Digital processes and the advancement made in the tech world has led to an increased number of businesses looking into preventative measures for fraud and counterfeiting. With higher regulations for businesses to follow and just a moral duty as a business owner it is essential that the wellbeing of customer data and supplier data is protected otherwise, they may face reputational damage and potential legal issues.
Thankfully people have been following these trends to help create new innovations to help businesses avoid issues surrounding fraud to make sure all areas of their business are protected.
In this article, we look at some of the top modern solutions businesses deploy to help in the fight against counterfeiting.
The top solutions
Counterfeiting continues to be on the rise. It is an issue as counterfeit money can imbalance an economy as it essentially can decrease the value of genuine money.
Alongside this there is the distribution of fake goods that have been produced. This element is what affects businesses the most. Faced with these problems, businesses have turned to high tech solutions and online tools to help protect them from any potential threats.
From securing both their finances and data through business checks available and advanced security screenings, businesses are reducing the issue of fraud.
We’ve included some of the top ones below:
1. Secure QR codes, NFC/RFID and digital authentication
There has been a shift away from physical security features like watermarks, scratch-off secret codes and holograms. These have been replaced by connected digital identities like QR codes and NFC/RFID linked to cloud-based counterfeit-data platforms.
Secure QR codes that have been printed on packaging can be scanned by a smartphone and checked by the system to see if there has been duplication of the code or if it’s genuine. There are also NFC or RFID chips which are embedded in products that allow an end-user to tap the product with their smartphone and authenticate an item.
2. Covert anti-counterfeiting features
Some of the smartest businesses out there are embracing covert security features to deter counterfeiters. From embedded cryptographic codes to UV inks, microtext and DNA markers, there are a range of options for companies looking to protect their brand, suppliers and costumes.
There are other advantages to the covert features too, as they don’t interfere with brand aesthetics, are harder to replicate and allow brands to generate data on authentication attempts which can help them to identify problem areas or hotspots for counterfeiting.
3. Layered defence strategies
The most effective anti-counterfeiting strategies available will combine multiple layers of protection. These include both over or visible security features and more covert authentication mechanisms and can include supplements like forensic features (depending on the product or purpose).
By using a layered approach, the cost and complexity for counterfeiters is raised, making their illicit operations less economical or easy.
4. Supply-chain traceability
The most modern solutions out there aren’t just verifying final items. They’re helping trace products throughout the supply chain, with authentication at every stage to help ensure the chain’s integrity.
From manufacturer through to distributor, retailer, then consumer, the entire journey can be traced for even further transparency.
5. Real-time data, analytics and enforcement intelligence
Digital authentication tools generate data. This allows brands to monitor where authenticity checks are happening as well as where counterfeit attempts are being flagged so they can prioritise enforcement action or supply-chain audits as needed.
The importance of investing in solutions
We’ve discussed some of the modern solutions that businesses are using to prevent or reduce instances of counterfeiting. But what about those who don’t?
A big risk is revenue loss, which is one of the first tangible impacts businesses see. Yes, counterfeit products affect legitimate sales, but the financial effect can go deeper. These include everything from increased returns to warranty issues, legal and enforcement costs and more.
The name of your business is everything, so another potential risk is the reputation of your brand. If a fake product fails to perform or is inferior, the brand suffers by association. Should a consumer or user experience fraud or have their personal information compromised, this will also reduce the credibility of the brand. When consumers aren’t sure whether a product is authentic or they feel their personal health or financial safety is in danger, their overall brand-consumer relationships suffer, and loyalty erodes
