A new report reveals the growing sophistication of counterfeit goods, driven by AI tools, and the challenges they pose for consumers and brands alike.
In a groundbreaking report titled “The Counterfeit Buyer Teardown,” market research firm OnePoll and AI company Red Points have highlighted the increasing complexity of the counterfeit goods market, particularly as it incorporates advanced technological tools such as artificial intelligence (AI). This study, conducted in February 2025, outlines a paradigm shift in how counterfeit goods are proliferating in the e-commerce space, demonstrating the urgent need for stakeholders to adapt to new realities in product authenticity.
Laura Urquizu, CEO and President of Red Points, commented on this worrying trend, stating, “As counterfeiters adopt advanced tools like AI, the fight against fakes is becoming more complex and more urgent. We’re now seeing AI shape both the threat and the solution.” The report revealed a staggering 4.3 million instances of online counterfeit infringements in 2024, marking a 15% increase from the previous year.
The findings present several key insights into the evolving landscape of counterfeiting. Firstly, AI has become a crucial enabler for counterfeiters, allowing them to create lifelike imitations of brand listings and social media accounts with unprecedented efficiency. According to the report, the emergence of sophisticated fake websites is projected to surge by 70% in 2025, which marks a departure from traditional cheap knock-offs to a more refined level of deception.
Moreover, data indicates that 28% of online shoppers who purchased counterfeit goods inadvertently sought these items with the aid of AI-driven tools. This shifting consumer sentiment highlights a fundamental change in behaviour, as some consumers now actively pursue counterfeit options in their search for value, blurring the lines between genuine and counterfeit products.
The report also underscores the issue of accidental counterfeiting, noting that one in four luxury counterfeit purchases is unintentional. With realistic pricing, secure payment promises, and the presence of believable yet fake social media accounts, consumers are frequently misled, resulting in damaging consequences for brand loyalty. Alarmingly, a third of shoppers may cease purchasing from a genuine brand following an encounter with a counterfeit product.
The influence of social media is deemed significant, with nearly a third of intentional counterfeit buyers being influenced by social media promotions. This trend demonstrates a growing acceptance of counterfeit goods, particularly among younger consumers who may value affordability or aesthetic similarity over authenticity. The “dupe” culture, where influencers promote cheaper replicas, is gaining traction, suggesting a shift in consumer priorities.
While traditional marketplaces remain a prominent channel for counterfeit purchases, the study reveals a disturbing increase in the role of fake websites and social media as avenues for distributing counterfeit goods. Social media ads linking to infringing sites are seeing enormous growth, highlighting the escalating sophistication and marketing prowess of counterfeiters.
Younger demographics, particularly Millennials and Gen Z, face heightened risks, with a significant percentage reporting experiences with data theft following purchases from fake websites. Their relative online experience may not adequately shield them from deceitful schemes posing as legitimate e-commerce platforms, increasing their exposure to counterfeit goods.
The research thus paints a comprehensive picture of an evolving counterfeit economy significantly influenced by AI. Piotr Stryszowski, Senior Economist at the Organisation for Economic Co-operation and Development (OECD), remarked, “Counterfeiting poses a serious and evolving threat to innovative businesses and consumer safety. Criminals constantly adapt, exploiting new technologies and shifting market trends—particularly in the online environment.” This evolving landscape underscores the necessity for policymakers to gather detailed, up-to-date information to effectively counteract the counterfeit crisis.
The Counterfeit Buyer Teardown suggests that combating the proliferation of counterfeit goods requires collaborative efforts between brands, technology platforms, and regulatory bodies. As AI continues to blur the boundaries between genuine and counterfeit products, fostering trust in the digital marketplace becomes imperative to mitigate these emerging challenges in e-commerce.
