Recalled and counterfeit toys could pose serious threats to online shoppers
seeking the perfect gift this Christmas, according to a new report.
The latest Brandjacking Index study from
MarkMonitor
revealed that recalled toys continue to be available from online auction sites
and "questionable" e-commerce sites.
MarkMonitor also warned that such goods can still be purchased through
business-to-business exchange sites which sell in bulk to online and high-street
retailers.
A further threat is gift card scams which demonstrate an ever-increasing
level of sophistication in persuading consumers to reveal identity information.
Phishing attacks against retail and services brands have jumped 1,100 per
cent since the last quarter, according to the report, and now represent 40 per
cent of all attacks.
"As the holidays approach, buyers should be wary of online scammers and
irresponsible vendors which abuse reputable brands to make a profit," said Irfan
Salim, president and chief executive at MarkMonitor.
"The internet has introduced a boundless, multi-jurisdictional playing field
that regulatory and industry bodies cannot fully control.
"Brand holders are ultimately responsible for protecting the consumers who
trust their brands and their supply chains from fraudulent and questionable
internet practices."
MarkMonitor's Brandjacking Index is an independent quarterly report that
measures the effect of online threats on brands. The company investigates
ongoing trends, and tracks 30 leading brands.
The latest report revealed that 83 per cent of auction listings selling
recalled toys ship from the US, more than all other countries combined. The UK
is the second largest at six per cent.
Furthermore, eight per cent of business-to-business exchange listings for
recalled toys continue to sell the products. MarkMonitor claims that over a
million recalled toys are available on exchange sites on any given day.
Consumers should also be wary of spam offers for retail gift cards which lure
consumers into providing sensitive personal information. Large price discounts
are often indicative of stolen or counterfeit gift cards.
The huge increase in phishing attacks reveals the improved resilience of
these sites thanks to the increasing use of fast-flux networks and the rise of
phishing kits for hire and botnet rentals.
"The toy recall and gift card findings vividly demonstrate the contrast
between how brands are protected in the internet world versus the physical
world," said Frederick Felman, chief marketing officer at MarkMonitor.
"Brand holders need to develop comprehensive and aggressive strategies to
protect consumers who not only trust their names in stores, but in online venues
as well.
"They also need to recognise that the internet has the potential to
contaminate supply chains to bricks-and-mortar vendors. If brand holders do not
move aggressively, they put their customers, reputations and revenues at risk."
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