Counterfeiting is emerging as a paramount threat to organisations in today’s hichly-connected digital world. As technology advances, counterfeiters are leveraging sophisticated methods that include the use of artificial intelligence to replicate products with alarming precision. This not only undermines the integrity of genuine innovations but also poses significant risks to industries ranging from pharmaceuticals to electronics. Addressing this challenge is crucial to safeguarding innovation and ensuring consumer trust in global markets says Padmakumar Nair, CEO and Co-Founder of Ennoventure, Inc. As per a report by ASPA and CRISIL, in India alone, 25-30 % of products sold are spurious with counterfeiting. Padmakumar Nair spoke to Tech Achieve Media about why this unnerving trend increases the need for anti-counterfeit solutions to battle the grappling issue, ensuring brand protection and product authencity.
TAM: Can you walk us through the most significant advancements in counterfeiting techniques in recent years? What are some of the most common products or industries being targeted by counterfeiters today?
Padmakumar Nair: In recent years, counterfeiters have become astonishingly sophisticated, using advanced printing technologies, digital forgeries, and even AI to replicate products and packaging with startling accuracy. These advancements make it more difficult to distinguish between genuine and fake products. The use of 3D printing and digital holograms, which enable counterfeiters to produce incredibly detailed replicas, is one of the most noteworthy methods. Likewise, the growth of the dark web has made it easier for counterfeiters to distribute their products since it gives them a relatively anonymous way to access a global market. Additionally, phony identities and documents that are nearly identical to authentic ones are being created using AI and machine learning.
Counterfeiting is not limited to specific kinds of products but can affect various industries and regions. However, certain categories are more prone to counterfeiting due to high value or demand. Pharmaceuticals and luxury products are indeed among the most commonly counterfeited goods due to their profitability and the potential risks associated with using counterfeit items. Besides, the electronics and automotive industries also experience significant counterfeiting with counterfeiters replicating parts and components of electronics and automobiles.
TAM: Can you share some examples of particularly sophisticated counterfeiting operations that have been uncovered recently?
Padmakumar Nair: The threat to businesses is greater than ever as counterfeiters continue to use increasingly complex strategies. Recently, one of the instances of pharmaceutical counterfeiting in India is an extremely clever counterfeiting scheme that demonstrates the changing strategies used by counterfeiters and the significance of cutting-edge defenses.
Pharmaceutical Counterfeiting in India (2023): Indian officials busted a large-scale counterfeit drug network in a major operation that involved the production of counterfeit drugs with holograms and packaging that looked real. The plan was to distribute forged medications through reputable pharmacies by infiltrating the supply chain and using advanced printing technology. This case emphasized the threats that imitation drugs represent to public health and the necessity for strong anti-counterfeiting protocols in the pharmaceutical sector.
Such instances highlight how sophisticated counterfeit operations are becoming, along with the numerous verticals they target. Maintaining trust in global marketplaces and ensuring product authenticity are crucially dependent on remaining one step ahead of counterfeiters through innovative approaches.
TAM: Can you explain how invisible signatures work and what makes them effective against counterfeiting? What are the benefits of using invisible signatures over traditional authentication methods?
Padmakumar Nair: Invisible signatures are sophisticated anti-counterfeiting technology that enhance product authenticity verification. They are integrated during the printing and packaging process using special inks, nanoparticles, or digital watermarks and are coated, or embedded in the product labels. These signatures are invisible to the human eye but identifiable with specific scanners or smartphone apps. They are detectable only with specific tools, such as UV light or digital scanners. These signatures can be unique to specific batches or individual products or brands, making replication extremely difficult for counterfeiters and significantly boosting product security.
Since it requires specialized knowledge and equipment, counterfeiters find it very difficult to replicate the complex technologies needed to create invisible signatures. Being invisible to the unassisted eye they provide an additional layer of security. Because every invisible signature is distinct, it is possible to precisely trace and validate particular products, which significantly helps in discovering and isolating counterfeit goods.
When compared to conventional anti-counterfeiting methods, invisible signatures provide a number of advantages that make them a powerful tool against counterfeiters. They improve security primarily by adding an extra degree of protection and making it harder for counterfeiters to find and copy. Their non-intrusive design guarantees that the look of the items or packaging doesn’t change, protecting the integrity of the brand. Additionally, the authentication procedure is streamlined by using mobile devices which can verify invisible signatures with ease. This rapid and effective verification is especially useful in high-volume settings. The capacity to alter these signatures for every batch of products makes it much harder for counterfeiters to produce counterfeit goods in large quantities.
