
As hundreds of millions of people around the world shop every day from their computers and phones, online commerce has turned into a giant counterfeiting machine.
Consumers are increasingly being warned to be vigilant against the growing threat of counterfeit products, as these imitations are becoming increasingly difficult to identify. A recent study from Michigan State University found that nearly seven in 10 people said they had been tricked into buying counterfeit products online at least once in the past year.
The world's largest online retailer has used artificial intelligence to root out sellers trying to sell counterfeits on its platform. Three years ago, Amazon created an internal counterfeiting crime unit made up of former federal prosecutors, law enforcement and data scientists based around the world to go after counterfeit sellers. The company says it is closely monitoring suspicious online behavior to protect customers.
"What's critical is that our teams of data scientists and our automated tools are sifting through the data day in and day out," said Kebharu Smith, a former federal prosecutor and now director of Amazon's counterfeit crimes unit.
Smith says Amazon is using AI tools to scan over 8 billion listings from sellers every day. Machine learning and data collection allows them to check logos and trademarks to compare them with what brands are offering. It allows them to flag products that may be counterfeit.
This is important because in some cases, people don't even know what they are buying online is fake.
Changing counterfeiting market
Ashly Sands, an intellectual property attorney and head of litigation and anti-counterfeiting at the law firm Epstein Drangel LLP, emphasized the seriousness of the problem during a recent visit to Canal Street in Manhattan, known for its flea market.
“When I started, I think about 12 years ago, we did this all the time. We used to do monthly raids with our customers,” she said. Last month US Homeland Security Investigations and the NYPD announced the seizure of more than $1 billion worth of counterfeit luxury goods here. It was the largest seizure of its kind in US history.
Sands spent most of his time working with major fashion retailers to combat counterfeits sold on the streets and in back alleys. But she says her work has shifted to an explosion of fakes being sold directly to consumers online and through e-commerce platforms.
"It's massive. If you can get a real version of something, an authentic version of something, there's a 99% chance you can get a fake,” Sands said.
It's a booming industry, considered the world's largest illicit trade, with $2 trillion worth of counterfeit products sold to consumers each year, according to the National Crime Prevention Council.
US Customs and Border Protection warns that online shopping has transformed the counterfeit trade into a breeding ground for criminals pushing potentially dangerous counterfeits.
Counterfeit electronics, for example, contribute to over 70 deaths and 350,000 serious injuries in the United States each year, reports the National Crime Prevention Council, highlighting the grim consequences of purchasing fraudulent goods.