Scammers are finding ever more inventive and devious ways to con the public. One increasingly popular tactic is to copy websites of popular brands or create fake listings for popular goods.
The issue tends to be exacerbated in the run up to Christmas, with increasing online activity and demand for popular brands and products. In September 2024, Lloyds Bank issued a warning regarding the increasing use of fake websites to scam customers, which it estimated had cost victims £6.6million so far at an average loss per victim of £55¹.
Stopping it happening in the first place is difficult, but the key is to act quickly if you encounter such issues. There are lots of options, but here are our top tips for dealing with copycat scams.
Domain complaint
If it is an imitation website, then you can look to take control of the domain at which it is hosted. The exact process depends on the domain in question, in particular the top-level domain (i.e. the .com etc). The most common is the Uniform Domain- Name Dispute Resolution (UDRP) process.
This only really works if the actual domain name is similar to a sign or trade mark you have rights in. If the domain name itself is different, then you will need to use a different option.
A successful UDRP complaint will, however, usually result in the domain complained of being transferred and out of reach of the scammer utilising it. According to the World Intellectual Property Office, in 2023 82% of UDRP complaints resulted in transfer of the domain to the complainant².
UDRP complaints are (relatively) low cost, particularly compared with traditional litigation. However, it still takes months to complete the process (even if it is unopposed) and we would always suggest taking other steps to mitigate the issue in the meantime. There is also the potential risk of the same scammer obtaining a new domain and re-launching the fraudulent website – resulting in what can be costly and time-consuming game of whack-a-mole.
Takedown
There are various takedown options for both domains and social media pages, where it is just the content, and not domain name itself, that is the issue.
A great number of scams will involve a fraudulent e-commerce website, but traffic is often driven to those sites via social media adverts (in May 2023 Lloyds Bank estimated two thirds of online shopping scams started on Facebook or Instagram³). All major social media platforms have complaints and takedown procedures for these types of issues. They are cheap and user friendly, so businesses can typically do it themselves whilst potentially pursuing other options. Taking down the adverts will help cut off the traffic and minimise the impact of the scam. However, the effectiveness and speed with which these complaints are dealt with varies depending on the social media company in question.
For domains, you can contact the registrar of the domain and use their procedures to request the domain, or at least its content, is taken down. This falls entirely within the discretion and/or power of the registrar, so unlike a UDRP (or similar) decision the effectiveness can vary wildly.
Trade marks
A trade mark is a form of registered intellectual property that protects something (typically a brand name or logo) that identifies goods and/or services as being yours. We would always recommend business look to register their key brand identifiers as trade marks to give additional protection should it be needed.
If a scam is copying your brand sufficiently to be a concern then you would almost certainly have a strong claim for trade mark infringement. There are significant costs to litigation, and if the scammer is in another jurisdiction the additional complexities and enforcement issues mean it is not always an appealing option.
However, a registered trade mark will strengthen your other options. It gives you a strong basis for a UDRP complaint, complaints to social media companies tend to be more effective when backed by a registration, and you can register your brand with companies such as Amazon to get better protections from fraudulent listings. It can also be the basis for issuing cease and desist letters.
Flag to customers about fraudulent imitations
This is a purely practical step, both to protect customers and to help prevent any reputational damage to your business from those who are unfortunately scammed by those imitating your business or products.
Should you be aware of fraudulent advertisements or websites, it is worth flagging this to your customers through social media, your website and/or marketing communications. Alternatively, this can also be done by leaving reviews on the fraudulent advertisement’s website or social media to warn others of their fraudulent content and that they are copying your goods or services.
When doing so, we recommend sticking to the facts such as: it is an imitation, they are not an authorised re-seller, and/or they are not selling your genuine products. If something is substantially true you cannot be liable for defamation, so calling it fraud based on evidence should be safe, but it is best not to give scammers any opportunity to try to fight back or make a further nuisance of themselves.
If you have any concerns about copycat scams, or the steps you can take to protect your business and/or products, contact the Intellectual Property team at Howes Percival.
Contact Stephen Ruse, Senior Associate on 01604 258064 or email stephen.ruse@howespercival.com
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1 ‘https://www.lloydsbankinggroup.com/media/press-releases/2024/lloyds- bank-2024/fake-website-scam-has-cost-victims-over-six-million-says-lloyds- bank.html
2 https://www.wipo.int/amc/en/domains/caseload.html
3 https://www.lloydsbankinggroup.com/media/press-releases/2023/lloyds- banking-group-2023/two-thirds-of-all-online-shopping-scams-now-start-on- facebook-and-instagram.html
