0:00:02 > 0:00:06Welcome to a world where nothing is quite as it seems.
0:00:06 > 0:00:09Welcome to Fake Britain.
0:00:09 > 0:00:11SHOUTING
0:00:20 > 0:00:22SHOUTING
0:00:22 > 0:00:24Put your hands behind your back now!
0:00:24 > 0:00:26Here at the Fake Britain house,
0:00:26 > 0:00:29we'll reveal the fakes that are flooding the market.
0:00:29 > 0:00:33Conning people like you and me and making money for the criminals.
0:00:33 > 0:00:35We'll investigate the fraudsters
0:00:35 > 0:00:40who are selling us something that isn't real and could be dangerous.
0:00:40 > 0:00:43And we'll help you avoid falling for a fake.
0:00:45 > 0:00:46Today on Fake Britain...
0:00:47 > 0:00:50The movie has won the hearts of children across the world
0:00:50 > 0:00:54but the fake merchandise has left one little girl scarred for life.
0:00:54 > 0:00:58The blood was absolutely flowing out of her face.
0:00:58 > 0:01:02The fake hi-tech coat that could have chilling consequences.
0:01:02 > 0:01:06If a consumer was counting on a jacket for their survival
0:01:06 > 0:01:08and they bought a counterfeit jacket,
0:01:08 > 0:01:11that could result in a life-and-death situation.
0:01:11 > 0:01:13And the fraudsters trying to steal millions
0:01:13 > 0:01:15from taxpayers and charities.
0:01:15 > 0:01:18It makes you intensely angry that somebody could come
0:01:18 > 0:01:21and take money away from hard-working people.
0:01:28 > 0:01:30Even if you don't have young children,
0:01:30 > 0:01:35you can't have escaped the phenomenon that is the Disney blockbuster,
0:01:35 > 0:01:36Frozen.
0:01:36 > 0:01:39It quickly became the highest-grossing animated film
0:01:39 > 0:01:42of all time and demand for the merchandise has been huge -
0:01:42 > 0:01:47with toys, dolls, games and much more flying off the shelves.
0:01:47 > 0:01:49They just can't make it fast enough.
0:01:49 > 0:01:52Little wonder then that the fakers have grabbed their slice
0:01:52 > 0:01:55of the Frozen pie.
0:01:55 > 0:01:58But the consequences for some kids have been truly shocking.
0:02:00 > 0:02:03Frozen tells the story of Princess Elsa
0:02:03 > 0:02:06who turns everything she touches to ice and snow,
0:02:06 > 0:02:10- and her little sister, Anna... - Really?- ..who sets out to save her.
0:02:10 > 0:02:11That's my sister.
0:02:13 > 0:02:16Kids who adored the film went even crazier for the merchandise,
0:02:16 > 0:02:21with dresses, dolls and soft toys all selling out at Christmas time.
0:02:21 > 0:02:24Parents who couldn't get their hands on the toys in the shops
0:02:24 > 0:02:27quickly turned to the internet, where the fakers were only too happy
0:02:27 > 0:02:28to fill the demand.
0:02:29 > 0:02:33But give these fakes to a child and their smiles may turn to tears.
0:02:37 > 0:02:40One dad with a Frozen-mad daughter is Stuart Broll,
0:02:40 > 0:02:42from Stockton-on-Tees.
0:02:42 > 0:02:45My daughter Lydia is pretty much obsessed with Frozen,
0:02:45 > 0:02:47like most girls are these days.
0:02:49 > 0:02:50She loves it.
0:02:51 > 0:02:53Like any loving dad,
0:02:53 > 0:02:55Stuart wanted to make his daughter's dreams come true.
0:02:55 > 0:02:59So, he bought her some Frozen toys.
0:02:59 > 0:03:01I'd been looking online one night, looked on eBay
0:03:01 > 0:03:06and they've got a massive selection of Frozen products.
0:03:06 > 0:03:09Stuart chose a watch with a bendy metal strap
0:03:09 > 0:03:11that would wrap around his daughter's slim wrist.
0:03:11 > 0:03:14Known as slap or snap bands,
0:03:14 > 0:03:16these accessories come in a wide range of designs
0:03:16 > 0:03:18and are popular with children,
0:03:18 > 0:03:20who enjoy slapping them round their wrists.
0:03:20 > 0:03:23Lydia is quite small and I did have trouble, obviously,
0:03:23 > 0:03:24getting a watch to fit her.
0:03:24 > 0:03:26So, I thought with it being a snap band,
0:03:26 > 0:03:28it would be the best alternative.
0:03:28 > 0:03:30It would actually fit round her hand neat and tidy
0:03:30 > 0:03:31and it wouldn't fall off.
0:03:33 > 0:03:37Stuart also bought a stuffed toy in the shape of Sven the reindeer,
0:03:37 > 0:03:39one of the characters from Frozen.
0:03:39 > 0:03:43But when the toys arrived, Stuart made an appalling discovery.
