Counterfeiters targeting social media with fake goods

ABC7 I-Team Investigation

ByChuck Goudie and Ross Weidner WLS logo
Friday, December 19, 2014
Counterfeiters targeting social media with fake goods
The ABC7 I-Team uncovered fakes in your Facebook feed and other social media sites. Criminals are using them to try to con you into buying counterfeit goods.

CHICAGO (WLS) -- The ABC7 I-Team uncovered fakes in your Facebook feed and other social media sites. Criminals are using them to try to con you into buying counterfeit goods.

This holiday season is the most wonderful time of year for the gift racket - criminals targeting shoppers with fake goods. The I-Team investigated an underground network that tries to fool you with fake versions of products you have liked on Facebook or followed on Twitter. In 2014, the partridge in your pear tree may be a pigeon if the gift was bought online.

As the holiday season roars on, there's a new warning about the next frontier for criminals trying to sell you fake goods. Experts say your social media habits may be turning you into a top target for counterfeiters.

"It appears as if that advertisement is an actual post of one of your friends," said Rob Dunkel, 3PM Shield.

Chicagoan Rob Dunkel runs an online anti-counterfeit business that tracks down fakes. His software monitors online sales and identifies potential counterfeit products with a price tracking computer model.

"Twenty to 25 percent below the cost of Amazon and Walmart, that to us is somewhat suspicious," Dunkel said.

From fake Blackhawks jerseys, to Disney "Frozen" dolls, to "Game of Thrones" box sets -- experts say counterfeiters' newest trick is putting ads in your social media feeds based on the real brand pages that you like or follow.

"You can target the consumer based on their behavior," Dunkel said.

This just published social media study by an Italian research team tracked ads on Facebook for luxury brands - like Ray-ban sunglasses and Louis Vuitton bags - and found fakers hiding in news feeds. Instead of sending buyers to legitimate sites -- these slick ads using real brand names and photos - they redirected social media users to Chinese counterfeit sites.

"They are pretty likely to trick some users into buying," said Stefano Zanero, research reviewer.

"Consumers believe they're getting a good deal, in actuality, they're getting a fake," said Justin Gaudio, an attorney.

UGG boots are the hottest searched for item in online Black Friday sales - and a major target for counterfeiters. These Facebook posts advertise big discounts, and use real company logos to sell cheap fakes advertised right in your news feed.

"They can use social media platforms to get these counterfeit goods in front of the consumer. These are sophisticated criminal organizations," said Gary Hartwig, HIS Special Agent-in-Charge.

Homeland Security Investigations teams patrol social media sites looking for counterfeiters. At O'Hare, customs officials tear through potentially fake shipments, but as online sales expand to big marketplaces like Amazon, federal agents admit it's very difficult to know whether what you're buying online is legit.

ABC7's Chuck Goudie asks, "Are you certain that you're getting the real thing on Amazon?"

Hartwig: "You really can't be certain, we work very aggressively with Amazon, with social media sites like Facebook and Twitter to help educate them and actually have them help us identify trends and have them make better law enforcement in the end. But it's consumer beware. The big sites can't ensure you're getting the real product."

Facebook officials say they prohibit fraudulent and misleading ads on their platform and respond to reported violations. Amazon executives say in a statement that they guarantee purchases from third party sellers on their site.

So, here's what you can do: experts recommend only buying from actual company-run websites - and if you find a sale online, contact the manufacturer to make sure the reseller is authorized.

UGG Australia Authenticity check: http://counterfeit.uggaustralia.com/

Facebook's full statement:

"We prohibit fraudulent and misleading ads on our platform, and we respond to requests to reports we receive about violations. To enforce our terms and policies, we have invested significant resources in developing a robust advertising review program that includes both automated and manual review of ads."

Amazon's full statement:

A-to-z Customer Guarantee

"We want you to buy with confidence anytime you make a purchase on the Amazon.com website or use Amazon Payments; that's why we guarantee purchases from third-party sellers when payment is made via the Amazon.com website or when you use Amazon Payments for qualified purchases on third-party websites. The condition of the item you buy and its timely delivery are guaranteed under the Amazon A-to-z Guarantee."

Amazon Anti-Counterfeiting Policy

"Customers trust that they can always buy with confidence on Amazon.com. Products offered for sale on Amazon.com must be authentic. The sale of counterfeit products, including any products that have been illegally replicated, reproduced, or manufactured, is strictly prohibited.


We take product authenticity very seriously. It is each seller's responsibility to source and sell only authentic products. If you sell counterfeit goods, we may immediately suspend or terminate your selling privileges and destroy inventory in our fulfillment centers without reimbursement. In addition, if we determine that a seller account has been used to engage in fraud or other illegal activity, remittances and payments may be withheld or forfeited. The sale of counterfeit goods can also lead to legal action by rights holders and civil and criminal penalties.

We are constantly innovating on behalf of our customers and working with manufacturers, content owners, vendors, and sellers to improve the ways we detect and prevent counterfeit products from reaching our marketplace. We work hard on this issue every day because we know that our customers trust that they are buying authentic products when they shop on Amazon.com. This is why we stand behind the products sold on our site with our A-to-z Guarantee. We also encourage anyone who has a product authenticity concern to notify us, and we will investigate it thoroughly and take any appropriate actions."