Counterfeiting is a huge concern for consumers, and the problem is getting worse. It’s one thing to buy a fake designer handbag or pen, but another issue altogether when it comes to pharmaceuticals.
 
“Counting the Cost of Counterfeiting,” a report by NetNames, an online brand protection company, puts the global cost of counterfeiting at $1.8 trillion. That would be approximately 2% of global economic output. NetNames reports that the sale of online counterfeit products rose 15.6% globally in 2014.
 
NetNames places the value of counterfeit goods in the US market alone at $225 billion, and the amount of counterfeits for onlien pharmaceuticals at $200 billion globally, which is approximately one-third of the total market. That is a lot of lost tax revenue.
 
The pharmaceutical counterfeiting market is the most dangerous by far, as patients who really need the medicine are getting fake cures or worse. In the retail space, the report cites the five largest markets as watches, handbags, perfume, sunglasses and footwear. The cheaper fake goods hurt the reputation of the brands that are being copied.
 
“Counterfeiters have proven every bit as adaptable and creative as big business, with the internet allowing them to refine approaches, increase reach, and target the lucrative world of online buyers,” said NetNames CEO Gary McIlraith, who co-authored the report.
 
I recently was looking up a flight and mistyped the airline’s name. I was surprised when I saw a similar designed website come up, looking for me to plug in my travel dates. Fortunately, there was a warning that also came up.
 
There are new high-tech ways to combat these crimes. For example, inks with a variety of characteristics can be printed. For example, UV inks are fairly common. Thermochromatic inks are temperature sensitive, while photochromic inks are light sensitive. I have even seen reports of inks containing DNA.
 
As the world leader in inks for currency and government documents such as passports, SICPA has developed state-of-the-art ink technology that it leverages into brand protection as well. Sun Chemical has created, along with Graphic Security Systems Corporation, its Hidden Indicia system, allowing printers to place hidden images on packages.  Sun Chemical also offers infrared (IR) and color shift inks as well.
 
Another solution gaining in popularity is printed electronics and radio frequency identification (RFID). These allow retailers and end users to use readers or even smartphones to verify that products are what they claim to be. We have seen examples of this reaching the stores: clothing, a leading RFID market, and on high-end products like wine.
 
“New technologies will also be critical to the fight against counterfeiting, with RFID, digital authentication and new generic top-level domains (gTLDs) all allowing brands to strengthen their posture against fraudsters,” the report notes.
 
Counterfeiting is not going away. New technologies from ink and printed electronics manufacturers can help reduce this threat.