New developments in AI technology could help online retailers protect themselves and customers from counterfeit merchandise.
Amazon is no stranger to fraudsters trying to peddle their wares. The online retail mogul has been working on a defense for years and has continued to invest in machine learning, helping to steer the potential of AI toward safety and research, as reported by The Dallas Express.
The e-commerce giant has established a Counterfeit Crimes Unit (CCU) of former federal prosecutors, law enforcement officers, and data scientists to combat counterfeit activities. To aid this team, Amazon is leveraging AI tools to scan more than 8 billion seller listings every day, according to CBS News Texas. Using machine learning and data collection, they can quickly examine logos and trademarks, enabling them to flag potential counterfeit products.
In October 2021, Amazon’s CCU collaborated with the Prada Group and several other luxury brands to present compelling evidence to Chinese law enforcement authorities that led to the conviction of a counterfeiter who was involved in selling fake luxury products. This joint effort by the CCU and luxury brands was a significant milestone in the fight against counterfeit products, which cause harm to both consumers and legitimate businesses.
“The guilty plea is a significant win for Amazon’s CCU, but more importantly, it’s a win for all of those who share our commitment to tackling the industry-wide issue of counterfeiting,” said Kebharu Smith, director of Amazon’s CCU, per the company’s website.
Still, as AI advances the ability to detect fake products, so does the progression of AI increase the sophistication of counterfeit goods. In November, the U.S. Attorney’s Office for the Southern District of New York released a statement about the largest counterfeit goods bust in U.S. history.
“As alleged, the defendants used a Manhattan storage facility as a distribution center for massive amounts of knock-off designer goods. The seizures announced today consist of merchandise with over a billion dollars in estimated retail value, the largest-ever seizure of counterfeit goods in U.S. history. This is a testament to the commitment of this Office and its law enforcement partners to combat counterfeit trafficking in New York City,” U.S. Attorney Damian Williams said, per a release.
Counterfeiting is a growing problem being addressed nationwide by the government and businesses. Amazon was among the initial seven tech giants that agreed to a voluntary White House AI commitment earlier this year. The agreement stipulates that internal and external security testing of AI systems must be conducted before their release, information about known risks should be shared within and outside of the industry, the public should be allowed to report issues with AI systems that they come across, and content produced by AI must be disclosed.
NPR reported that the six other companies that first signed this agreement were Microsoft, Google, Meta, Anthropic, Inflection, and OpenAI.
