I should also mention that when I received the package, the USB drive was inside of Kingston USB drive packaging, which surprised me because they didn't describe it as a Kingston product on the listing page.
I can suppose the rationale for Kingston packaging was that Kingston was the only provider of 512GBs at the time, and its addition was a way to sell the fraud's narrative should any doubt later arise, such as after getting mysteriously corrupted data whenever more than 32GB was used.
I had live chats about the case with different customer service agents over a period of months. However, every time I spoke about the issue, it was like the previous hour-long conversations had never happened. Each time, I had to get the agent up to speed on the situation from the ground up, resending the images of evidence, re-explaining that I would be happy to return the item but only to the police or to Taobao corporate instead of resupplying and becoming the accomplice of a suspected criminal.
As far as I could tell, there was no internal procedure for investigating the possibility of fraud or counterfeit. The customer service agents only ever viewed the case through a general return heuristic. The first and final recommendation was always to "return the product to the seller."
Alibaba has vested interest in removing fake vendors from their platforms. They have a few automated ways to find fake vendors but a large part of the process depends on community help (i.e. users, brand-name companies, etc.)
Taobao is much more lenient than the international facing Aliexpress. However, reporting bad vendors does work & I do believe they incur hefty fees if they wish to return.
One thing I've noticed is that banned & counterfeit sellers often move on to WeChat for sales.
Taobao said I needed to return the product to the seller in order to get a refund. I told them I would send it to Taobao corporate or the police, but under no other circumstances would I ship counterfeit materials through the mail, reinforcing the supplies of the scammer and perpetuating the fraud.
I sent them a disk space audit demonstrating that there was in fact only 32GB on the device, showed them articles showing that there was only one other 512GB USB drive on the market at the time and that it cost well over 10x the amount listed.
I invited them repeatedly to view the product itself, but I only ever got the same standard canned response to return the counterfeit products to the seller.