0:03:43 > 0:03:47On inspection, I found that the metal legs inside
0:03:47 > 0:03:50was actually sticking through the outer covering of the animal.
0:03:50 > 0:03:52I couldn't even think about the damage that
0:03:52 > 0:03:53could have done.
0:03:53 > 0:03:55I mean, it's horrific.
0:03:55 > 0:03:57You know, it's a metal rod that's sticking through.
0:03:57 > 0:04:00The amount of damage that could have caused,
0:04:00 > 0:04:02it's not even worth thinking about to be quite honest.
0:04:03 > 0:04:06The slap watch was equally deadly.
0:04:06 > 0:04:09Sadly, on inspection and cutting it open,
0:04:09 > 0:04:13I found a metal tape measure to be used inside.
0:04:13 > 0:04:15Shockingly, the wristband was simply made
0:04:15 > 0:04:17from a standard builder's measuring tape
0:04:17 > 0:04:21that had been cut to the right shape and covered with cheap plastic.
0:04:21 > 0:04:24It is absolutely razor-sharp down the sides
0:04:24 > 0:04:28and also at the corners where it's actually been cut down.
0:04:28 > 0:04:30Thankfully, Stuart managed to spot the danger
0:04:30 > 0:04:34and remove the toys before Lydia was hurt.
0:04:34 > 0:04:37I'm absolutely disgusted that people are actually selling these products
0:04:37 > 0:04:38in the first place.
0:04:38 > 0:04:41That could potentially harm or even kill a child.
0:04:44 > 0:04:48But one father who wasn't so lucky is Nathan Stodden from Cornwall.
0:04:48 > 0:04:53Nathan's dad to three girls - Chelsea, Bethany and Madison.
0:04:53 > 0:04:57Like other girls their age, they too are fanatical about Frozen.
0:04:57 > 0:05:00When six-year-old Bethany and three-year-old Madison
0:05:00 > 0:05:03were invited to a friend's Frozen-themed birthday party
0:05:03 > 0:05:06one Saturday afternoon, they were delighted.
0:05:06 > 0:05:08After the event, both girls were given a party bag
0:05:08 > 0:05:11containing a Frozen slap wristband.
0:05:11 > 0:05:13They absolutely loved them.
0:05:13 > 0:05:15As soon as Bethany had the wristband, yeah,
0:05:15 > 0:05:20it was on and she's slapping away and playing with it. Weren't you?
0:05:23 > 0:05:26Bethany loved the wristband so much she didn't take it off
0:05:26 > 0:05:28and was still wearing it the next morning.
0:05:30 > 0:05:32Then I was in the kitchen doing the dishes.
0:05:32 > 0:05:34The kids were upstairs playing and bouncing around.
0:05:34 > 0:05:38And I heard a massive scream from upstairs.
0:05:40 > 0:05:44Nathan was about to be confronted with a shocking sight.
0:05:44 > 0:05:48Bethany had come walking into the kitchen with footprints of blood.
0:05:49 > 0:05:54Blood dripping down her face with a massive open wound,
0:05:54 > 0:05:56which was very, very deep and wide.
0:05:56 > 0:05:58It was like something out of a horror movie.
0:05:58 > 0:06:01Literally, it was just a trail of disaster.
0:06:01 > 0:06:03Poor little Bethany had caught her face on the edge
0:06:03 > 0:06:08of the fake wristband, causing an inch-long cut in her cheek.
0:06:08 > 0:06:10Bethany was in hysterics when she came in to me
0:06:10 > 0:06:13and I was in a massive state of shock from looking at it.
0:06:13 > 0:06:16You know, my beautiful daughter had a massive gash on her face,
0:06:16 > 0:06:18which frightened me.
0:06:19 > 0:06:21When Nathan examined the wristband,
0:06:21 > 0:06:23he discovered that just like Stuart's,
0:06:23 > 0:06:26it contained a cut up tape measure.
0:06:26 > 0:06:28This is the one that actually did the damage itself.
0:06:28 > 0:06:30This is absolutely razor-sharp.
0:06:30 > 0:06:33It actually entered Bethany's face
0:06:33 > 0:06:35to just below where my thumb is now.
0:06:35 > 0:06:38That's how deep it actually went into her face,
0:06:38 > 0:06:41which is nearly 10mm.
0:06:41 > 0:06:43Bethany was rushed to hospital, where the doctors were able
0:06:43 > 0:06:46to stop the bleeding and close the wound.
0:06:46 > 0:06:48But she may be scarred for life.
0:06:48 > 0:06:50It really hurted.
0:06:50 > 0:06:52And how do you feel now?
0:06:52 > 0:06:54- Scared.- It's sad, isn't it?
0:06:54 > 0:06:57You don't like seeing the scar on your face, do you?
0:06:57 > 0:07:00Even after what has happened, Nathan still believes
0:07:00 > 0:07:01they've been very lucky.
