Moscow
02 August 2017
Reporter: Barney Dixon

BrandSecurity discovers CPA counterfeit network


Analysts from Russian brand protection company BrandSecurity have discovered a network of more than a hundred websites selling counterfeit smartphones and watches.

The websites, which feature counterfeit versions of Apple, Samsung and Huawei products, use a cost per action (CPA) advertising model, allowing website owners to receive payments for user conversion activities.

BrandSecurity said counterfeiters are actively cooperating with web hosts specialising in the CPA model and that this creates a significant number of problems.

According to BrandSecurity, end users not only risk getting a poor quality product, but also could become victims of theft.

“No one guarantees that the goods are actually received and the payment data may then be transferred to third parties who steal money from accounts,” the brand protection group said, “in addition to direct financial losses, brands in their turn bear a loss of reputation because many users do not understand that they are buying copies of products of well-known companies.”

Ruslan Krivulin, CEO of BrandSecurity, said: “Having learned about the existence of more than a hundred sites, selling counterfeit gadgets of famous brands, we have sent notifications both to the vendors' headquarters and to their Russian representation offices.”

“The rights’ holders should take action to solve the problem themselves. For our part, we recommend our services to actively fight such vendors and sites, which will allow the detected violations to be resolved in a short period of time. This will, in turn, any damage to the reputation and finances of the brands.”

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