‘Tis the Season to protect your brand; as the air gets crisp and the festive decorations go up, shoppers and counterfeiters are getting ready for the biggest retail event of the year. Online holiday spending is set to hit a record $241B, (up 8.4% from 2023), making brand counterfeiting a more critical threat than ever. What was once viewed as a manageable risk has now escalated into a full-blown crisis, as more savvy fraudsters exploit the online shopping trends to infiltrate customer channels and siphon away sales, reputation, and hard-earned customer trust.
For brands, the threat of counterfeits during this critical sales period can no longer be ignored. In this article, we'll explore the darker side beneath the festive lights of holiday shopping, uncover the tactics used by modern counterfeiters, and outline essential protection strategies brands must implement to safeguard their business.
The holiday season is literally “payday” for counterfeiters. With nearly 60% of the global population online and the hunt for deals happening at a fast and frenzied rate, fraudsters have more opportunities than ever to deceive unsuspecting shoppers. Whether they are lured by seemingly irresistible discounts, or the rush to secure their bargains, many fall victim to fake websites, counterfeit goods, and phishing scams that can lead to compromised personal information and financial losses. For brands and consumers alike, awareness is key to avoiding these seasonal traps.
The shift to mobile shopping has added to the challenge. Mobile purchases now account for over 70% of online sales, and fraudsters are quick to exploit this trend. Additionally, buy-now-pay-later (BNPL) options, which appeal to consumers seeking more flexible payments, have created a whole set of fresh opportunities for scams. Scammers may impersonate legitimate BNPL services or create fake accounts, tricking shoppers into sharing sensitive data.
Learn more about how to protect your brand these holidays speak to us today.
The true cost of counterfeiting to brands extends far beyond lost revenue. When consumers unknowingly purchase counterfeit goods, 65% of them place the blame on the authentic brand, damaging its reputation and harming customer trust and loyalty. And those damaging reviews and feelings don't just disappear - they can persist online for years. Studies show it takes an average of 2-3 years for a brand to rebuild that trust once it has been eroded, a lengthy process with ongoing financial implications. Put simply, when brands lose the battle against fraudsters, they also lose customers. If that isn’t enough, counterfeit-related issues strain customer service resources, as they must handle complaints, process refunds, and educate consumers on avoiding unauthorized sellers.
Protecting your brand in today’s digital landscape requires robust, proactive measures. Recognized by Frost & Sullivan as a leading provider in this field, BrandShield offers end-to-end protection against online threats like phishing attacks, executive impersonations, counterfeit goods, and trademark infringements. Our platform covers all digital environments, including websites, mobile apps, social media, online marketplaces, and even the dark web. Leveraging advanced pattern recognition, cross-platform detection, and integrated case management tools, BrandShield ensures you stay one step ahead of sophisticated cyber threats.
Educate Your Employees and Customers
Awareness is a powerful defense. Train your employees to spot fraudulent activities and ensure they understand the importance of protecting brand assets. Simultaneously, educate your customers on how to identify genuine products and recognize fake channels. Providing clear reporting options for customers to flag suspicious activity not only strengthens trust but also helps your brand continuously refine its protection strategies.
Take Immediate Action
Speed is critical when addressing brand abuse. Automated takedown tools and real-time alerts enable brands to quickly remove counterfeit listings, phishing sites, and other fraudulent content. For more severe or persistent threats, pursuing legal action can deter repeat offenders and reinforce your brand’s enforcement efforts. A swift, decisive response minimizes potential damage and showcases your commitment to safeguarding your reputation.
The holiday season amplifies the risks brands face as e-commerce evolves and expands. In 2023 alone, the US Customs and Border Protection seized over $21 million worth of counterfeit goods—a stark reminder of the threats lurking in the digital marketplace. Brands that act early and invest in comprehensive protection strategies are better equipped to safeguard their reputation, revenue, and customer trust during this critical sales period.
But protection isn’t just a seasonal priority. Implementing robust, year-round brand protection measures ensures you’re always prepared, allowing you to tackle emerging threats proactively and seamlessly transition into the holiday rush with confidence.
Make brand protection a cornerstone of your strategy—because your reputation is worth it.