0:07:01 > 0:07:04If it had slashed her wrist or caught an artery
0:07:04 > 0:07:08or anything like that, the doctors would have really struggled.
0:07:08 > 0:07:10And certainly within the time it took me
0:07:10 > 0:07:13to take her to my local hospital,
0:07:13 > 0:07:15she would have lost a serious amount of blood.
0:07:17 > 0:07:20But it's not just the occasional slap band or stuffed toy
0:07:20 > 0:07:21slipping through.
0:07:21 > 0:07:24Faking Frozen products is a boom industry.
0:07:24 > 0:07:27Huge container-loads of fake Disney merchandise
0:07:27 > 0:07:29have been secretly arriving at British ports
0:07:29 > 0:07:33and no-one knows how much of it has found its way into people's homes.
0:07:35 > 0:07:38It's Trading Standards' job to try and stop the deluge.
0:07:38 > 0:07:42And in Nottinghamshire, one team has successfully intercepted a huge haul
0:07:42 > 0:07:44of fake Frozen merchandise,
0:07:44 > 0:07:47which was being sold from a shop in their area.
0:07:47 > 0:07:49It was just everywhere and all tat.
0:07:51 > 0:07:54Paul Gretton and Robert Martinez were part of the team
0:07:54 > 0:07:56that seized the toys.
0:07:56 > 0:07:58They're an obvious fake because on the back...
0:07:59 > 0:08:02..you've got the impression of buttons but no actual buttons.
0:08:02 > 0:08:04And there's no screw for the battery compartment as well.
0:08:04 > 0:08:07So, the batteries would be accessible to little kids.
0:08:07 > 0:08:08Delightful little thing(!)
0:08:09 > 0:08:11What's really surprised me -
0:08:11 > 0:08:14and I've been in Trading Standards a long time -
0:08:14 > 0:08:18is the really poor quality of some of this.
0:08:18 > 0:08:19Ooh, the leg's come off.
0:08:19 > 0:08:22This is some of the worst fake stuff I've seen in 30 years.
0:08:22 > 0:08:25It's not robust enough to be given to children.
0:08:25 > 0:08:28It's really, really shockingly poor stuff.
0:08:28 > 0:08:32In total, they've seized over 700 items, including umbrellas,
0:08:32 > 0:08:35wallets, bags, alarm clocks and much more.
0:08:35 > 0:08:36What is a little bit unusual is
0:08:36 > 0:08:40fake product normally sells for less than the market value.
0:08:40 > 0:08:43But the demand is so high for this particular product
0:08:43 > 0:08:45that it's actually selling at market value,
0:08:45 > 0:08:47what the real stuff is selling for.
0:08:48 > 0:08:50As well as being poor quality,
0:08:50 > 0:08:53many of the toys are potentially dangerous.
0:08:53 > 0:08:56Of serious concern are hooded coats
0:08:56 > 0:08:58with chords that could strangle.
0:08:58 > 0:09:00They're really nasty.
0:09:00 > 0:09:02You know, I thought we'd seen the back of this sort of thing,
0:09:02 > 0:09:03I really did.
0:09:03 > 0:09:06The problem with that is, if that gets caught -
0:09:06 > 0:09:08and the classic one is when they're coming down a slide
0:09:08 > 0:09:12in a playground - and pulls, it actually forms a noose.
0:09:12 > 0:09:13And there were deaths.
0:09:13 > 0:09:15Two to three deaths a year before the law was changed on that
0:09:15 > 0:09:17some years ago.
0:09:17 > 0:09:19So, that's the real worry with those.
0:09:19 > 0:09:23Children's coats with drawstrings that pull all the way through
0:09:23 > 0:09:24are now banned in the UK.
0:09:24 > 0:09:26Coats for children under seven
0:09:26 > 0:09:29aren't even allowed to have decorative cords.
0:09:29 > 0:09:31I don't think I'm exaggerating by saying that
0:09:31 > 0:09:33the worst that could happen with some of this product
0:09:33 > 0:09:35is there could be a fatality.
0:09:35 > 0:09:39And Nottinghamshire County Council's Trading Standards aren't alone.
0:09:39 > 0:09:41Enforcement agencies have been seizing goods
0:09:41 > 0:09:44up and down the country.
0:09:44 > 0:09:46At the port of Dover, a lorry-load of fake toys,
0:09:46 > 0:09:50including nearly 500 fake Frozen dolls,
0:09:50 > 0:09:53was impounded in the run-up to Christmas 2014.
0:09:53 > 0:09:58Meanwhile, at Stansted Airport, dolls and accessories worth over £8,000
0:09:58 > 0:10:02were confiscated from shipments arriving from Malaysia and China.
0:10:03 > 0:10:05For the Stodden family,
0:10:05 > 0:10:07their encounter with a fake Frozen toy
0:10:07 > 0:10:10is an experience they're never going to be able to forget.
0:10:10 > 0:10:13I think the difficult thing for ourselves is the childhood years of,
0:10:13 > 0:10:16certainly school photos, are going to be haunted by
0:10:16 > 0:10:19such a horrible scar on such a beautiful girl's face.
