Fakes are not Fashionable

A BBB Study of the Epidemic of Counterfeit Goods Sold Online

An in-depth investigative study by Better Business Bureau (BBB) finds fraudulent consumer goods are ubiquitous, difficult to tell apart from the legitimate products they are counterfeiting, and stem from a large network of organized criminals and credit card processing mechanisms that are willing to support them.

Research shows that eight in 10 Americans shop online, and the dominance of online retail means nearly anything can be bought online. However, nearly anything available online can be counterfeited, and research also shows that one in four people have bought something online that turned out to be counterfeit.

The investigative study – “Fakes Are Not Fashionable: A BBB Study of the Epidemic of Counterfeit Goods Sold Online” – looks at the prevalence of counterfeit consumer goods and the criminal systems that circulate them. The risk of encountering counterfeit goods can affect any online shopper. From brand-name sunglasses to handbags, BBB’s report found that any shippable item with a reputation for quality and sizable markup is a candidate for counterfeiting. 

According to BBB’s report, 88% of counterfeit goods come from China and Hong Kong, with their smuggling and their online sale via fraudulent websites. In fact, Customs agents seized $1.2 billion in counterfeit shipments in fiscal 2017.

How to avoid buying counterfeit goods online:

● Research the website and/or company: Make sure the website belongs to a legitimate and trustworthy business before sharing financial information. Visit bbb.org to research companies and/or websites. 

● Use a credit card: When shopping online, use a credit card instead of a debit card, as they can provide more protection in case of fraud. 

What to do if you believe you have unwittingly purchased counterfeit goods:

● Ask for a refund: Victims who don’t receive anything when buying online with their credit card, or who receive goods that are counterfeit or not as described, should call the customer service number on the back of their card and request a refund – but call quickly as you have about a two-week window to report the incident. 

● Report counterfeit goods: Contact your BBB or the FBI Internet Fraud Complaint Center to help authorities stop these types of scams. 

For more information and resources, visit bbb.org/robocall or contact your BBB in Southern Arizona at 520-888-6161.