For added security, invisible signatures can also be easily incorporated with current procedures and other security elements like blockchain technology or QR codes. This combination of features creates a strong, hard-to-crack anti-counterfeiting system.
TAM: How does blockchain technology help prevent counterfeiting and protect brands? Can you share examples of brands that have successfully implemented blockchain to combat counterfeiting?
Padmakumar Nair: Blockchain technology has led to a breakthrough in the never-ending battle against counterfeiting, guaranteeing product authenticity and safeguarding brand integrity. Using this technology, companies provide strong anti-counterfeiting solutions. By utilizing its decentralized and unchangeable database, which permanently records every product movement or transaction, blockchain technology plays a critical role in avoiding fraud. The integrity of data is guaranteed since once it is uploaded to the blockchain, it cannot be changed or erased. End-to-end traceability is made possible by this technology, providing total insight from the manufacturing plant to the end user.
Every product has a record, which enables everyone in the supply chain to confirm its legitimacy. Accountability and transparency are encouraged by the decentralized structure of blockchain, which guarantees that any link in the supply chain can monitor and confirm transactions. Because of this transparency, it is simpler to spot anomalies and verify the legitimacy of the products. Blockchain-based solutions give customers the ability to use a smartphone app or QR code scanner to confirm the legitimacy of products, giving them peace of mind about their authenticity and dependability.
TAM: How are consumers becoming more empowered to combat counterfeiting, and what role do they play in the solution?
Padmakumar Nair: Modern technology and increased awareness efforts enable consumers to play an active role in the battle against counterfeiting. Accessible verification methods let customers quickly confirm a product’s validity before making a purchase, like QR codes and smartphone apps connected to blockchain networks. By lowering the demand for counterfeit goods, this accessibility not only gives customers the power to make educated judgments but also serves to deter counterfeiters. Education campaigns are essential because they inform customers about the dangers of buying fake goods and the value of making reliable purchases. Customers have a critical role in putting an end to the spread of counterfeit goods, protecting their interests, and preserving the integrity of international marketplaces by actively vetting items, raising awareness, endorsing legitimate brands, and reporting instances of counterfeiting.
TAM: How do brands stay ahead of counterfeiters in this ongoing battle, and what investments are they making in technology?
Padmakumar Nair: In the ongoing battle against counterfeiters, brands are staying ahead by continuously innovating and investing in advanced technologies. It’s all about being proactive and staying one step ahead. In order to maintain their competitive edge, we see brands consistently developing new anti-counterfeiting strategies, incorporating hard-to-copy technologies like encrypted QR codes, holographic labels, and RFID tags. In addition to product authentication, these technologies improve supply chain visibility, allowing brands to track and monitor product movements in real-time. Additionally, firms are now able to examine enormous volumes of data and identify patterns suggestive of counterfeit activity thanks to advances in artificial intelligence (AI) and machine learning algorithms. Blockchain technology has changed the game by offering unchangeable records that guarantee authenticity and transparency throughout the supply chain. The Internet of Things (IoT) is a game-changer for brands enabling real-time tracking and instant alerts if something goes off track. Brands protect consumer trust, strengthen their defenses against counterfeiters, and maintain the integrity of their products in a global marketplace by strategically investing in these technologies.
TAM: What are some potential future developments in anti-counterfeiting technology that brands are exploring?
Padmakumar Nair: I closely monitor the latest advancements in anti-counterfeiting technology, which are becoming increasingly sophisticated to outpace counterfeiters. Brands are investigating state-of-the-art developments in anti-counterfeiting technology. The application of nanotechnology to microtagging—the process of creating things with tiny tags or markers embedded—is one potential field. With the use of specialized readers, these invisible tags may be examined for verification, providing a high degree of protection against replication. Another frontier is DNA-based tagging, which involves integrating distinct DNA sequences into product materials to provide an unquestionable way to verify authenticity. Utilizing immersive digital platforms, augmented reality (AR), and virtual reality (VR) are also being used to build interactive experiences for product verification that let customers confirm authenticity. Furthermore, real-time threat prediction and counterfeit pattern detection are becoming more and more feasible due to developments in artificial intelligence and machine learning algorithms. Future advancements in brand innovation have the potential to completely transform the anti-counterfeiting technology market, providing a strong defense against counterfeiters and boosting consumer trust globally.
