LP Magazine EU

LP_Web_banner_June_2020.png

Banner-300-250.gif

Attensi.gif

RAS.jpg

Sekura.jpeg

Datascan.png

UK_Banner_ad_5-01.png

TSS_Oct_2020.jpg

WEB AND MOBILE FRAUD

Launch of TRACIT report on fraudulent online advertising

The Transnational Alliance to Combat Illicit Trade (TRACIT), in collaboration with the American Apparel and Footwear Association (AAFA), has published a report detailing the growing incidence of fraudulent advertising and counterfeits on popular social networking platforms.
 
The report, which draws attention to platforms such as Facebook and Instagram and websites including YouTube and Google, shows that seventy major international brands have been targeted by fraudulent advertisements on social platforms, some of which receive up to a quarter of a million views before they are detected.
 
“It’s alarming that people are exposed to fraudulent advertisements for counterfeits while they’re thumbing through their social media accounts,” said TRACIT Director General Jeffrey Hardy.

“The ads are so professional that they easily deceive consumers into thinking they’re getting a great deal. Instead, they’re being diverted to a rogue website that was built specifically to sell and distribute counterfeits – and they’re just not expecting that.”
 
The report investigates and points out that Internet-based platforms for social networking and shopping from home have inherent systemic weaknesses that are exploited by criminals to sell any variety of counterfeit or illegal product with little risk of apprehension. The lack of sufficient policies and procedures to verify an advertiser’s true identity and limited vetting during the onboarding process are identified as the main vulnerabilities that enable fraudulent advertising online.
 
“Consumers risk having their payment details stolen, not receiving goods, or buying poor quality or even dangerous products,” said Mr. Hardy.

“Counterfeiters are notoriously linked to serious organised crime, spending their profits on illicit drugs, money laundering and corruption, depriving governments, businesses and societies of hundreds of billions of dollars in taxes, sales and jobs.”
 
TRACIT, which is aligned to the Anti-Counterfeiting Group in the UK, advocate for governments and social platforms to work with brands and law enforcement to do more to protect consumers.

The report includes recommendations for websites and social media platforms to gather and verify information on who is utilising their advertising services, which would improve their ability to proactively identify bad actors and repeat infringers from previously removed accounts. The report also calls for a more rigorous review of an advertisement prior to publication, both algorithmically but also manually where high risk has been flagged.

“The social networking platforms are some of the most popular and most valuable brands in the world,” said Mr. Hardy. “It’s absolutely inconsistent with today’s standards of corporate social responsibility to expose users to such easy forms of fraud.

“Chasing fraud once it’s loose on the Internet is not effective and leaving legitimate companies to clean up the mess is unfair and unreasonable.”
 
Additionally, the report suggests the establishment of an e-business license for advertisers, which would require verification of financial disclosures that can be corroborated by third parties (e.g., bank statements), and physical location information that can be supported by government records or trusted third parties. Such a system could be accompanied by a central registry ideally, managed by a highly secure, disinterested party to maintain the licences.
 
“Licenses are required for virtually every aspect of commercial activity in the physical world, so why not for online advertising?” asked Mr. Hardy. “Advertising has long been regulated by governments to ensure that messages are truthful and do not mislead reasonable consumers and I think it’s the responsibility of today’s legislators to make sure these standards apply to our lives online.”

 

Leave a Reply



(Your email will not be publicly displayed.)

Captcha Code

Click the image to see another captcha.



iFacility CCTV and Alarm Installation