How Bad Actors Exploit Chatbots for Counterfeiting
Until recently, the only way to receive “humanized” service when shopping online was to contact salespeople or customer service specialists by phone, email or live chat. However, with the advancement of AI technology and the emergence of bots that can simulate human interactions in an increasingly convincing way, chatbots have emerged as a much more efficient and cost-effective customer service solution.
Unfortunately, this technology has also created new avenues for selling counterfeit products online. Today, AI chatbots are widely used to automate fraudulent sales and other criminal activities. The result is that online scams and schemes are getting harder to fight, which is hurting companies and consumers like never before.
The good news? There are several proactive strategies that can protect your brand against this threat. In this article, we’ll explore the role of AI chatbots in scams and share practical tips, and solutions to help you keep your business safe.
The Role of AI Chatbots in Counterfeiting Operations
AI chatbots are programs that use generative artificial intelligence to interact with users in a fluid and intuitive way. It is common to find them on e-commerce websites, banking applications and mobility platforms, where they help to offer more agile service and improve the user experience.
There is no shortage of examples of big brands that use these systems successfully. Bank of America, for example, recently introduced Erica, a generative AI chatbot designed to offer personalized financial guidance to its users. The system has surpassed 2 billion Interactions, helping 42 million clients since launch.
However, the use of AI chatbots has expanded for less desirable purposes. These fraudulent chatbots automate deceptive interactions, mimicking professional services by answering complex product inquiries. They also employ social engineering tactics, crafting personalized conversations to enhance the credibility of criminal operations on social media. By learning from victims’ responses and adjusting their approach, they increase their chances of success. Operating 24/7, these bots can target a vast audience in a fraction of the time.
Threats to Brand Identity and Consumer Trust
One alarming example of AI chatbots enabling counterfeit sales comes from Amazon’s AI assistant, Rufus. As reported by Business Insider, despite being forbidden from answering requests using the word “dupe”, Rufus was found recommending counterfeit versions of popular products when users asked for specific items like “cheaper version of a name-brand product.” These AI-generated suggestions directed shoppers to replica listings, often indistinguishable from genuine products, undermining both consumer trust and brand integrity.
According to a Washington post study, AI-powered chatbots and deepfake technology have been deployed to create convincing fake accounts on social media platforms like Instagram. These accounts mimic luxury brands such as Chanel, Prada and Louis Vuitton, using AI-generated content to promote fake products. A 2024 IC3 PSA also highlighted how these fraudulent accounts often use AI chatbots to mimic legitimate brands and celebrities to promote luxury counterfeit products or non-delivery frauds.
The consequences are devastating. For the consumer (even those who actively look for counterfeits), the dangers associated with consuming pirated products range from financial loss to serious safety and health risks. For companies, the threat can result in serious damage to reputation, loss of consumer trust and, worst of all, significant financial impacts.
Steps Brands Can Take to Fight Back
Despite the challenges, there are several measures that companies can take to protect their brand. Below, we list the main ones and how you can put them into practice.
A. Official Brand-Verified Chatbots
A great starting point is to employ official verified chatbots. Solutions like WhatsApp ‘Business Verified’ offer verification for businesses, making their accounts easily identifiable. The authentication is highlighted by a blue checkmark next to the brand name, conveying confidence to consumers. Nike and H&M are two brands that use this method to keep customers safe.
Another way of leveraging verified chatbots is using the “test chat” concept, which guarantees that only verified chatbots engage with customers. To ensure integrity, security teams can send a controlled “test” message to confirm that the bots are responding correctly. This approach fosters a trustworthy environment where customers can interact confidently, assured they are communicating with the authentic brand.
(Credit: WhatsApp Business)
B. Controlled and Secure Communication Channels
Having secure and reliable ways to communicate is also key to protecting both brands and their customers. Take Apple’s Messages for Business, for example. It offers a safe, encrypted space where trusted brands can safely connect with consumers. By ensuring all communications are authenticated, this system stops scammers from pretending to be legitimate businesses, giving everyone peace of mind and keeping conversations authentic.
(Credit: Apple’s Messages for Business)
C. Bot Detection & Mitigation
Identifying and stopping malicious bots before they cause harm is also essential for protecting a brand’s reputation. That’s where solutions like Kasada’s BotDetection come in. These tools work in real-time to detect and block harmful bots before they can interact with customers.
D. AI-powered Case Management System
Finally, an AI-powered case management system such as Hubstream can integrate chatbot mitigation tools to track and analyze fraudulent activities across multiple channels, such as social media, emails, and phone numbers. By leveraging AI, the system can identify suspicious conversations, flagging cases that impersonate legitimate brands or deceive customers. These insights can be automatically linked to counterfeit cases or fraud reports from other channels, creating a centralized repository of intelligence that law enforcement or brand protection teams can use to take action.
In addition, Hubstream can cross-reference data from various sources to uncover repeat offenders operating across different platforms. For example, if a fraudulent seller who appears on private chat is flagged on a marketplace, the system can match their email, IP address, or phone number with previous reports from other channels, such as phishing emails or fake social media accounts. By connecting these dots, investigators can build a more comprehensive profile of bad actors, enabling faster enforcement actions and reducing the spread of counterfeit goods or scams.
Conclusion
AI chatbots have brought a new level of sophistication to counterfeit scams, threatening brand identity and consumer trust. However, with a proactive approach that combines technology, education, and collaboration, companies can mitigate these risks and become much stronger.
There’s no time to act like right now. By embracing advanced technologies and educating consumers, brands can stay ahead in this new era of digital fraud and protect what’s most valuable: their reputation.