New Markets, New Frauds: What the 2025 OLAF Report Tells Us About the Future of Supply Chain Integrity

For companies in the track-and-trace space, the report highlights a critical reality: as soon as one door is closed, another is opened through digital deception and logistical "shapeshifting".

The Surge of the "Global Vape Business"

One of the most alarming trends identified in 2025 is the dramatic surge in the illicit trade of electronic cigarettes. Europe now sees the highest consumption of these products globally, creating a massive incentive for smuggling.

OLAF’s Joint Customs Operation "VAPE" uncovered several sophisticated schemes:

• Mis-declaration at Import: Vapes are legally produced but declared as innocuous goods like towels, toys, or furniture to evade controls.
• The Transit Trap: E-cigarettes enter the EU purportedly in transit to a third country, but are "lost" or swapped during the journey and sold on the black market.
• Counterfeit Production: Raw parts and liquids are imported separately to be assembled in illicit, substandard factories within the EU.

Why Traditional Enforcement is Struggling

The report notes that the sheer volume of global trade makes it impossible for authorities to check every shipment. Fraudsters are now exploiting this by:

• Fragmenting Shipments: Moving away from large sea containers to thousands of small air-express parcels.
• Mixing Consignments: Each parcel contains a mixture of different goods, making detection via traditional inspection extremely difficult.
• Fake Exports: Using legitimate transport routes and existing company names to create "Trojan Horse" paperwork for goods that never actually leave the EU.

The Solution: Closing the Loop with Data

OLAF is currently calling for a "new way of working" that relies on early alerts and direct access to centralized data. The report emphasizes that protecting the EU’s nearly €1 billion in targeted revenue requires joining the dots between logistic operators, customs, and tax authorities.

This is where FractureCode Corporation steps in. Our track-and-trace technology provides the granular, real-time visibility that OLAF identifies as the missing piece of the puzzle. By securing the supply chain at the unit level, we help brands and authorities ensure that "closed doors" stay closed.

Read the Full Report

We encourage all our partners to review the findings of the 2025 OLAF Report to better understand the emerging threats to global trade.

🔗 Read the OLAF Report