0:10:19 > 0:10:20It's...
0:10:20 > 0:10:23It's quite...it's quite emotional, isn't it? Hm?
0:10:32 > 0:10:37When you buy a coat to keep you warm, well, you want it to keep you warm.
0:10:37 > 0:10:41A parka filled with goose down is amongst the very warmest there is -
0:10:41 > 0:10:42as this one should be.
0:10:42 > 0:10:44But it's a fake.
0:10:44 > 0:10:47Buy a real down coat and you'll be toasty.
0:10:47 > 0:10:50Buy a fake, you'll be left out in the cold.
0:10:52 > 0:10:55Down-filled parkas were designed for those working
0:10:55 > 0:10:56in the very coldest conditions.
0:10:56 > 0:11:00But they're now a regular sight on our high streets during winter.
0:11:01 > 0:11:04One brand of down-filled coat is called Canada Goose.
0:11:06 > 0:11:09Kevin Spreekmeester is Chief Marketing Officer.
0:11:09 > 0:11:14Canada Goose is a nearly 60-year-old company
0:11:14 > 0:11:17that manufactures some of the world's best down outerwear.
0:11:18 > 0:11:21The company makes coats for anyone who wants to stay warm -
0:11:21 > 0:11:23from shoppers out and about on a frosty day,
0:11:23 > 0:11:27to rugged outdoor workers in the coldest places on earth.
0:11:27 > 0:11:29We make warm jackets for the city.
0:11:29 > 0:11:32We make warm jackets for athletes and dog mushers
0:11:32 > 0:11:34and researchers in Antarctica.
0:11:34 > 0:11:37For these people, it's a tool of their trade.
0:11:37 > 0:11:41It's equipment. It's necessary. It's a survival piece.
0:11:41 > 0:11:44Of course, you don't have to be an Arctic researcher to wear one
0:11:44 > 0:11:45of these coats.
0:11:45 > 0:11:48In fact, they're now regularly worn as winter outerwear
0:11:48 > 0:11:49in towns and cities.
0:11:50 > 0:11:53But the manufacturers say they're still designed to withstand
0:11:53 > 0:11:55the most extreme temperatures.
0:11:56 > 0:12:00We continually study jackets in cold chambers.
0:12:00 > 0:12:04We continually look for improvements in fabrications and trims.
0:12:04 > 0:12:06It's an ongoing process.
0:12:08 > 0:12:11Of course, the fakers have spotted the chance to profit
0:12:11 > 0:12:13from the company's success.
0:12:13 > 0:12:15They are making coats that look like exact replicas
0:12:15 > 0:12:19of their high-end designs but with none of the technical wizardry.
0:12:20 > 0:12:23And for outdoor workers relying on their gear to protect them
0:12:23 > 0:12:25from the elements, that could have serious consequences.
0:12:27 > 0:12:30As Maya Plass found out.
0:12:30 > 0:12:33- Come here.- Maya is a marine biologist who spends her days
0:12:33 > 0:12:36battling the weather around Britain's coastline.
0:12:36 > 0:12:39I'm often outside so I spend a lot of time
0:12:39 > 0:12:40just exploring the coastline,
0:12:40 > 0:12:43whether it's doing rock pool rambles with children,
0:12:43 > 0:12:47or whether it's diving as well and spending a lot of time on the water.
0:12:48 > 0:12:51After a particularly cold day out on the boat,
0:12:51 > 0:12:54Maya decided it was time to buy a new warm jacket.
0:12:55 > 0:12:58Spotting a French website that had the coats on sale,
0:12:58 > 0:13:01she jumped at the chance to grab a bargain.
0:13:01 > 0:13:03And I knew friends that had had Canada Goose coats
0:13:03 > 0:13:06and completely relied on them, even going on polar expeditions
0:13:06 > 0:13:07and things as well.
0:13:07 > 0:13:10So, I just felt that I couldn't lose the opportunity
0:13:10 > 0:13:13of staying lovely and warm and dry for very cold, wet days
0:13:13 > 0:13:15out on the sea.
0:13:17 > 0:13:21Maya ordered a parka and a gilet, both on sale at a hefty discount.
0:13:22 > 0:13:24But when the coats arrived,
0:13:24 > 0:13:26her hopes of staying warm and dry were dashed.
0:13:27 > 0:13:29As soon as I got them out of the parcel,
0:13:29 > 0:13:32the coat material just didn't feel quality.
0:13:32 > 0:13:34It felt very cheap.
0:13:34 > 0:13:36It felt like it wasn't going to be waterproof
0:13:36 > 0:13:38and I knew that they were fakes.
0:13:40 > 0:13:43The fake parka had none of the top-quality insulating features
0:13:43 > 0:13:45that Maya was expecting.
0:13:45 > 0:13:47You can see from some of the stitching here
0:13:47 > 0:13:49that there's stitches loose.
