Fraudulent Advertising Online
Fraudulent advertising is rapidly emerging as a new risk to consumers shopping online, where millions of consumers are exposed to thousands of fraudulent advertisements taking them to thousands of illegitimate e-commerce websites that defraud and/or sell counterfeit products and deceitful services.
A new report from Transnational Alliance to Combat Illicit Trade (TRACIT) and the American Apparel & Footwear Association (AAFA) shows that 70 major international brands were targeted by fraudulent advertisements on Instagram and Facebook since 2017, some of which receive up to a quarter of a million views before they are detected.
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.
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WHAT ARE THE DANGERS?