Innovation in Brand Protection
With the total number of websites on the Internet exceeding
205 million in March 2010, counterfeiting is a growing industry, especially
since more valuable items have entered the scene. In fact, the Internet is the
top destination for counterfeit sales. According to the Annual European Anti-Counterfeit
report published recently by PriceMinister, 80% of counterfeit goods were
purchased online in 2008. This situation causes serious downstream crime as
well, as it is not uncommon for counterfeiters to be involved with organized crime
and child labor practices. As a result, innocent third parties like
distributors, retailers, and auction houses can unknowingly become involved in
the risky aspects of the industry.
On the Internet, it is difficult for customers to spot fake
products and it is hard for them to know if the seller is legitimate. To avoid
being victim to counterfeiting, retailers must take extra caution to embed very
specific markings in their products that distinguish fakes from legitimate
originals. Despite elaborate branding measures, labels and markings are still
subject to duplication, only to be spotted as fake by those in the industry
with a sharp eye for detail.
Not only are counterfeit products a challenge for customers
to detect, but retailers often have no secure way of verifying a purchaser’s
true identity. E-commerce transactions are extremely vulnerable to identity
theft because, aside from credit card information, many sites do not take
additional steps to verify the identity of a credit card user. To authenticate
transactions from both the purchaser and seller’s end, companies are using
technology to help eliminate this uncertainty. Some of the technology-based
solutions that help to ensure secure online transactions include: Verisign, RSA,
Authentec, Ensure, and Authentify. Despite the development of new technologies
to verify genuine products and retailers, ways to override these methods are
constantly being created by those that benefit from the counterfeit industry. For
instance, in 2009, UK financial institutions lost 14% more than the previous
year, due to online banking frauds and accounted for the largest industry
segment of total phish attacks, with a 36% growth despite their efforts (UK
Payments Administration – March 2009). In order to offer a completely secure
exchange, companies must implement a product that resists duplication or
misuse.
Authus has been developed as a customer-focused solution
for identifying authentic goods. Created by luxury goods company Richemont to
protect customers of its portfolio of luxury brands, Authus is verification
software that uses two unique ways of confirming the authenticity of both a
buyer and seller. First, “The Smart Seal” is a way to positively and securely
identify a website to a user. The seal is provided by a brand to its authorized
retailers to help customers distinguish between online sellers who are
operating with the brand's permission and those that are unauthorized. The
second method of confirmation is the, “Trusted Content Channel.” This refers to
certified content from brands, credit card issuers, vendors, and endorsers,
which is used to ensure secure transactions for large purchases, online
banking, and transferring personal information such as medical records.
Unfortunately, due to the high value of luxury goods, the
risk for counterfeiting or scams is high as well. Traffic diversion is
estimated to cost online advertisers almost $2 billion while the amount of
business lost to online counterfeiters is expected to top $137 billion in 2009,
according to MarkMonitor. Authus bridges this gap and acts as an active
security agent that, while hardly noticeable to the customer, ensures a secure
and easy process for both the seller and the buyer and notifies the customer if
an unauthorized party has duplicated the seal. Authus will help eliminate the
buying and selling of counterfeit products by helping customers reduce their
risk of unknowingly purchasing a counterfeit product, confirm credit card
companies' purchase protection plans, ensure reliable shipping practices, and
verify retailer warranties. For online retailers, Authus offers them the
ability to distinguish themselves as authorized retailers and build customer
trust and loyalty which leads to long-term customers and increased revenue. By
helping brands direct customers to authorized retailers and alert them of
unauthorized sellers, Authus increases overall customer satisfaction by selling
quality, legitimate products, and increases demand for truly authentic goods.
Alon Ben Joseph, CEO of Ace Jewelers Group headquartered in
Amsterdam, The Netherlands, after installing Authus into his ecommerce site
commented, "The addition of Authus to the Ace Jewelers eBoutique brought
immediate response from our customers who recognized the Authus seal as
bringing an unprecedented level of security, trust and authenticity to their
purchasing with Ace. Authus seems simple, but is actually
an ingenious technology that completely protects both the consumer and
E-tailer by providing an absolutely secure environment for Internet shopping.”
While the internet has become the main platform to
communicate with consumers, reduce cost of sales, acquire new customers and
increase customer retention, brand abuse is now a critical business and cost
issue. Using Authus will bring high returns on investments as it will not only
protect revenues, it will also protect its consumers from fraud and
counterfeiting, which will also increase revenues. By creating a safe
transaction for both buyers and sellers, Authus guarantees a secure experience
for all.
www.authus.com
www.acejewelers.com
www.authenticsfoundation.org