Fake cigarettes and tobacco are flooding Medway on an unprecedented scale with an undercover operation finding them readily available from a range of unofficial outlets.

KM Group reporters joined the investigation team, which bought cheap packets on the black market revealing how they could be easily bought from some taxi drivers, car washes, bookies and pubs.

Other more unlikely sources were greeting cards and pet shops.

The two-day operation in the Rochester and Strood area was overseen by former Scotland Yard detective Will O’Reilly, who recruits undercover officers and Eastern Europeans to weed out the suppliers.

Mr O’Reilly, a former detective chief inspector, said: “This is organised crime, often by gangs historically linked to drugs, firearms and people smuggling. The illicit tobacco trade is less risky and more profitable.”

He also warned of the significant health hazards, saying: “On analysis, all sort of chemicals and high levels of toxins are found. We have also found human faeces, rat droppings and sawdust.

“These people are unscrupulous and don’t think twice about selling to young children. It also impacts in costs to the NHS.”

Mr O’Reilly conducts research for the American tobacco giant Philip Morris International and hands over evidence to council trading standards officers. The decision to take legal action is then in their hands.

His firm estimates that smuggled cigarettes cost the taxpayer up to £3.6 billion in lost revenue a year, which equates to an extra £200 in tax for every family.

The team acts on intelligence from law enforcement officers and the public.

On the Medway visit, they bought contraband from three shops, five times from men selling in pubs, once from a man in a betting shop, four times from staff at car washes, twice from cab offices, once from a man in the street and via the internet.

In Strood, smokers identified Strood Mini Cabs in North Street as a source of illicit tobacco products.

Investigators said the controller called one of the drivers who sold the test buyer a carton of the illicit 777 cigarettes, resembling the gold Benson & Hedges for £38.

The following day, it was alleged that a team member returned to repeat the same deal and was handed over the goods in a plastic bag taken from under the counter.

Co-director of Strood Cabs, Amandip Sandhu was “shocked” when told of the test purchase of illicit tobacco.

He said: “As far as I am concerned Strood Cabs is not involved in the selling of illegal tobacco. I would welcome and would fully co-operate with any investigation whether it be police or customs.

"My drivers are self-employed and if any one of them is found guilty we would dispense with their services.”

From Rochester Car Wash in Corporation Street the undercover team said workers had told them they could supply to order, but had some single packs on site.

The purchasers said they had bought two packs of a well-known premium international brand with Lithuanian health warning for £5 each.

After saying they were prepared to wait, it was reported that two cars arrived about half an hour later with their goods.

Other purchases were made from a customer in a pub and a convenience store, both in Rochester.

Mr O’Reilly said: “This illegal activity fosters criminality in local communities.”.

A Medway Council spokesman said: “The investigator was able to purchase illicit tobacco from 17 locations in Medway, three of which were retail shops. The information provided will be used to inform and plan our enforcement activities.

“Our trading standards team are committed to putting a stop to the sale of illicit tobacco in Medway.”