

J. E.

(2005). Crime analysis for problem solvers in 60 small steps. Washington, DC: US Department of Justice and the Center for Problem Oriented Policing.

12.

Dolan

K. M.

(2004). Internet auction fraud: The silent victims. Journal of Economic Crime Management, 2, 1–22.

13.

Eck

J. E.

(2002). Preventing crime at places. In Sherman

L. W.

Farrington

Welsh

MacKenzie

D. L.

(Eds.), Evidence-based crime prevention (pp. 241–294). New York, NY: Routledge.

14.

Federal Trade Commission. (2011). Consumer sentinel network data book for January–December 2010. Retrieved from http://ftc.gov/sentinel/reports/sentinel-annual-reports/sentinel-cy2010.pdf

15.

Forsythe

Liu

Shannon

Gardner

L. C.

(2006). Development of a scale to measure the perceived benefits and risks of on-line shopping. Journal of Interactive Marketing, 20, 55–75.

16.

Freeman

Sidhu

N. D.

Montoya

(2007, February). A false bargain: The Los Angeles County economic consequences of counterfeit products. Report. Los Angeles County Economic Development Corporation.

17.

Gartner, Inc. (2003). Gartner says marketers must differentiate e-mail marketing from spam: Spam will account for 60 percent of e-mail by end of 2004. Retrieved from http://www.gartner.com/press_releases/pr29sept2003a.html

18.

Gregg

D. G.

Scott

J. E.

(2006). The role of reputation systems in reducing on-line auction fraud. International Journal of Electronic Commerce, 10, 95–120.

19.

Heinonen

J. A.

Wilson

J. M.

(2012). Product counterfeiting: Evidence-based lessons for the State of Michigan. East Lansing, MI: A-CAPPP Paper Series.

20.

Holt

T. J.

(2003). Examining a transnational problem: An analysis of computer crime victimization in eight countries from 1999 to 2001. International Journal of Comparative and Applied Criminal Justice, 27, 199–220.

21.

Holt

T. J.

Graves

D. C.

(2007). A Qualitative analysis of advanced fee fraud schemes. The International Journal of Cyber-Criminology, 1, 137–154.

22.

Holtfreter

Reisig

M. D.

Blomberg

T. G.

(2006). Consumer fraud victimization in Florida: An empirical study. Saint Thomas Law Review, 18, 761–789.

23.

Holtfreter

Reisig

M. D.

Pratt

T. C.

(2008). Low self-control, routine activities, and fraud victimization. Criminology, 46, 189–220.

24.

International Anti-Counterfeiting Coalition. (2005, January). The negative consequences of international intellectual property theft: Economic harm, threats to the public health and safety, and links to organized crime and terrorist organizations. Report. Washington, DC: International Anti-Counterfeiting Coalition.

25.

ICC Counterfeiting Intelligence Bureau. (1997). Countering counterfeiting: A guide to protecting and enforcing intellectual property rights. Paris, France: International Chamber of Commerce Publishing.

26.

International Organization for Standardization. (2010). Fraud countermeasures and controls. Retrieved from http://www.iso.org/iso/standards_development/technical_committees/other_bodies/iso_technical_committee.htm?commid=580925

27.

Internet Crime Complaint Center. (2010). IC3 2010 Internet crime report. Retrieved March 24, 2010, from http://www.ic3.gov/media/annualreport/2010_IC3Report.pdf

28.

Internet Crime Complaint Center. (2011). IC3 2011 Internet crime report. Retrieved June 15, 2012, from http://www.ic3.gov/media/annualreport/2011_IC3Report.pdf

29.

James

(2005). Phishing exposed. Rockland, MA: Syngress.

30.

Kelly

(2005). Illicit trafficking: A reference handbook. Santa Barbara, CA: ABC-CLIO.

31.

Lai

K. K.

Zaichkowsky

J. L.

(1999). Brand imitation: Do the Chinese have different views? AsiaPacific Journal of Management, 16, 179–192.

32.

Liang

B. A.

(2006). Fade to black: Importation and counterfeit drugs. American Journal of Law & Medicine, 32, 279−323.

33.

Mason

Benson

(1996). The effect of social support on fraud victim’s reporting behavior: A research note. Justice Quarterly, 13, 511−523.

34.

McDonald

J. H.

(2009). Handbook of biological statistics. Baltimore, MD: Sparky House Publishing.

35.

Motor & Equipment Manufacturers Association (MEMA). (2009, January). Understanding the flow of counterfeit and gray market goods through the U.S. automotive and commercial vehicle parts marketplace. Report. Washington, DC: Motor and Equipment Manufacturers Association.

36.

Nasheri

(2005). Addressing the global scope of intellectual property crimes and policy initiatives. Trends in Organized Crime, 8, 79−108.

37.

National White Collar Crime Center. (2004). Intellectual property and white-collar crime: Report of issues, trends, and problems of future research. Washington, DC: US Department of Justice.

