It’s easy to view counterfeit activity through a purely commercial or intellectual property lens. The reality is that the danger extends far beyond that.
Behind individual infringements can sit complex criminal networks that affect legitimate businesses and all those that depend on them, from consumers to supply chain employees to local economies.
Understanding the wider consequences of counterfeiting gives those working in brand protection a more complete picture of the threat, and why counterfeiting should be considered as more than an isolated IP issue.
This article explores three areas where the wider human impact of counterfeiting is particularly evident:
- Consumer health and safety
- Exploitation and organised crime
- The wider economic impact
These issues are interconnected, and together, they offer a broader perspective on the consequences of the counterfeit economy — and the scale of the challenge facing those working to protect legitimate brands and products.
Consumer health and safety
For consumers themselves, the consequences of counterfeiting can extend far beyond financial loss. Counterfeiters target products that people use, consume, and rely on every day, creating genuine risks to health and safety.
Targeted products can include:
- Beauty and personal care products
- Pharmaceuticals, vitamins, and wellbeing products
- PPE and safety products
- Electronics and appliances
- Automotive parts
- Food and consumables
- Children’s toys, baby bottles, car seats, and other products designed to keep children and babies safe.
The scale of the problem is particularly clear when it comes to pharmaceuticals. In June 2025, Operation Pangea XVII, a global enforcement operation coordinated by INTERPOL, resulted in the seizure of 50.4 million doses of counterfeit and illicit pharmaceuticals across 90 countries, with an estimated value of $65 million. Of the products seized, 93% had not been approved by national health authorities.
The seized products included medicines purporting to treat Parkinson’s disease, anxiety and other mental health conditions, and erectile dysfunction, alongside anabolic steroids, herbal products, and supplements.
David Caunter, Director of Organised and Emerging Crime at INTERPOL, said, “Fake and unapproved medications are a serious risk to public health. They can include dangerous or illegal ingredients potentially resulting in severe illness, or even death.”
And increasingly, counterfeit and illicit pharmaceuticals are reaching consumers through digital marketing channels. Alongside the pharmaceutical seizures, the operation identified approximately 13,000 criminally linked websites and social media channels.
For consumers, the danger is that these channels can make counterfeit products appear legitimate. A buyer may believe they are purchasing a genuine medicine, cosmetic, electrical product or children’s item, without knowing what it contains, how it was manufactured, or whether it has undergone the safety checks required of the genuine product.
Exploitation and organised crime
While it might look like a simple transaction between a seller and a buyer, the reality behind a fraudulent listing can be much more complex. According to the United Nations Office on Drugs and Crime (UNODC), criminal organisations involved in counterfeiting are often involved in other forms of serious crime, including the trafficking of drugs, firearms and people.
Counterfeiters operate outside the legal and regulatory frameworks that legitimate businesses are required to follow, including labour regulations and workplace protections. This leaves workers much more vulnerable to exploitation.
Recent research from the OECD and EUIPO found that economies more exposed to counterfeiting tend to have higher levels of child labour, greater informality, weaker labour-rights protections, and poorer occupational safety outcomes. The research also found qualitative evidence of vulnerable workers, including migrants and trafficked people, being used in counterfeit supply chains.
The research found a particularly strong association between forced labour and the scale of counterfeit trade. A one-percentage-point reduction in forced labour — equivalent to around 276,000 people globally based on ILO estimates — was associated with more than $35 million less counterfeit trade.
The researchers stress that these findings show statistical associations rather than causation. However, they highlight how the conditions that allow counterfeit trade to thrive can also create an environment conducive to exploitation.
In an increasingly connected world, these networks can also operate across borders and adapt quickly when one route is disrupted. Modern digital infrastructure has made it easier for bad actors to establish new websites, domains, and social media accounts, moving between channels to reach international audiences. The result is a counterfeit trade that can operate at a scale and speed that makes the networks behind it increasingly difficult to identify and disrupt.
"Counterfeiting is more than an IP issue. Its impact reaches consumers, workers, legitimate businesses and entire economies — making it a wider human and economic threat that brands cannot afford to ignore."
The wider economic impact
The effects of counterfeiting don’t stop with consumers, workers, or the criminal networks behind the trade. At scale, counterfeit sales can have wider economic consequences, diverting spending away from legitimate businesses and the formal economy.
Legitimate businesses have to absorb the costs of manufacturing, safety standards, taxation, employment, and regulatory compliance. Counterfeiters can avoid many of these costs, allowing them to offer products at prices legitimate businesses cannot realistically compete with. For smaller businesses in particular, losing sales to counterfeit alternatives can put additional pressure on already limited margins, with knock-on effects for employees, suppliers and other businesses within local economies.
The effects can ripple well beyond the businesses directly targeted. A 2026 study published in Research in Economics estimated that counterfeiting reduced EU
economic output by €67.9 billion, and resulted in 1.3 million fewer jobs in 2024 alone. The research modelled how lost legitimate sales spread through wider supply chains, reducing employment and household economic activity.
There can even be consequences for public finances. When sales move from the legitimate economy into illicit markets, governments lose tax revenue that would otherwise contribute to public services and investment.
Why the wider impact matters
Crucially, counterfeit activity is not static, and the networks behind it are increasingly able to operate across borders, move between digital channels, and adapt when one route is disrupted. For consumers, what may appear to be a cheaper or harmless alternative can therefore be connected to a much wider system that puts people at risk, exploits workers, and undermines legitimate businesses and local economies. Understanding these connections is essential to recognising the true human impact of counterfeiting and the scale of the challenge facing those working to combat it.
For brand owners, this means that tackling counterfeiting cannot simply be about removing individual listings. Understanding the connections between sellers, platforms, products and wider networks can help identify where intervention can have the greatest impact.
That’s exactly why, at SnapDragon, we look beyond individual infringements. By identifying patterns, connections, and emerging risks across the online landscape, we help rights holders build a clearer understanding of the threats facing their brands and focus their efforts where they can have the greatest impact.
Read more about how modern counterfeiters operate at scale, or get in touch today via the form below to start exploring where your brand needs protection.
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