Battling the Fakers and Profit Takers

Word Count: 1,537 Estimated Read Time: 6 Min.

Protecting your brand is a proactive and continuous process. It requires vigilance, strategic planning, and the right tools to be effective.  But to create an effective Brand Guide that includes a Brand Protection Plan, one must know what to protect against.  Brand protection is not a one-size-fits-all plan.  Each company is selling something different, positioning it in different ways using different venues and strategies to reach different audiences.  In short, there is a plethora of ways that a brand can be compromised, stealthily threatened or even directly attacked.

It’s important to understand the threats, determine which threats apply to a company’s particular brand, products and venues to then gather the tools and craft the strategies to eliminate or arrest threats before they go from possible to probable to active threats.  The key is vigilance and early intervention.  But it starts with understanding.

So what are the threats to a brand and its products/services?  That depends on the brand and what they bring to the marketplace.  Let’s consider all the possible threats, in depth, and examine what successful brands are doing to combat them.  First, here’s a brief review of the top nine threats.

Possible Brand Threats

1. Counterfeiters/Fakers – Counterfeiters replicate, use and sell / make money using aspects of a Brand’s unique intellectual property.  It is not restricted to just physical products like handbags and perfume.  It can also apply to services and brands.
   
   
2. Vast Marketplaces – Vast online platforms serve as unpoliced venues for the unauthorized selling of a product or service that is very similar to an established brand or misleads customers into thinking it is a well-known brand. 
   
   
3. Social Media Impersonation – Fake social media accounts that pretend to be a particular brand and mislead customers, spread false information, and damage trust.
   
   
4. Impersonating Websites – Lookalike websites designed to mimic an official site and deceive customers or steal their information.
   
   
5. Domain Abuse – Unauthorized use or registration of domain names like an established brand and meant to confuse customers and divert traffic. Individuals register domain names with bad-faith intent to profit from an established trademark.
   
   
6. Phishing, Smishing, Vishing and Pretexting Scams – Fraudulent communications – either email, text or call a multi-step, socially-engineered attack  that appears to come from a brand or reputable/known entity and aims to trick customers into revealing sensitive information or taking action. 
   
   
7. IP Infringement – Unauthorized use of original content — such as images, text, or videos — affects a brand’s uniqueness and misleads customers.
   
   
8. Brand Genericization – Genericization occurs when a brand’s products become indistinguishable from generic alternatives, leading to a loss of brand identity and value.
   
   
9. AI Abuse: The rise of harmful AI-generated content that contains misinformation, deep fakes, and inappropriate content.  This can cause significant damage to brand integrity and reputation. 

Threat 1:  Counterfeiters Fake It to Make It

Today, let’s start by taking a deeper look at Counterfeiting.  Fakes.  Reproductions.  Imitations.  Forgeries.  Knockoffs.  A copy by any other name is still a counterfeit.  When it comes to brands, imitation is NOT the greatest form of flattery.  It is a BIG deal and a GROWING threat. 

Counterfeiting is a significant threat to US brands.  In general, counterfeiters will replicate, use and sell / make money using aspects of a Brand’s unique intellectual property.  It results in substantial losses in revenue and incurs various costs associated with fighting and policing this illegal activity. 

The Big, Bad, Big-Ticket Bogus Problem 

Just how big is the problem?  Nike lost approximately $3.8 billion in revenue in 2018.  And in 2020, US Customs alone seized over 28,000 counterfeit Louis Vuitton products worth over $825,000.  That doesn’t account for the masses of products that arrived in shipping containers or traveled across borders on planes and trucks undetected. While Louis Vuitton is estimated to lose about $1 billion annually and was named the most frequently counterfeited brand in the United States in a June 2025 report, the fashion industry, as a whole, lost over $50 billion in 2020 in potential sales due to counterfeit merchandise. 

But this is not just a fashion industry problem.  The tech industry is struggling with this problem as well.  Apple estimates it loses billions of dollars annually.  With its iPhones, Apple Watches, and iPads, Apple faces a large counterfeit market. Dyson, particularly with its Airwrap, is also a frequent target. Gaming consoles like Nintendo Switch and Xbox are also commonly duplicated. 