38.

Naylor

R. T.

(2003). Towards a general theory of profit-driven crimes. British Journal of Criminology, 43, 81–101.

39.

Nerenberg

(2000). Forgotten victims of financial crime and abuse: Facing the challenge. Journal of Elder Abuse and Neglect, 12, 49–73.

40.

Newman

Clarke

(2003). Superhighway robbery: Preventing e-commerce crime. Cullompton, England: Willan Press.

41.

Organization for Economic Cooperation and Development. (2007). The economic impact of counterfeiting and piracy. Report. Author. Retrieved from http://www.oecd.org/dataoecd/13/12/38707619.pdf

42.

Olsen

(2005). Counterfeiting and piracy: Measurement issues. Retrieved from http://www.oecd.org/dataoecd/42/44/35651123.pdf

43.

Phillips

(2005). Knockoff: The deadly trade in counterfeit goods: The true story of the world’s fastest growing crime wave. London, England: Kogan Page.

44.

Piquero

N. L.

(2005). Causes and prevention of intellectual property crime. Trends in Organized Crime, 8, 40–61.

45.

Raustiala

Sprigman

(2005). The knockoff ecomony: How imitation sparks innovation. Oxford, England: Oxford University Press.

46.

Rebovich

D. J.

Layne

(2000). National public survey on White collar crime. Morgantown, WV: National White Collar Crime Center.

47.

Schafer

J. L

Olsen

M. K.

(1998). Multiple imputation for multivariate missing-data problems: A data analyst’s perspective, Multivariate Behavioral Research, 33, 545–571.

48.

Schoepfer

Piquero

N. L.

(2009). Studying the correlates of fraud victimization and reporting. Journal of Criminal Justice, 37, 209–215.

49.

Sherman

Gartin

Buerger

(1989). Hot spots of predatory crime: Routine activities and the criminology of place. Criminology, 27, 27–55.

50.

Shichor

Sechrest

Doocy

(2000). Victims of investment fraud. In Pontell

Shichor

(Eds.), Contemporary issues in crime and criminal justice: Essays in honor of Gilbert Geis (pp. 87−96). Upper Saddle River, NJ: Prentice Hall.

51.

Thompson

J. W. C.

(2004). Bootleg billions: The impact of the counterfeit goods trade on New York City. Report. New York: City of New York Office of the Comptroller.

52.

Titus

R. M.

Heinzelman

Boyle

J. M.

(1995). Victimization of persons by fraud. Crime and Delinquency, 41, 54−72.

53.

Trahan

Marquart

J. W.

Mullings

(2005). Fraud and the American dream: Toward an understanding of fraud victimization. Deviant Behavior, 26, 601–620.

54.

United States General Accountability Office. (2010a, April). Intellectual property: Observations on efforts to quantify the economic effects of counterfeit and pirated goods (Report no. GAO-10-423). Washington, DC: Author.

55.

United States General Accountability Office. (2010b, October). Intellectual property: Agencies progress in implementing recent legislation, but enhancements could improve future plans (Report no. GAO-11-39). Washington, DC: United States General Accountability Office.

56.

van Dijk

J. J. M.

(2001). Attitudes of victims and repeat victims toward the police: Results of the International Crime Victims Survey. In Clarke

R. V.

Pease

(Eds.), Crime prevention studies (Vol. 12, pp. 27–52). Monsey, NY: Criminal Justice Press.

57.

Van Wyk

Mason

K. A.

(2001). Investigating vulnerability and reporting behavior for consumer fraud victimization: Opportunity as a social aspect of age. Journal of Contemporary Criminal Justice, 17, 328–345.

58.

Vaughan

Carlo

(1976). The appliance repairman: A study of victim-responsiveness and fraud. Journal of Research in Crime and Delinquency, 1975, 153–161.

59.

Wall

(2004). Digital realism and the governance of spam as cybercrime. European Journal on Criminal Policy and Research, 10, 309–335.

60.

Wall

D. S.

Large

(2010). Locating the public interest in policing counterfeit luxury fashion goods. British Journal of Criminology, 50, 1094–1116.

61.

Wilcox

Hyeong

M. K.

Sankar

(2009). Why do consumers buy counterfeit luxury brands? Journal of Marketing Research, 46, 247–259.

62.

Wood

P. A.

(2004). Spammer in the works: Everything you need to know about protecting yourself and your business from the rising tide of unsolicited “spam” e-mail. Retrieved from http://www.construct-it.org.uk/pages/sources/A%20spammer%20in%20the%20works.pdf

63.

Zhou

Dai

Zhang

(2007). Online shopping acceptance model: A critical survey of consumer factors in online shopping. Journal of Electronic Commerce Research, 8, 41–62.

Product Counterfeits in the Online Environment

Abstract

Keywords

Get full access to this article

References