AI has shattered the technical and cost barriers for counterfeiters, with fake e-shops and deceptive ads proliferating at record speed
The counterfeit luxury goods market in the United States continues to pose significant challenges. This as U.S. Customs and Border Protection (CBP) reports seizing thousands of shipments annually that violate intellectual property rights, with the total retail value of these counterfeit goods often exceeding $1 billion. Notably, luxury items such as watches, jewelry, handbags, and wallets constitute over 50% of the seized merchandise's retail value, despite representing only 30% of all seizures. In 2020, for instance, CBP seized $435 million worth of counterfeit watches and jewelry, and $283 million worth of counterfeit leather goods. The majority of these counterfeit goods originate from China and Hong Kong, which together accounted for approximately 90% of the total quantity seized in the fiscal year 2024. This persistent influx of counterfeit luxury items underscores the ongoing need for vigilance and enforcement to protect consumers and legitimate businesses.Fueling this illicit activity is technology, with almost a quarter of these transactions now occurring through non-traditional payment channels. The danger extends beyond mere economic loss, infiltrating the realm of health and safety. These converging trends underscore the critical and immediate need for bolstered law enforcement, heightened consumer awareness, and more robust brand defense mechanisms to combat this increasingly intricate and technologically empowered counterfeit ecosystem.A new study has revealed a growing concern in the digital marketplace: artificial intelligence is playing a major role in the rise of counterfeit shopping. The findings are detailed in a comprehensive new report, titledThe Counterfeit Buyer Teardown—th
The report also challenges the stereotype that counterfeits are always easy to spot due to unusually low prices. In reality, fake goods are typically only 31–38% less expensive compared to genuine items. Additionally, not all purchases are made with full awareness—25% of fake luxury purchases happened unintentionally.
Overall, 61% of counterfeit buyers said they did not realize the product was fake until it arrived. These accidental purchases are often influenced by convincing product imagery (57%) and listings that closely mimic legitimate brands (47%). Social media plays a major role, as misleading ads and influencer endorsements drive users to counterfeit sites.
Intentional buyers tend to take a more active role in seeking out fakes. More than half (52%) reported using search engines to find counterfeit products. They are also more likely to shop via desktop (43%) and even voice assistants (18%), though mobile remains the most common purchasing device across all shopper types (43%).
The influence of social media is particularly strong among Millennials (34%) and Gen X (30%), with 31% of shoppers admitting that influencer content played a role in their decision to buy fake items.
In terms of platforms, 50% of all counterfeit goods were purchased through U.S.-based marketplaces, while 43% came from Chinese marketplaces that ship to the U.S. An additional 34% were acquired through fake websites, many of which were discovered via social media ads (39%) or posts and profiles (49%).
Red Points reported that between 2023 and 2024, the number of social media ads redirecting to infringing websites rose by 179%.
“Counterfeiting poses a serious and evolving threat to innovative businesses and consumer safety,” notes Piotr Stryszowski, Senior Economist at the Organization for Economic Co-operation and Development (OECD). “Criminals constantly adapt, exploiting new technologies and shifting market trends—particularly in the online environment. To effectively counter this threat, policymakers need detailed, up-to-date information. This study makes an important contribution to our understanding of how counterfeiters operate and how consumers behave online.”
As AI continues to transform the digital commerce landscape, its dual role as both enabler of counterfeiting and essential tool for combating it presents a pivotal challenge for brands, marketplaces, and consumers alike. Findings revealed in theCounterfeit Buyer Teardownreport make clear that the surge in fake goods isn’t just a passing trend—it’s a rapidly evolving threat driven by sophisticated technology and shifting consumer behavior.
Addressing this crisis will require a coordinated effort across industries to outpace bad actors with equally advanced tools, tighter oversight, and greater consumer education. As the counterfeit economy grows more complex, the fight to protect authenticity in the AI age has never been more urgent.
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Source: https://get.redpoints.com/the-counterfeit-buyer-teardown-2025
