The underground world of counterfeiting scams Americans out of billions of dollars. Now there's a new twist deceiving consumers. TODAY National Investigative Correspondent Jeff Rossen reports.
It's been going on for decades: Counterfeiting of everything from electronics to software. But now the criminals have become so sophisticated that they're buying real ad space and selling to you on popular and trusted websites we visit every day. And some say those websites are profiting from it.
We went on the hunt with U.S. Customs and Border Protection, searching incoming cargo to stop a criminal epidemic before it reaches your home: expertly designed counterfeit products sold as real. And where are Americans finding them? On top sites like eBay and on Google, where criminals pay big bucks for prime placement.
Real business High school senior Lauren McMillen just wanted to learn Spanish. So her dad went on eBay and spent $200 on what he thought was a never-opened Rosetta Stone software kit. "The ad said it was brand new and shrink-wrapped," Brian McMillen said. "Seemed absolutely legit."
It arrived and it looked legit, down to the instruction manual, stickers, even inscriptions on the disks. But, Brian said, "We tried to install it, and it kept popping up an error message every time you started the product."
It didn't work because it's a fake. Authorities say some even install viruses on your computer to steal your personal information. "It's not just some college kid in their basement putting this together," Lauren McMillen said. "This is a real business going on, and somebody is making a lot of money off of it."
Companies respond to Rossen Reports segment about counterfeits sold online
TODAY
updated 2/23/2012 4:01:32 PM ET
Below are statements to NBC News from representaives of eBay and Google in response to a Feb. 24 Rossen Reports segment about counterfeit goods sold online:
Statement from eBay spokesperson Amanda Miller:
"Counterfeits are illegal and not welcome on any of eBay's sites. eBay is committed to providing a safe, secure online shopping experience to millions of people globally, and plays an industry leading role in partnering with law enforcement and brand owners to combat the sale of counterfeits. eBay has over 300 million listings on its site at any given time. Within one day of the item being listed it was discovered by our Trust and Safety team, deemed fraudulent and removed. Unfortunately this was after the buyer purchased it, but because of eBay's Buyer Protection Program, the buyer was refunded the full amount of his purchase."
Read statements from Google spokesperson Diana Adair at link ^