2 August 2004 - Investigators launch raids on dodgy DVD sellers
Investigators took part in a nationwide operation to uncover the rip-off merchants who claim benefits while making a living from selling dodgy DVDs to bargain hunters.
DWP anti-fraud investigators combined forces with the police and Trading Standards to swoop on wheeler dealers at markets and car boot sales in the North East, East of England and Yorkshire flogging the likes of “Troy”, “Spiderman 2” and “Shrek 2”.
The Operation code-named Zouk, saw 57 people arrested who could face charges on benefit fraud and copyright offences – 45 of those arrested were on benefits. The raids netted over half a million pounds worth of DVDs and CDs.
Tip-offs came from the public and honest traders who are sick of taxpayers’ money lining the pockets of cheats rather than going on services like schools and hospitals and tired of being conned with shoddy merchandise.
Anti-Fraud Minister Chris Pond said:
“This is an excellent example of how well we can tackle benefit fraud when we work closely with other agencies. Benefit cheats rip off the public to the tune of £2billion a year. That’s £80 per household.
“We’ve already cut fraud in the two main benefits by 40% and operations like this send out a clear message to benefit crooks; ‘We’re on to you’”.
The investigators also worked closely with organisations in the music and film industry – the Mechanical Copyright Protection Society (MCPS), the British Phonographic Institute (BPI) and the Federation Against Copyright Theft (FACT).
Nick Kounoupias, of the MCPS anti-piracy unit, said:
“Counterfeiting costs us all in the long run. Around £10bn a year is spent on counterfeit goods and much of it is ploughed back into other criminal activity. On top of that the £1.7bn in lost taxes could be spent on education and health care.”
“It is becoming increasingly important for us to work together to tackle all aspects of fraud. These operations are perfect examples of this.”
Notes for editors
- Operation Zouk has proved very successful. In July there were three raids on markets (Liverpool, Exeter and Wakefield) which alone recovered £1.1 million in counterfeit goods and led to investigations into 15 people about benefit fraud. We also uncovered two Counterfeiting Factories – one of which was operating out of the home of a benefit recipient.
- FACT noted that Lottery-funded UK film success Bend it like Beckham, Gosford Park and 28 Days Later have all been targeted by DVD pirates, and pirates of Hollywood blockbusters The Hulk, Terminator 3, Pirates of the Caribbean, and the UK-filmed Tomb Raider 2 were available before their actual cinema release.
- Nine out of ten pirated DVDs of films that have not yet been officially released are filmed from the back of a cinema with a camcorder.
- The National Benefit Fraud Hotline number is 0800 854 440. Lines are open between 7am and 11pm seven days a week or you can report a cheat online via: www.targetingbenefitfraud.gov.uk
- The Department for Work and Pensions has targets to reduce fraud and error in Income Support and Jobseeker’s Allowance by 33 per cent by March 2004 and by 50 per cent by March 2006. The department also has a target to reduce fraud and error in Housing Benefit by 25 per cent by March 2006.
- DWP, in partnership with local authorities, is carrying out more prosecutions and sanctions against fraudsters than ever before – in 2002/03 there were over 32,000 prosecutions and sanctions. The Fraud Act 2001 gave fraud investigators more powers to catch and punish offenders, including greater powers to check records with other organisations.
- The new Targeting Fraud campaign was launched in June 2003 with the slogan “We’re on to you.” It features a sinister spotlight that follows fraudsters as they work, to warn potential criminals the Department knows when and where people try to commit benefit fraud.
For more information contact Ruth McAllister or Kathy Barlow on 020 7238 0758/0723
Press office: 020 7238 0866
Out of hours: 07659 108 883
Public enquiries: 020 7712 2171
Website: www.dwp.gov.uk