Global supply chains are growing more complex, online sales are surging, and counterfeiters are adopting increasingly sophisticated methods that threaten consumer safety and brand integrity. Traditional safeguards for combating counterfeit products, such as holograms and serial numbers, are proving to be outdated. The rise of fake goods has created vulnerabilities in the product authentication process and exposed businesses to reputational and financial risks. Counterfeit goods have become a $467 billion global problem, with fake products accounting for 2.3% of global trade.
From electronics and cosmetics to pharmaceuticals and packaged foods, virtually every retail segment is under threat.
- For customers, counterfeit goods mean wasted money and potential harm.
- For retailers, the consequences include revenue loss, erosion of brand equity, and compliance issues.
How can retailers fight back? This article explores how you can implement effective anti-counterfeiting strategies.
combating counterfeit products demands a new playbook
Preventing fake goods from entering the market is becoming increasingly difficult. These trends require coordinated, tech-enabled solutions and stronger international collaboration that effectively addresses the complexity of counterfeiting.
- Fake goods are no longer coming from a few major hubs; they’re now produced closer to where they’re sold, often in free trade zones that are harder to regulate.
- Counterfeits are shipped in small parcels that slip more easily through customs.
- Counterfeiters are quick to adapt, often shifting production and distribution routes quickly in response to enforcement, making them harder to catch.
- A single listing of a counterfeit item on e-commerce platforms and social media marketplaces can spread rapidly, damaging customer trust.
anti-counterfeiting strategies retailers should prioritise
Think of anti-counterfeiting as no longer just a brand protection issue but a business continuity issue. Brands with strong anti-fraud mechanisms report higher customer loyalty and better investor confidence. The ROI of anti-counterfeiting strategies extends far beyond direct revenue protection.
The most effective anti-counterfeiting strategies blend technology, policy, and partnerships. Here’s how to stop counterfeit products from entering and damaging your ecosystem.
product authentication technologies
Technological advancements are giving retailers an edge. Key innovations include:
- QR codes and NFC tags: These allow consumers to scan and verify the authenticity of a product using a smartphone. Popular brands use NFC tags embedded in their products to enable verification.
- Digital watermarking and invisible ink: These make it harder for counterfeiters to replicate packaging or labels without access to proprietary technologies.
- Blockchain: By creating a tamper-proof digital ledger of product origin and ownership, blockchain ensures end-to-end traceability. Major retailers are now piloting blockchain to track goods from production to sale.
- AI-powered image recognition: Artificial intelligence can now identify fake product listings based on subtle visual differences from original products, flagging suspicious activity across digital platforms.
secure supply chain management
Visibility across the supply chain is crucial. Retailers should:
- Audit vendors and third-party suppliers regularly to ensure compliance with authenticity standards.
- Use track-and-trace systems to monitor product movement and detect diversions.
- Partner with logistics providers that offer tamper-evident packaging and GPS-enabled shipping to avoid unauthorised handling.
consumer education and empowerment
Manufacturers can also build trust and crowdsource detection efforts. Empowering customers to verify and report suspicious products creates a powerful first line of defence:
- Provide clear guidance on how to identify authentic products
- Offer digital tools, apps or online portals to allow easy verification
- Respond quickly and transparently to consumer reports of counterfeit incidents
legal enforcement and brand protection teams
An effective anti-counterfeiting program requires a coordinated legal response:
- Collaborate with legal teams to monitor online platforms and file takedown notices.
- Work with law enforcement to prosecute offenders and conduct sting operations when necessary.
- Establish a brand protection unit or partner with external service providers to monitor digital channels and marketplaces.
platform and marketplace collaboration
Retailers must collaborate with digital platforms to implement stronger seller verification and counterfeit detection. Some leading online marketplaces have begun integrating machine learning tools and seller scorecards to flag potentially fraudulent listings.
Retailers can also request platforms to adopt industry-wide policies like the International Anti-Counterfeiting Coalition’s MarketSafe® Program, which fosters collaboration between brands and e-commerce platforms.
what the future holds: Predictive and preventive tools
Counterfeiting will continue to evolve, becoming smarter and harder to detect. But so will the tools to fight it. The next frontier of anti-counterfeiting involves:
- Predictive analytics that anticipate counterfeiting hotspots before incidents occur
- Digital twin technologies that mirror physical products with a unique digital signature
- Machine learning models that continuously learn from past fraud patterns to improve detection
how can Infosys BPM help you in combating counterfeit products?
You don’t need to face the counterfeit crisis alone. With the right blend of technology, strategy, and expertise, it’s possible to build resilient ecosystems that detect, deter, and defend against fake products.
Infosys BPM offers tailored trust and safety services that help businesses mitigate counterfeiting risks across digital and physical channels. From advanced content moderation and risk monitoring to intelligent automation and AI-powered enforcement, Infosys BPM helps retailers build trust at every touchpoint.