0:13:49 > 0:13:52That the material's really poor quality and isn't waterproof.
0:13:53 > 0:13:56If I just get some water and just drop it on the top.
0:13:56 > 0:14:01And if it's a really good waterproof coat, the water beads will stay.
0:14:01 > 0:14:02But you can see already by leaving it on there,
0:14:02 > 0:14:04it's completely soaked in.
0:14:04 > 0:14:06There are problems with the fit too.
0:14:06 > 0:14:08Not a very good hood.
0:14:08 > 0:14:10SHE LAUGHS
0:14:10 > 0:14:14Maya kicked herself for having been taken in by the fakers.
0:14:14 > 0:14:17So, when I realised they were fake, I was genuinely really disappointed
0:14:17 > 0:14:19cos I'd wasted my money.
0:14:19 > 0:14:20I also felt a bit of an idiot.
0:14:20 > 0:14:23I thought, "How could I have done something so stupid?"
0:14:23 > 0:14:24But I realise that anyone can do it as well.
0:14:26 > 0:14:28So, if you've bought one online,
0:14:28 > 0:14:31how can you tell if you've been fooled?
0:14:31 > 0:14:33So, what we have here is an authentic jacket.
0:14:33 > 0:14:36And here we have a fake jacket.
0:14:36 > 0:14:39The most obvious thing is the overall appearance
0:14:39 > 0:14:40of the jackets.
0:14:40 > 0:14:46This is our Arctic Tech fabric, which is a polycotton blend.
0:14:46 > 0:14:50It's smart. It's covered in DWR, which is a water resistancy.
0:14:50 > 0:14:53It doesn't crinkle like this one.
0:14:53 > 0:14:56And, if you take a look at this, it just looks mangy.
0:14:56 > 0:14:59It is worn and flimsy.
0:14:59 > 0:15:04On the authentic jacket you have this, what we call our Arctic Disc.
0:15:04 > 0:15:07And you can see the definition in the type.
0:15:07 > 0:15:09There's not a thread out of place.
0:15:09 > 0:15:11If you take a look at the fake jacket,
0:15:11 > 0:15:14this is an ugly mess.
0:15:14 > 0:15:18You can see the stitching on the inside of the label here.
0:15:18 > 0:15:22Weird strands. The Arctic is messed up.
0:15:22 > 0:15:25What's inside the fake coat is even worse.
0:15:25 > 0:15:29These are two glasses filled with down
0:15:29 > 0:15:33and what the counterfeiters put in their fake jackets.
0:15:33 > 0:15:35So, we've had these analysed in a lab.
0:15:35 > 0:15:38This one, the fake down, is 5% down.
0:15:38 > 0:15:41It's 50% feathers
0:15:41 > 0:15:44and the rest, who knows what.
0:15:44 > 0:15:48Dust and dirt and whatever's on the factory floor.
0:15:48 > 0:15:49This is down.
0:15:49 > 0:15:54Down filaments are the underbelly of the bird that go under the feathers.
0:15:54 > 0:15:56That's what keeps you warm.
0:15:56 > 0:16:00The results of owning a fake coat like this could be serious.
0:16:00 > 0:16:05If a consumer was counting on a jacket for their survival
0:16:05 > 0:16:07and they bought a counterfeit jacket,
0:16:07 > 0:16:10that could result in a life-and-death situation.
0:16:12 > 0:16:13It's clear from looking at the fakes
0:16:13 > 0:16:16that the quality isn't up to scratch.
0:16:16 > 0:16:18But how well do they perform in the cold?
0:16:19 > 0:16:20At Loughborough University,
0:16:20 > 0:16:23Professor George Havenith studies how people perform
0:16:23 > 0:16:25in extreme temperatures.
0:16:25 > 0:16:28What we're standing in front of here is our climatic chamber.
0:16:28 > 0:16:29We have two of those.
0:16:29 > 0:16:32And we can simulate most climates of the world in these chambers.
0:16:32 > 0:16:34We can go from -30 to +50.
0:16:34 > 0:16:36Or we can change the humidity as well
0:16:36 > 0:16:38and make it very humid or very dry.
0:16:39 > 0:16:42So, to see how the coats perform on real people,
0:16:42 > 0:16:45Professor Havenith is testing them on two colleagues.
0:16:45 > 0:16:47Alex is wearing the fake jacket.
0:16:47 > 0:16:49Simon's wearing the genuine one.
0:16:49 > 0:16:52At the moment, I'm quite warm but I don't think so in a minute.
0:16:52 > 0:16:54I think I'm going to be quite cold, so...
0:16:54 > 0:16:56OK, let's take you guys in.
0:16:59 > 0:17:03The climatic chamber is cooled to -20 degrees Celsius,
0:17:03 > 0:17:05as cold as the average household freezer.
0:17:06 > 0:17:09Alex and Simon will stay in there for half an hour.
0:17:09 > 0:17:12Just make sure you're as warm as you can be.
0:17:16 > 0:17:18My face is quite cold.
