While generative AI transforms how people shop, it is also quietly powering a counterfeit crisis now seemingly spiralling out of control. A new report from Red Points and OnePoll reveals that AI is no longer just helping consumers find the best deals. Instead, it is helping consumers to find fakes.
As an example of the threat:
“Counterfeiting poses a serious and evolving threat to innovative businesses and consumer safety,” notes Piotr Stryszowski, Senior Economist at the Organization for Economic Co-operation and Development (OECD). “Criminals constantly adapt, exploiting new technologies and shifting market trends—particularly in the online environment. To effectively counter this threat, policymakers need detailed, up-to-date information. This study makes an important contribution to our understanding of how counterfeiters operate and how consumers behave online.”
From influencer-driven “dupe culture” to hyper-realistic fake storefronts, the study exposes a booming underground economy that has been ‘supercharged’ by technology. With 28 percent of counterfeit buyers now using AI tools to seek out knockoffs, and fraudulent social media ads spiking 179 percent in just one year, the findings deliver a wake-up call for brands, regulators, and shoppers alike.
The resultant report – “Counterfeit Buyer Teardown” – underscores the new reality: counterfeiting is no longer confined to shady sellers or easily spotted scams. Instead, it is embedded in the very technologies shaping modern commerce.
The five key revelations from the study are:
AI is the New Enabler of Counterfeiting – A Two-Sided Threat
The Counterfeiters’ Edge: AI is dramatically lowering the barrier to entry for bad actors. They can now mimic brand listings, and impersonate social media accounts with unprecedented ease and speed. They can also effortlessly create professional-looking fake websites—a situation that, according to Red Points’ data, is projected to surge 70% in 2025.This isn’t just about cheap knock-offs anymore; it’s about sophisticated deception at scale.
The Consumers’ Assistant: 28% of online shoppers who bought fake goods used AI tools to find them. This is not a fringe behavior; it’s a growing trend, especially among Gen X, suggesting consumers are actively leveraging AI in their pursuit of cheaper alternatives. This fundamentally shifts the narrative – it’s not just about being tricked; some are actively seeking fakes with AI’s help.
Accidental Counterfeiting is a Major Problem – Trust Signals are Being Hijacked
1 in 4 luxury counterfeit purchases are unintentional. This shatters the perception that buyers knowingly seek out high-end fakes. Realistic pricing, secure payment promises, and active (but fake) social media presence are successfully deceiving consumers. AI-generated legitimacy cues are becoming indistinguishable from the real deal.
Brands are Paying the Price for These Mistakes: A staggering one in three shoppers stop buying from the genuine brand after an accidental counterfeit experience. This highlights the significant damage to brand loyalty and future sales, even when the brand isn’t directly selling the fake. High-trust categories like luxury and toys are particularly vulnerable.
The “Dupe Economy” is Real and Influencer-Driven
Nearly a third (31%) of intentional counterfeit buyers were swayed by influencer promotions. Social media is driving the demand for “dupes” – budget-friendly replicas. Authenticity is taking a backseat to price and perceived identical appearance, especially among younger demographics.
Marketplaces Remain Key, But Social Media and Fake Websites are Surging
Marketplaces (both US and China-based) are still the primary channels for counterfeit purchases. However, fake websites (accounting for 34% of unintentional purchases) and social media are rapidly gaining ground as sophisticated avenues for distribution, amplified by AI’s ability to create convincing facades. Social media ads redirecting to infringing websites saw a 179% year-over-year growth. This highlights the increasing sophistication of counterfeiters in leveraging advertising platforms to drive traffic to their fake storefronts.
Younger Generations are More Vulnerable in Key Categories
Millennials are significantly more likely to have their personal data stolen after purchasing from fake websites (44% vs. 34% average). This suggests a higher susceptibility to sophisticated phishing scams disguised as legitimate e-commerce sites.
In addition, Gen Z and Millennials are 2-4 times more likely to accidentally purchase counterfeit luxury goods and toys compared to Baby Boomers. Their online savviness might be a double-edged sword, making them more exposed to deceptive listings.
What to make of these trends? As AI continues to blur the lines between real and fake, the pressure is on for brands, platforms, and policymakers to respond with equal speed and sophistication.
Moreover, combating this growing threat will require more than just consumer awareness—it demands collaboration, innovation, and a commitment to restoring trust in the digital marketplace in order to prevent the counterfeit economy becoming the new normal. Hence, Red Points’ survey explains why this rapidly evolving trend is both a technological and ethical crisis for the digital marketplace.
