How to Combat Infringements Generated by AI

During the pandemic, the global landscape has undergone a significant shift and became a fertile ground for illicit activities such as counterfeiting and infringement, with fashion and luxury sectors being particularly vulnerable. In the EU alone, the number of counterfeit goods reached a staggering 66 million in 2020.

Recent developments in AI software have also played a crucial role to increase infringing and counterfeiting activities. Generative AI software such as ChatGPT has enabled criminals to elevate their tactics, leading to the creation of more sophisticated applications that inflict significant harm on organizations and their customers.

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Examples of AI-generated Infringement

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Website infringement

In the past, individuals who infringed upon websites would often spend a considerable amount of time trying to imitate legitimate brand websites. However, the progression in technology has accelerated the sale of counterfeit products through numerous AI-generated websites, surpassing the traditional reliance on unauthorized reseller lists on platforms like Amazon or eBay. Consequently, IP and brand protection teams encounter significant challenges in combatting this issue. Even with automatic removal services, brands often find themselves engaged in a never-ending battle, as online monitoring service providers struggle to effectively dismantle multiple counterfeit sites.

Email phishing

Phishers are leveraging AI technology to enhance their writing skills.  They now adeptly imitate the communication patterns of well-known brands, employing similar tones and styles to create a sense of authenticity. With this tactic, they can coerce recipients into making prompt payments or divulge sensitive information such as passwords and personally identifiable information (PII).

Email phishing attempts usually take place using email addresses created with a well-known service provider.  For example, Yahoo, the popular email service provider, was the most targeted brand for phishing attacks in Q4 2022. In this case, cybercriminals tricked Yahoo email users into sharing personal and banking information under the false pretence of transferring prize money to their accounts. The email also cautioned recipients against disclosing their winnings due to potential legal complications. This deceptive tactic highlights the ingenuity of these malicious actors. 

Social profile impersonation

Cybercriminals who specialize in creating deceptive online profiles, particularly on platforms like TikTok or Instagram, have now adopted AI technology to generate product details and images with striking similarities to authentic items. This sophisticated method has the power to lure unsuspecting buyers into divulging personal information or unwittingly purchasing counterfeit goods via private messages. For instance, these bad actors may use AI to create super fake images that mimic luxury products like Chanel handbags, tricking buyers to acquire counterfeit items.

How to combat the infringement and counterfeiting caused by AI-generated applications? 

Blocking activities caused by known offenders

Imagine that you have an e-commerce site with the ability to detect counterfeit listings and identify repeat offenders automatically. This is where the true potential of AI-powered systems comes into play. Such a system can analyze product data, including images and descriptions, to identify patterns linked to fraudulent listings. It swiftly detects suspicious activities and takes proactive measures to block deceptive listings. By leveraging AI, you provide a safer environment to safeguard your brands and your customers.

Prioritizing most critical cases

Through advanced algorithms and machine learning techniques, the AI-powered system can triage and prioritize cases based on their level of severity and potential impact. It swiftly detects high-risk situations, enabling brand protection teams to focus their resources on the most critical cases that require immediate attention.  In fact, PayPal, a leading online payment platform, employs AI algorithms to analyze and monitor millions of transactions in real-time. Through their AI-powered system, they can identify fraudulent activities and prioritize cases that require immediate attention.

Empowering effective collaboration between cross-functional teams and AI

By adopting a collaborative approach with AI, brand protection teams can extend their scope to address challenges arising from data silos and resource shortages. This becomes particularly crucial in the context of remote work or global enterprises, where IP and brand protection teams may lack the conventional structures of communication and support present in office environments. The RealReal, the leading online marketplace for authenticated luxury goods, exemplifies the use of AI to predict counterfeiting likelihood. By assigning “High risk” items to experienced authenticators, they fortify brand protection efforts. With more than ten retail locations in the US, this global enterprise fosters effective collaboration between humans and AI, delivering reliable results in the fight against counterfeiting.

How can we help?

Hubstream is an AI-powered, data management software built for brand protection teams. At Hubstream, we spend a lot of time thinking about how to help investigators understand infringement activities and automate tasks where it makes sense.

Hubstream implements a responsible AI methodology throughout the entire software development life cycle, enabling your organization to foster trust and scale AI with confidence. In addition to offering recommended triage actions to prioritize critical leads, Hubstream employs AI to identify repeat offenders, expedite review processes and provide positive outcomes.

More importantly, Hubstream supports brand protection teams in assisting collaboration seamlessly between humans and AI to combat AI-generated infringements more effectively.  

Interested in learning more?