0:17:18 > 0:17:20- Yeah.- I'm not too bad.
0:17:22 > 0:17:23It could be worse.
0:17:23 > 0:17:24You've got the nice jacket.
0:17:26 > 0:17:29So, what we're trying to do here is just to illustrate
0:17:29 > 0:17:31how the jackets work on real people.
0:17:31 > 0:17:33This will show us how people cool down.
0:17:33 > 0:17:36And we would expect to see, with the infrared camera,
0:17:36 > 0:17:38that actually Alex is losing more heat through the jacket.
0:17:38 > 0:17:42So, he would feel colder and we would see more heat on the outside.
0:17:44 > 0:17:47After 30 minutes at -20 degrees,
0:17:47 > 0:17:50the differences between the two coats have become very clear.
0:17:50 > 0:17:51I'm very, very cold now.
0:17:52 > 0:17:54I've had enough.
0:17:54 > 0:17:58After about 15 minutes, my nose hairs started to freeze.
0:17:58 > 0:18:00Right, guys. I think you're cold enough.
0:18:00 > 0:18:03But I do want to take a quick infrared picture.
0:18:03 > 0:18:05Using the thermal imaging camera,
0:18:05 > 0:18:08Professor Havenith takes a photo of Alex and Simon
0:18:08 > 0:18:11to see how much heat is escaping from the coats.
0:18:13 > 0:18:15OK, get your coats off, guys.
0:18:16 > 0:18:18If you look on the left, it's the fake jacket here
0:18:18 > 0:18:21and you see the bright colours showing how much heat
0:18:21 > 0:18:22is coming through.
0:18:22 > 0:18:25Whereas on the right-hand side, the real jacket,
0:18:25 > 0:18:28you see much more darker blue colours.
0:18:28 > 0:18:29So, in contrast of the two,
0:18:29 > 0:18:33there's a lot less insulation in this jacket.
0:18:34 > 0:18:36Professor Havenith's tests have proved
0:18:36 > 0:18:37that when it comes to insulation,
0:18:37 > 0:18:41the fake coat is vastly inferior to the genuine one.
0:18:41 > 0:18:43The insulation of the real jacket is probably a third more
0:18:43 > 0:18:46than the other one, so that's really a substantial difference.
0:18:46 > 0:18:50And if you would go to the Arctic and depend on the jacket
0:18:50 > 0:18:51and you would have bought the fake jacket,
0:18:51 > 0:18:53I think you would be in trouble.
0:18:54 > 0:18:58The existence of fakes is a major cause of concern for the company.
0:18:58 > 0:19:02Most of the fakes are bought on what we call rogue websites.
0:19:02 > 0:19:06So, these are counterfeiters that have taken our images,
0:19:06 > 0:19:11taken our copy and created websites that look identical to ours.
0:19:11 > 0:19:13So, it's very easy to get tricked.
0:19:13 > 0:19:16But if you don't want to get caught out when buying online,
0:19:16 > 0:19:18what can you do?
0:19:18 > 0:19:20Some of the things to look out for are -
0:19:20 > 0:19:23where's the phone number to customer service?
0:19:23 > 0:19:25Where's the e-mail to customer service?
0:19:25 > 0:19:30Sometimes you'll see on a fake site that the pricing is quite low.
0:19:30 > 0:19:33Canada Goose jackets don't often go on sale.
0:19:33 > 0:19:35So, it's rare that you would see that.
0:19:37 > 0:19:40For Maya, it's a relief that she spotted the fake
0:19:40 > 0:19:42before anything serious happened.
0:19:42 > 0:19:45If I was wearing this coat on a day when it was raining,
0:19:45 > 0:19:49when I'd been diving, I could have even got hypothermia
0:19:49 > 0:19:51from the fact that this coat wouldn't keep me warm
0:19:51 > 0:19:52and wouldn't keep me dry.
0:19:52 > 0:19:54So, it's not just the case that I've lost the money,
0:19:54 > 0:19:57it's the case that, actually, it could cause you harm.
0:20:03 > 0:20:06All these letters were sent to large organisations,
0:20:06 > 0:20:09like councils and hospitals,
0:20:09 > 0:20:12informing them that the bank account details of one of their suppliers
0:20:12 > 0:20:14had changed.
0:20:14 > 0:20:16Fairly straightforward, you might think.
0:20:16 > 0:20:20Thousands of letters like these turn up at organisations every year.
0:20:20 > 0:20:23But all these letters are fakes, sent by criminals.
0:20:23 > 0:20:27The new bank account has nothing to do with the legitimate suppliers.
0:20:27 > 0:20:32That means councils, hospitals, big businesses, even charities,
0:20:32 > 0:20:36can unwittingly pay huge sums directly to the fakers.
0:20:36 > 0:20:38And an awful lot of that money... is ours.
0:20:40 > 0:20:45Some large organisations can receive as many as 2,000 letters a year
0:20:45 > 0:20:49from suppliers informing them of a change of bank details.
