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How Companies Are Leveraging AI to Spot Counterfeit Designer Products

As Ecommerce Grows, Buyers and Sellers Need Assurance That Products Are Real

The market for counterfeit name-brand products is worth about $500 billion worldwide. Sales of knock-off bags, shoes, sunglasses, electronics, and other items make up about 3.3% of world trade.

As ecommerce booms, consumers need assurance that designer products they buy online are real. Companies including Amazon (AMZN), the sneaker reseller GOAT, and the app Entrupy are leveraging artificial intelligence to spot fake products.

These companies have developed algorithms which have analyzed tens of thousands of fake and authentic products. The algorithms can spot details which are sometimes invisible to the human eye in order to validate products. With this technology, companies are helping shoppers and retailers feel comfortable buying and selling designer goods online.

Entrupy and GOAT Provide AI Counterfeit Detection

Entrupy is an app designed to identify 15 luxury handbag brands. The company has several levels of services available. The most basic version prompts a user to take pictures of different parts of the bag, from the stitching to the pores in the leather. The company’s algorithms then use the photos to authenticate the bag or let a user know it is fake. Machine learning allows each photo to help the app improve. Entrupy hopes to design a more automated detection process, and to expand into analyzing electronics, medicine, and more. So far, Entrupy has sold its services to customers in 65 countries. Its clients include Dubai’s department of economic development, eBay (EBAY), and Goodwill.

GOAT, an online sneaker marketplace, also leverages AI to detect counterfeits among its listings. Before shoes from the site are shipped to buyers, they go through one of GOAT’s eight testing centers around the world to make sure they are not counterfeit. AI does some of the verification, though other tests, like checking the smell of the shoes, are still done by humans.

Amazon’s Project Zero

Ecommerce giant Amazon (AMZN) is also using artificial intelligence to detect counterfeit products from third-party sellers on its site. Last year, the company launched Project Zero, a program designed to catch and remove counterfeit brand-name products listed on Amazon. Through the program, brands provide Amazon with logos, trademarks, and other data. Then Amazon’s algorithm compares these authentic images to images of products on its site to detect fakes.

Each of these AI-powered tools for detecting counterfeit products is relatively new. They are becoming better each day, thanks to machine learning.

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