Anticounterfeiting Committee Publishes Trend Report on Threat of Fraudulent COD Services

The Anticounterfeiting Committee recently published a comprehensive Trend Report highlighting a concerning new development in the world of counterfeiting and online fraud. The report draws attention to how counterfeiters and fraudsters are exploiting cash on delivery (COD) services to distribute fake products to unsuspecting consumers.

COD is a payment method where the recipient pays for goods or services at the time of delivery, rather than in advance via a payment service provider. While COD is popular in jurisdictions with lower credit card penetration or where consumers prefer to see the product before paying, counterfeiters and scammers are exploiting this method to avoid creating a financial trail that could be traced back to them. They leverage the trust and familiarity consumers have in paying upon delivery, making them less suspicious of the product’s authenticity.

This online fraud is known to have been trending for at least 12–15 months, with counterfeiters using paid sponsored advertising to attract consumers to third-party websites offering products for sale exclusively through COD. This new method of distributing counterfeit goods highlights how counterfeiters will find any opportunity to exploit legitimate services like couriers and logistics providers, introducing even more obfuscation to the counterfeit supply chain.

These counterfeit and fraudulent websites often feature well-known luxury and sports brands, power tools, consumer health devices, fashion items, and watches. During research for the report, it was found that some advertisers even use the names or logos of legitimate retailers to lend false legitimacy to their ads.

One of the key findings of the report is that these third-party e-commerce websites have no legitimate connection to the brands or retailers they feature. They often advertise products with improbable discounts, free gifts, and accessories—and may be stealing the intended buyers’ contact information. The industries most impacted by this trend include consumer electronics, health monitoring devices, power tools, machinery, fashion, footwear, watches, and accessories.

The report also highlights the jurisdictions most affected by this trend, including several jurisdictions in Europe and Asia.

The report provides detailed information on the identifiers of the counterfeit COD ads and websites, including the use of specific keywords, emojis, and website indicators. It also outlines the common tactics used by counterfeiters, such as setting up multiple similar websites, hiding contact information, manipulating legitimate delivery services, and offering false or difficult return policies.

The Anticounterfeiting Committee’s Trend Report underscores the increasing sophistication of counterfeit operations that may be pivoting to avoid detection from rights owners and law enforcement and calls on the need for a multistakeholder approach to address this issue.

For more detailed information and examples of infringing ads, please see the full report.

Although every effort has been made to verify the accuracy of this article, readers are urged to check independently on matters of specific concern or interest.

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