Fraudsters Use Shameless Tactics to Rip off Luxury Brands
Social media has become an oasis for selling cheap knockoffs of luxury products, and a lack of regulation makes it difficult to put an end to illegal trade through online channels.
A new trend in online channels is to use social media applications such as Instagram to market fake goods, and then use direct messaging apps, such as WeChat, to sell the products. Fraudsters comment on, copy or even hijack authentic accounts in order to redirect traffic to their own sales points. On the one hand, they are extremely skilled and can fool even the most experienced consumer, and on the other, they are quick to pack up and leave and try again the next day when they do get caught.
In fact, luxury brands currently receive innumerable comments on their social media accounts that are considered a threat to their brand. A study carried out by BrandBastion found that approximately 2% of all Instagram comments received by the 12 luxury brands surveyed contained links to counterfeit sellers. Although many new measures are being taken to stop fraudsters, these are mostly reactive instead of proactive, and authorities are stuck in a constant cat-and-mouse chase.
Yellow Brand Protection monitors online channels for brand abuse and can identify repeat offenders through its clever data clustering technology to try and knock them down for good. Contact us to learn more about how online channels are used to infringe brands and how you can put an end to it.
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