0:20:49 > 0:20:51So, if a fake letter arrives,
0:20:51 > 0:20:53you have to be pretty switched on to spot it.
0:20:55 > 0:20:58Sharron Evans is finance administrator for the YMCA
0:20:58 > 0:21:02in Cheltenham, which provides housing for homeless people.
0:21:02 > 0:21:05When their existing building became too dated,
0:21:05 > 0:21:08they knocked it down and built a brand-new one.
0:21:08 > 0:21:11The percentage of homeless people was just rising
0:21:11 > 0:21:13and they needed somewhere to go.
0:21:13 > 0:21:17And we felt that, you know, we were in a position at that time
0:21:17 > 0:21:19to be able to offer this.
0:21:21 > 0:21:23After a consultation process,
0:21:23 > 0:21:27the YMCA hired local construction company, Speller Metcalfe,
0:21:27 > 0:21:29to build the new accommodation.
0:21:29 > 0:21:31Andy Metcalfe is Chief Executive.
0:21:31 > 0:21:34The value of the project to us as a construction
0:21:34 > 0:21:37was approximately £3.6 million
0:21:37 > 0:21:41and took about 18 months to complete.
0:21:42 > 0:21:46As the project progressed, the YMCA made regular payments
0:21:46 > 0:21:49to the builders for the work completed so far.
0:21:49 > 0:21:53The next payment due was for £175,000.
0:21:53 > 0:21:55But then Sharron received a letter.
0:21:56 > 0:21:58The letter was from Speller Metcalfe
0:21:58 > 0:22:01telling me that they'd changed their bank account
0:22:01 > 0:22:03and that from this date forward,
0:22:03 > 0:22:08to transfer any monies owed to them to this new bank account.
0:22:08 > 0:22:12The letter had the correct logo and all the right details.
0:22:12 > 0:22:14But something about it wasn't quite right.
0:22:14 > 0:22:18I was suspicious because when I looked at the address,
0:22:18 > 0:22:19there was a H missing.
0:22:19 > 0:22:22Instead of Brockworth, it said "Brockwort".
0:22:22 > 0:22:26I thought I needed to just check with them.
0:22:26 > 0:22:28Sharron contacted the builders
0:22:28 > 0:22:30to ask if they'd changed their bank details.
0:22:31 > 0:22:34They then e-mailed me back and said, no, they hadn't.
0:22:35 > 0:22:37The letter was a fake.
0:22:37 > 0:22:39It wasn't from the builders at all.
0:22:39 > 0:22:41If Sharron hadn't checked,
0:22:41 > 0:22:47she would have paid £175,000 straight into a fraudster's bank account.
0:22:47 > 0:22:49People have had to work and fundraise and everything
0:22:49 > 0:22:50for that money.
0:22:50 > 0:22:55For it just to disappear just like that, it would have been awful.
0:22:55 > 0:23:00And for me to have to tell somebody that I'd lost £175,000...
0:23:02 > 0:23:05Andy Metcalfe is concerned that someone was so easily able to fake
0:23:05 > 0:23:09his company's identity and use it to try and steal money
0:23:09 > 0:23:10from one of his clients.
0:23:10 > 0:23:13It makes you intensely angry that somebody could come...
0:23:14 > 0:23:17..and purport to be Speller Metcalfe.
0:23:17 > 0:23:23That could look to come and take money away from hard-working people.
0:23:24 > 0:23:27What Andy and Sharron experienced was a type of fakery
0:23:27 > 0:23:29known as bank mandate fraud.
0:23:29 > 0:23:33Will Richardson is a forensic accountant for auditors PwC.
0:23:33 > 0:23:36It's something he sees regularly.
0:23:36 > 0:23:38If we look at the last 12 months alone,
0:23:38 > 0:23:41I've probably investigated about ten cases of mandate fraud.
0:23:41 > 0:23:44The sums that have come across my desk of mandate fraud
0:23:44 > 0:23:47are typically £500,000 plus.
0:23:47 > 0:23:50Sometimes into the seven figures, into the millions as well.
0:23:51 > 0:23:55And it's not just charities like the YMCA that are being targeted.
0:23:55 > 0:23:59The fakers are after large payments from all sorts of organisations -
0:23:59 > 0:24:05from private companies to schools, NHS trusts and local councils.
0:24:05 > 0:24:08Like Conwy County Borough Council, in North Wales,
0:24:08 > 0:24:12which recently embarked on a major redevelopment project at Colwyn Bay.
0:24:14 > 0:24:17Mike Halstead is the council's head of audit.
0:24:17 > 0:24:21In 2012, after a succession of storms,
0:24:21 > 0:24:24the sea defence along this promenade was left severely damaged.
0:24:24 > 0:24:28The project itself consisted of two major elements.
0:24:28 > 0:24:32One was the sea defences and one was the building where we are now.
0:24:32 > 0:24:34The whole scheme, when it's finished,
0:24:34 > 0:24:38is expected to cost around about £25 million.
