Four Ways Counterfeit Electronics Damage Revenue and Reputation: Reputation and Brand Erosion

In this final blog post in our series, we’ll share our thinking about how the sheer volume of counterfeit parts can negatively impact the reputation of electronics brands.

When a buyer knowingly acquires a fake, they likely have a reasonable expectation for sub-par performance. But buyers that unwittingly purchase counterfeit products, and then experience poor quality or performance, may never even know that they bought a counterfeit. This not only damages customer loyalty, it may put other equipment and systems at great risk.

Needless to say, this negatively impacts brand perception and the potential for future purchases. For years, electronic parts and components brands have tried to make it difficult to create copies of popular parts. Still, counterfeiters always seem to find a way. A different approach that has proven to work better at combating fakes is to strip the profitability out of the fraud model.

One global manufacturer experienced serious brand confidence issues when their products appeared to fail. Upon further investigation, counterfeit parts were discovered. Multiple physical security packaging efforts were tried with little or no lasting impact. Numerous counterfeit parts still contaminated the supply chain.

Solution: Item-level Product Authentication

But when the company applied Verify Brand serialization and item-level product authentication to both consumers and supply chain partners, counterfeits in the supply chain decreased dramatically.

Giving manufacturers, partners and even end-users a quick and easy way to guarantee authenticity greatly hampers counterfeiters’ abilities to successfully profit from fakes or perpetrate fraudulent claims. Although we’ll never completely eliminate consumer demand for some knock-offs, we can employ strategies that make it much more difficult for others to profit from this business, leading to a significant decrease in counterfeiting efforts.


Manufacturers and brands that deploy Verify Brand systems and products – secure serialization, real-time digital authentication, unique item identifiers and item level product authentication – protect brand equity, maximize ROI and build confidence among consumers and supply chain partners. Why? Because our robust, easily integrated solutions can detect and decreases the number of counterfeit products entering supply chains and the marketplace by enabling manufacturers, consumers and supply chain partners to quickly and easily determine whether a product is authentic or not.


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