By Cheryl Miller, From The Recorder

SACRAMENTO – Mexico-based criminal organizations, infamous for their violent drug trafficking, are adding sales of counterfeited movies, music and software to their dark repertoires, according to a report released Thursday by California Attorney General Kamala Harris.

La Familia Michoacana was potentially earning more than $2 million a day in 2009 by selling fake copies of Microsoft Office and Xbox video games, the report said. The black-marketing La Familia and another criminal organization, Los Zetas, brazenly stamp their own logos on the counterfeit CDs and DVDs they produce and distribute, the attorney general’s office said.

The report, Gangs Beyond Borders: California and the Fight Against Transnational Organized Crime, declared high-tech crimes, including digital piracy, hacking and fraud, an “emerging pillar” of transnational criminal activity targeting the Golden State. California suffers more computer system hacks, malware infections, cybercrime-related losses and identity theft than any other state in the U.S., the report concluded.

“Given the importance of the music, television, and film industries in California, the economic damage [from] Internet-enabled digital piracy is disproportionately severe,” the report said. “While estimates of exact losses vary greatly, there is little doubt that over the years digital piracy has robbed creative industries based in California of hundreds of millions of dollars in revenue and jobs.”

The report, which also addresses transnational drug and human trafficking and money laundering, was released as the Legislature is considering a number of bills targeting tech-related crime. One bill, still in the early drafting stages, is expected to require companies to provide more customer-information protections in the wake of several highly publicized data breaches. Another bill would create a cybersecurity commission charged with recommending ways to protect public- and private-sector infrastructure from attacks.

Harris’ office already has an e-crime unit that pursues large-scale identity theft and other tech-related wrongdoing. The report recommended several legislative actions to combat violent and drug-related transnational crime, including a $7.5 million expansion of special operation units to Sacramento, San Francisco, Riverside, Los Angeles and San Diego.

As for high-tech crimes, Harris said authorities should work more with the private sector, which “is often in a better position than government to develop tools and techniques to combat criminal activity.” She also recommended that businesses address lax cybersecurity practices.

Harris and four other states’ attorneys general travel to Mexico City next week to discuss transnational crime with Mexican officials.

PHOTO: Kamala Harris, California Attorney General

Jason Doiy