0:24:38 > 0:24:40As the project progressed,
0:24:40 > 0:24:43Conwy Council made regular payments to the building contractor.
0:24:43 > 0:24:48The next sum due was £2.6 million.
0:24:48 > 0:24:50Then, something unusual happened.
0:24:50 > 0:24:55We were phoned by an individual who informed us that the
0:24:55 > 0:24:58main contractor's bank details were changing.
0:24:58 > 0:25:04This was slightly unusual, so we requested the submission of a letter
0:25:04 > 0:25:06to confirm the new bank details.
0:25:07 > 0:25:11But when the letter arrived, staff quickly spotted that it was a fake.
0:25:11 > 0:25:14If the attempt had not been caught in time,
0:25:14 > 0:25:18Conwy Council would have deposited a massive £2.6 million
0:25:18 > 0:25:21of taxpayers' money into the faker's pockets.
0:25:21 > 0:25:24The council would have had to recoup this money in some way,
0:25:24 > 0:25:27which could have impacted on services.
0:25:27 > 0:25:30For example, libraries could have been at risk.
0:25:30 > 0:25:32Leisure centres could have been at risk.
0:25:32 > 0:25:34Jobs could have been at risk.
0:25:35 > 0:25:37And the attempt wasn't a one-off.
0:25:37 > 0:25:41Conwy Council have received several fake bank change letters.
0:25:41 > 0:25:45These letters are all purporting to be from different suppliers
0:25:45 > 0:25:46to the council.
0:25:46 > 0:25:48So, they are people we do do business with.
0:25:48 > 0:25:51But they all have the same layout.
0:25:52 > 0:25:54And interestingly, they all have the same signature,
0:25:54 > 0:25:59which is an immediate warning for us that these are bogus.
0:26:00 > 0:26:03Both the YMCA and Conwy Council were lucky.
0:26:03 > 0:26:06Their eagle-eyed staff members managed to spot the fake letters
0:26:06 > 0:26:08and avert disaster.
0:26:08 > 0:26:11Other organisations haven't been so fortunate.
0:26:12 > 0:26:16Guy's and St Thomas' NHS trust lost £24,000
0:26:16 > 0:26:20after fraudsters sent a fake e-mail asking for a change of bank details.
0:26:21 > 0:26:27The government of Guernsey paid out a massive £2.6 million to fakers
0:26:27 > 0:26:32posing as the contractor working on the revamp of Guernsey Airport.
0:26:32 > 0:26:36And another £2.6 million was lost over a 13-month period
0:26:36 > 0:26:38by the owners of the Port of Felixstowe.
0:26:38 > 0:26:41Again, paid out by mistake to criminals,
0:26:41 > 0:26:44who faked the identity of the Port's fuel supplier.
0:26:45 > 0:26:49And once the money's gone out, it's virtually impossible to get it back.
0:26:49 > 0:26:52As soon as it hits a fraudster's bank account in the UK,
0:26:52 > 0:26:53it's sent out of the UK.
0:26:53 > 0:26:57It's quickly distributed across a number of different accounts
0:26:57 > 0:26:59in different jurisdictions around the world,
0:26:59 > 0:27:01which makes both the tracing of that money
0:27:01 > 0:27:04and the recovery of that money almost impossible.
0:27:04 > 0:27:07But in Felixstowe, they did manage to catch one of the fakers.
0:27:08 > 0:27:1131-year-old Mohammed Fawzul-Rahman of Watford
0:27:11 > 0:27:13was jailed for four years
0:27:13 > 0:27:15after nearly half a million pounds of the Port's money
0:27:15 > 0:27:18was laundered through his bank accounts.
0:27:18 > 0:27:22The Port was able to recover about half the money stolen.
0:27:22 > 0:27:25But around £1 million was never seen again.
0:27:26 > 0:27:27Perhaps unsurprisingly,
0:27:27 > 0:27:30companies who have fallen victim to mandate fraud
0:27:30 > 0:27:32rarely want to talk about it.
0:27:32 > 0:27:35But it's a huge problem for businesses in the UK.
0:27:35 > 0:27:38One of our large UK banks, it's corporate-client based,
0:27:38 > 0:27:44experienced almost £40 million of attempted mandate fraud in 2014.
0:27:45 > 0:27:48Luckily, the attempts made on Conwy Council and the YMCA
0:27:48 > 0:27:51were simple ones and by checking with the contractors,
0:27:51 > 0:27:54they managed to avoid paying thousands of pounds
0:27:54 > 0:27:56into a faker's bank account.
0:27:56 > 0:27:58The worst-case scenario would be
0:27:58 > 0:28:01that the building would not have been completed.
0:28:02 > 0:28:06And that would have meant that all the people that we've helped so far
0:28:06 > 0:28:09since opening, we would not have been able to help.
0:28:15 > 0:28:16That's all from Fake Britain.
0:28:16 > 0:28:18Goodbye.