Mike Kessler - "WE CAN'T GUARANTEE 100% THAT THEY ARE GETTING THE REAL DEAL" LAST YEAR, FDA OFFICIALS WARNED PATIENTS THAT COUNTERFEIT SAMPLES OF THE CANCER DRUG NEUPOGEN AND THE GROWTH HORMONE NUTROPIN WERE FOUND ON PHARMACY SHELVES ACROSS THE COUNTRY. 

The World Health Organization now estimates that between 8 and 10 per cent of all prescription drugs  sold in the united states are counterfeit... fakes... that may have no medicinal value or worse ....even harmful additives. 

IN 1996, FLAVINE INTERNATIONAL, IN CLOSTER, NEW JERSEY, ADMITTED TO YEARS OF IMPORTING AS MANY AS NINE COUNTERFEIT DRUGS INTO THE UNITED STATES such as gentamicin, an antibiotic. Hundreds of people had severe reactions, dozens even died because of the fake pharmaceuticals an FDA memo reveals that the agency knew about the importation of the fake drugs but took up to three years to act and stop the shipments. 

Congressman - "FDA knew about this for years....but it resulted in death......" 

In 2000, an FDA administrator told congress, "we literally have no  control over bulk drugs that enter the u.s. these drugs can reach anyone, including the president. 

Mike Kessler -"It's impossible for the consumer to tell whether a pill is real or not." 

Michael G. Kessler of Kessler International - MIKE KESSLER INVESTIGATES CASES OF COUNTERFEIT DRUGS for pharmaceutical companies.  

Mike Kessler - "It's everything from birth control pills to antibiotics and other types of medications, there is nothing sacred anymore". He says you can find bogus prescription drugs in the New York area....like a powerful prescription skin cream we bought over the counter at a beauty supply store on long island...the queens district attorneys office confirmed they seized the same counterfeit drug at stores in queens...the drug was analyzed only to find the main ingredient in the cream was missing. 

Mike Kessler - "We have counterfeit pharmaceuticals in this area, the FDA and New York State have not been very proactive in trying to detect these counterfeit products." 

In trying to track down the source of fakes, the feds have put CHINA, ARGENTINA, COLUMBIA, HUNGARY, AND TAIWAN on a watch list for the production and exportation of counterfeit pharmaceuticals...the pharmaceutical industry says the best way to combat fakes is at the borders. 

Susan Finston – Pharma - THE CUSTOMS SERVICE IS LOOKING AT THIS VERY SERIOUSLY AND WE'RE TRYING TO SUPPORT THOSE EFFORTS. 

One answer to the problem may be in the packaging itself the same company that makes anti-counterfeit devices for credit cards, over the counter pills and even security seals for water bottles is now suggesting holographic designs be used for prescription drugs.... 

Ken Traub-American Banknote Holographics - The pharmaceutical industry needs to reconsider the way they package their product to make it much more difficult to counterfeit.

But Kessler says while authorities try to figure out the best course of action to take on fake drugs, consumers are being put at a real risk.... 

Mike Kessler - The government is really letting it's citizens down when it comes to counterfeit pharmaceuticals.

FDA refused an on-camera interview. But an FDA spokesman told us by phone, he thinks the numbers of counterfeit prescription drugs REPORTEDLY sold here in the U.S. are highly inflated. Ernie Anastos CBS 2.