Why consumers buy fakes
Interview with Alona Borzhemska, Chief Commercial Officer at Domain Crawler. Prepared for the report produced for Scamadviser
Trade in counterfeit and pirated goods has surged in recent years, representing a significant portion of global trade. According to the OECD and the EU’s Intellectual Property Office, counterfeit goods now account for approximately 3.3% of global trade. The value of these fake goods, based on customs seizure data, exceeds USD 500 billion, or 3% of world trade. In the European Union, counterfeit trade could exceed 7% of imports from non-EU countries. These figures do not account for domestically produced fakes or pirated online products, suggesting the actual numbers are even higher.
We spoke with Alona Borzhemska, Chief Commercial Officer at DomainCrawler, to understand why counterfeit goods are so prevalent and what can be done about it.
What are the current trends in the sale of fake products?
Alona Borzhemska: “The most prominent trend is cross-product fakes. Counterfeiters will slap a logo on any product they think will sell. The traditional supply chain has changed significantly, with online ordering and drop-shipping becoming more common. Websites selling fake goods have become more sophisticated, often utilizing anonymous networks like the dark web. Social media platforms, such as Instagram, Facebook, WhatsApp, and Telegram, play a significant role in these scams.”
How do social media platforms contribute to the rise in counterfeiting?
Alona Borzhemska: “Social media scams now account for 45% of online shopping scam reports. Criminals use these platforms to gather sensitive information and personalize their scams. With the ease of building professional-looking websites and using trusted payment providers, it’s become much harder to distinguish between genuine and fake sites. Cybercriminals exploit these tools to create sites that closely mimic legitimate ones, making detection more difficult.”
Which products are most frequently counterfeited?
Alona Borzhemska: “Footwear is the most commonly counterfeited product, accounting for almost a quarter of seized goods globally. Other popular categories include apparel, accessories, leather goods, perfumes, electronic devices, and watches.”
What global brands are most targeted by counterfeiters?
Alona Borzhemska: “Luxury brands such as Cartier, Rolex, Chanel, and Gucci are frequently counterfeited. In the tech sector, Apple and Samsung are the most commonly copied brands. It’s important to note that counterfeit medications, such as fake versions of Tamiflu, can have severe consequences. Interpol estimates that up to 10% of global medication supply could be counterfeit, a situation exacerbated by the COVID-19 pandemic.”
How can consumers identify fake goods and scams?
Alona Borzhemska: “There are several indicators to watch for. For physical goods, inspect the quality, packaging, and any security features like holograms. Be cautious of suspiciously low prices and check logos and trademarks for discrepancies. For online scams, look out for misspelled URLs, missing contact information, and poor grammar. Using third-party tools, such as those offered by Scamadviser, can also help identify potential fraud.”
Where do most counterfeit products originate?
Alona Borzhemska: “According to the OECD, 80% of counterfeits originate from China. Other major sources include the United Arab Emirates, Turkey, Singapore, Thailand, and India.”
How should brands protect themselves from counterfeiting?
Alona Borzhemska: “Brand protection today requires comprehensive intelligence and proactive measures. Digital brand abuse can occur anywhere online, so it’s crucial to have robust detection capabilities. Agencies like Red Points, Corsearch, and Opsec can assist with identifying infringements and taking legal action. At DomainCrawler, we provide domain data that helps in analyzing and identifying counterfeit networks.”
What does the future hold for anti-counterfeiting and brand protection?
Alona Borzhemska: “Technology will increasingly play a crucial role in enhancing brand protection. E-commerce platforms are becoming more stringent, but counterfeiters will adapt by using private messaging, apps, and email marketing. Organizations will need to invest in dedicated resources and collaborate with coalitions like the International Trademark Association (INTA) to stay ahead.”
To read the full report, visit
Why Do Consumers Buy Fakes? 2022 Survey | ScamAdviser.
For press inquiries please contact
info@domaincrawler.com
About Domain Crawler
Founded in 2021, Domain Crawler combines industry expertise, a global approach, and up-to-date innovative solutions. With one of the most comprehensive and frequently updated databases in the world, Domain Crawler is able to provide enterprises with accurate web data, allowing them to fight cyber fraudsters, prevent brand infringements, conduct comprehensive market research, understand the competition, and enable the best data-driven businesses decisions.
