Fueled by a lack of awareness of the risks posed by counterfeit goods and the cost‑of‑living crisis, counterfeiting remains a significant challenge for companies and brand protection experts in Europe. This is highlighted in the current Serious And Organised Crime Threat Assessment (SOCTA) report of the European Union. This comprehensive study by Europol expects intellectual property crime, including trade in counterfeit products, to remain a lucrative business.
The study also sees an increasing shift in the production of counterfeit goods into the EU as a worrying trend. While counterfeits are typically still manufactured outside the bloc, seemingly legitimate production facilities within Europe would also be used by counterfeiting networks. Recent investigations, for example into counterfeit pesticides and car parts, have reportedly shown that illegal production networks with advanced equipment are active within the EU too.
Another key aspect is the use of new technologies by counterfeiters. According to the SOCTA report, these include online marketplaces and distribution platforms, as well as social media, which are used to market and distribute counterfeit goods. Social commerce, i.e. the integration of e‑commerce into social media, could further drive this development. In the past, platforms such as Instagram, Facebook, and TikTok have already been criticized as distribution channels for counterfeit products, as have influencers who promote fake goods in highly visible ways (dupe influencers).
According to the study, there are new developments resulting from counterfeiters’ increasing use of innovative technologies. The report mentions 3D printing and artificial intelligence (AI) in particular. Greater use of such methods would enable counterfeiters to produce highly accurate imitations with a low risk of human error. And this would also allow them to increasingly automate the production of counterfeit goods.
The study also points out how criminal networks take advantage of legit business structures. According to that, counterfeiting networks use legitimate companies to hide their activities and launder their illegal profits. The study showcases an example from Greece, where a counterfeiting syndicate is said to have sold over 364,000 parcels with fake luxury goods. The counterfeiters are said to have generated over 18 million euros in illegal profits, which they laundered through other companies owned by the network. The network also apparently owned two courier services, which it used to conceal the flows of money and goods.
With the SOCTA study, Europol provides a detailed analysis of the threats posed by serious and organized crime in the European Union, based on information from law enforcement agencies. With its findings on counterfeiting, the study also highlights the need to respond to brand protection challenges with innovative measures.