Other frequently targeted industries include beauty products like Foreo, Charlotte Tilbury and Olaplex, and luxury goods like watches, particularly Rolex and Patek Philippe. Even high-end olive oil and even some food products also see counterfeiting. This is an equal opportunity threat. And the problem is snowballing.  This year alone, counterfeit and pirated goods are expected to cost US businesses over $200 billion annually, according to a report by the Office of the U.S. Intellectual Property Enforcement Coordinator.  And overall global trade in counterfeit and pirated goods is projected to reach $4.2 trillion by 2025.  A report by the Organization for Economic Cooperation and Development (OECD), an international forum, comprised of 38 member countries, focused on the economic and social well-being of people globally, indicates that “The trade of fake merchandise has slowly risen over the last few years and now accounts for 3.3% of global trade.”

Fakes Cost Brands More Than Revenue

But the cost extends far beyond lost revenue.  It damages brands, costing them consumer trust, especially when consumers unknowingly purchase fakes. Over three-quarters of consumers consider brand important when shopping online. Two-thirds of those who have been ripped off have lost trust in the brand, and 22% said the experience spoiled their perception of the brand.

In turn, imitated brands must hire legal teams and investigators to track down counterfeit operations and pursue legal action.  This must spend money on special packaging, holograms, and digital tracking to prevent fake products.  They must recall products if counterfeit goods become mixed with authentic ones.  And they must handle increased customer complaints and warranty claims from buyers who unknowingly purchased fake products.  Combined, that equals a lot of money. 

Beyond Manufactured Product Phonies

Companies that don’t manufacture a product may think they don’t have to worry about counterfeiting.  That, however, is an incorrect assumption.  Counterfeiters might copy a company name, logo, icon, colors, fonts, slogans, tag lines, mottos, voice, campaigns, domain names, social media efforts or content, ads, blogs, podcasts, articles, music, branded merchandise, branded services, or company trade secrets.  It doesn’t just apply to purses, watches and perfumes, although top brands of those products are often imitated.

The problem doesn’t stop at fancy luxury goods.  There is also a rise in other fake products ranging from electronics to pharmaceuticals and from auto parts to toys.  And, many other items that aren’t “manufactured” can be counterfeited including money, documents, art, collectibles, food, beverages, services and digital assets. 

Indeed, the most common form of counterfeiting involves creating fake banknotes and coins to mimic genuine currency.  This practice is illegal in most countries and can have severe penalties.  Fraudulent documents, such as passports, driver’s licenses, diplomas, and birth certificates, can be created to deceive others for various purposes, including identity theft or gaining access to restricted areas. Fake art and collectibles is another giant target of dupes.  This includes creating fake paintings, sculptures, and other artworks and presenting them as authentic pieces by renowned artists. Fake collectibles, like antique items or designer china, are also frequently counterfeited. Art forgery is a serious issue that can impact artists, buyers, and the integrity of the art world.

And, if it seems that fakes only impact expensive items, consider that counterfeit food and beverages are also rampant.  They can range from mislabeled organic products to alcohol containing dangerous chemicals like methanol.  These fraudulent products can pose serious health risks to consumers.  Also, while less common than physical goods, services can also be counterfeited. For example, some individuals or organizations may offer fraudulent certifications or degrees, implying a level of expertise or qualification that isn’t genuinely held. 

Counterfeiting has even spread into the digital realm.  The rise of NFTs has led to new forms of counterfeiting, including fake digital artwork or collections sold as originals. NFT fraud can also involve plagiarism and copyright infringement, where art is stolen and minted as NFTs without the creator’s permission.  Even the very industry used to target counterfeiting has been replicated.  Counterfeiters often attempt to replicate security features such as holograms, barcodes, or watermarks created to make their products appear genuine. 

Besides the financial losses for businesses and individuals, damage to brand reputation and consumer trust and potential health and safety risks for consumers, there is one more big problem generated by fakes and the fake makers.  Funds from counterfeits are often used to fund other illegal activities, including organized crime and terrorism.  Now that makes a serious brand threat into a global threat.

Given the size of the problem and its apparent escalation, how are brands supposed to protect against counterfeits without going broke?  The sheer enormity of the problem portends doom.  Thankfully, all is not lost.  There are strategies for how to deal with forgeries and protect the brand.  Next week, we’ll examine actionable strategies in the fight to protect the brand.  Stay tuned!

Quote of the Week
“Challenging unfairly subsidized products, fighting counterfeit goods and intellectual property theft and holding countries accountable for an unfair currency regime will help American companies remain competitive.”
Virginia Foxx, US Representative, NC-R

© 2025, Keren Peters-Atkinson. All rights reserved.