Tricks scammers use to pretend their fake products are real : Internet Scambusters #1,108
Fake consumer products, from clothing and shoes to jewelry and medications, not only hurt genuine sellers but could also hurt you.
And counterfeiters are getting better than ever at fooling their victims to the tune of billions of dollars every year.
But in this week's issue, we'll show you the warnings signs that your purchase may not be genuine and what you can do to avoid being scammed.
Let's get started…
Warning Signs Of A Fake Product Scam
Could you spot a fake designer product or brand? Many of us can't. And some of us would rather not even know if it's genuine.
That's why, globally, counterfeits earn billions of dollars for scammers every year, accounting for up to 5% of all global trade.
And they don't just cost consumers and manufacturers a lot of money. Some fakes can kill or cause serious injury.
But you can save your money, your pride, and maybe yourself by knowing how to spot a fake.
The World of Fakes
There are two reasons people buy counterfeit products - either they want the bragging rights of owning a branded product without paying the full price, or they're hoodwinked into thinking they bought the real thing when all they got is a cheap and maybe dangerous knock-off.
That's enough reason for scammers to churn out fake versions of a huge range of products - designer-name fashionwear, antiques and collectibles, pharmaceuticals, cosmetics/fragrances, jewelry/gold, videos, software, sunglasses, gadgets like smart phones and watches, and a whole lot more.
And they're getting better than ever at it, to the point where website Business Insider recently described these products as "superfakes."
And, per CBS News, a Michigan State University survey found nearly seven out of every 10 people polled admitted they were deceived into buying counterfeit products online at least once in a single year.
What Could Go Wrong?
When you buy a fake, you're pouring money into the pockets of disreputable manufacturers and con merchants. They're making big money at your expense. Some websites even openly brag that their products are knock-offs.
Counterfeits generally use cheap materials that don't last. They often use cheap labor, child labor sometimes. Makers ignore safety rules and may use dangerous, sometimes illegal, materials or ingredients. They mislabel contents and skip instructions and warranties.
And it's usually impossible to get your money back.
How To Spot A Fake
The biggest sign that a product is not genuine is its price. If it's way cheaper than the real thing, it's 99% likely a fake.
Other markers that might signal a fraud include:
- You bought it from a street vendor or an unfamiliar website.
- The store (online or off) suddenly disappears.
- It's poor quality and/or doesn't work like it's supposed to.
- It's not correctly labeled.
- The packaging has no contact information.
- There's no warranty.
- It comes from China - a high percentage of all counterfeits do. (Of course, there are plenty of genuine, reputable manufacturers there too!)
Don't Get Duped
Bearing in mind the signs we've listed above, here's how to protect yourself from unknowingly buying a counterfeit product
- Do an online search on the product name or brand along with the word "fake" to pick up news on latest scams and tips for identifying a knock-off.
- Likewise, research the name and reputation of the seller.
- Check the packaging, ideally by comparing it with known genuine versions that you should be able to find online. Packaging quality, colors, spelling, fonts, and logos on counterfeits often differ, even slightly, from the real thing.
- Only buy from a reputable seller - though even then, big online retailers are themselves duped into offering counterfeit products. This has prompted Amazon to set up its own Counterfeit Crimes Unit, removing millions of fakes from its site every year. So, if you can, buy directly from the manufacturer.
- Give crazy low prices the cold shoulder.
- If it's a collectible item, you might like to check out our reports on fakes: Don't Plan on Making Money from Modern Collectibles and The Great Sneakers Scam and Other Sports Memorabilia Tricks. We also wrote about antiques scams: The 7 Most Common Antiques Scams and How to Avoid Them.
- Feel it. Are the weight, fabric, stitching, sturdiness what you'd expect?
- Look for a certificate of authenticity. But watch out: these can be forged too.
- If it's jewelry, get it authenticated and independently valued. Check for hallmarks. Learn online how to check genuineness of gold. For example, if it's magnetic, it's not gold.
- If the item has a barcode, scan it to see if it's genuine. For electronic devices, check if there's a serial number.
- Smell it! Does this smell like leather? Is that fragrance right?
If, on the other hand, you do know you're buying a fake, think twice. Does anyone really care that you appear to be wearing or using a top brand name? Are you supporting child labor? Is it safe? Is it legal? Will it last?
In a "State of the Fake" report from 2022, verification specialists Entrupy also note that re-sale products like fashion handbags, sneakers, and collectibles are the latest scam targets, and younger shoppers are the main victims.
"And since there will never be enough Birkin bags or Air Jordan 1s for everyone who wants them, many in those audiences are far more eager to get their hands on the items they want than they are concerned about authenticity," says Entrupy CEO Vidyuth Srinivasan.
But with used items it's every bit as important to use our tips to reduce the risk of being scammed. In particular, check on the reputation of the seller and carefully review any photos for comparison. Most importantly, be sure that you can return the item if it turns out to be a fake.
This Week's Alerts
No points: Watch out for emails and texts saying you've been awarded points for a recent online purchase. You're offered the opportunity to redeem them - all you have to do is sign on at a fake replica page. Of course, it's just another phishing attack. Don't use links to sign on anywhere; just go to the genuine site and check for points there.
Streaming TV: Another phishing scam currently making the rounds comes in the form of a fake message supposedly from TV streaming service providers like Hulu and Netflix. The message warns your subscription is about to expire but you can extend it for free. Once again, you're directed via a link to a bogus sign-on page where your subscription details are stolen.
That's it for today -- we hope you enjoy your week!