What Is Counterfeiting? Everyone Should Aware While Investing

What Is Counterfeiting

Counterfeiting means to copy something authentic, to destroy, steal or replace the document (original). It is used in illegal activities or used to deceive a trader.

The term “Counterfeiting” is used generally for both forgeries of documents and currency. It also includes copying of shoes, automobile parts, handbags, pharmaceuticals, clothing, unapproved parts of aircraft ( led to many accidents), software, movies, work of art, watches, toys, and electronic items ( both furnished product and internal parts).

Usually, these products have fake company brands and logos, which results in trademark and patent violations in case of these products. They contain harmful chemicals like lead and are of lower quality which harms the reputation of the company being forged. Thousands of hundreds of deaths in the world are caused due to aviation and automobile accidents, halting intake of essential compounds (especially taking wrong or non-working medicine), and poisoning.

Counterfeiting of cash, usually paper money, has aggressively affected the government worldwide.

Forgery of Government Bonds or Money

The amount is the currency that is generated without the legal sanctioning of the government or state; it is against the legal boundaries of all countries. The United States Secret Service is popularly known for its protection of the official task. It was established to resist the counterfeiting of money in America.

Counterfeit bonds (government) are a public debt tool that is generated without legal sanctioning, with the view of cashing them in an authentic currency or utilizing them as collateral to protect lines and loans of credit through the authorized channel.

Counterfeiting of Documents

Forgery refers to the act of modifying or making the documents with the ill intention to cheat someone. It comes in the types of fraud and often serves as the primary tool for accomplishing identity theft. The famous term used for forgery in non-official documents (such as firm’s weight and time logs) in United States law is publishing and uttering.

Examination of questions is a systematic scientific process for examining various aspects of many documents and is often used for reviewing the verity and provenance of a doubted forgery. Security printing is a specialty of the printing industry that primarily focuses on creating such types of documents that are too hard to forge.

Counterfeiting of Consumer Goods

The knock-offs or counterfeit goods or rip-offs have significantly increased across the world in recent years, and with this range of goods subjected to violations has also surged considerably. Accessories and apparel estimated about 50 percent of the counterfeit goods. These goods are seized by Border Control and the United States Customs.

The CIB (Counterfeiting Intelligence Bureau) of the ICC or International Chamber of Commerce has published a report on counterfeiting. It shows that counterfeit goods make up five to seven percent of the world’s total trade. However, these dates cannot be controlled because these industries work secretly.

Another report released by the Organisation for Economic Development and Co-operation in 2005 shows that up to $200 Billion of the total international trade is covered by illegally forged goods and counterfeit.

These estimates were updated in November 2009 by the OECD, concluding that the percentage of illegitimate goods in global trade has increased. The data shows that it has surged from 1.85% to 1.95% from the year 2000 to 2007 and overall reached $250 billion globally.

Bottom Line

The people practicing counterfeits never think about the quality and its effect on the general public and government administration. One should refrain from purchasing such kinds of goods and be vigilant towards such practices.

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