Fashion Industry Warns of Rising Risk of Fraudulent Websites

February 11, 2025 | WASHINGTON, D.C. The American Apparel & Footwear Association (AAFA) published a discussion white paper to highlight and explain the growing concerns AAFA members and consumers face with the rise of fraudulent websites. 

The paper, The Rising Risk of Fraudulent Websites: Spotlight within the Digital Devalue Chain of Counterfeits, highlights and explains the growing concerns around an interlinking piece of the Digital Devalue Chain of Counterfeits: fraudulent websites.

AAFA calls on government leaders to explore all available solutions to address fraudulent websites and unlink the devalue chain with proactive measures that will reduce risks to consumers, governments, and legitimate brand owners. The white paper offers service providers immediate and identifiable tactics, so they do their part to protect consumers, businesses, and governments.

"As policymakers look at the risks of tech on our young people and national security, they must also look to the risks to business as counterfeiters, fraudsters, and other illegal actors take advantage of consumers seeking low-cost and readily available alternative goods," said AAFA president and CEO Steve Lamar. "This white paper builds on previous awareness efforts around the need for legislation and consumer awareness efforts regarding illicit trade and the type of fraud perpetuated by fake advertisements, dupe influencers, and the entire digital devalue chain of counterfeits. As website fraud continues to expand and grow in both scope and sophistication, it simply cannot be overlooked."

"By flagging current trends and detailing the limitations of the current system, we hope to position concerns for policymakers and elected leaders to help identify long-term solutions to stop counterfeiters and illegal fraudsters," explained Jennifer Hanks, AAFA senior director of brand protection. 

For this paper, AAFA conducted a member survey and spoke with government and industry leaders. AAFA explored pitfalls of the current system and analyzed potential solutions on how to effectively combat fraudulent websites. Additionally, AAFA members contributed to the paper by quantifying the challenges and sharing examples.

AAFA advocates for the protection of intellectual property rights; builds awareness of the dangers of counterfeits to businesses, consumers, workers, and the environment. In addition to the explainer of the broader Digital Devalue Chain of Counterfeits, AAFA delivered a multi-industry letter to President-elect Donald Trump in December 2024 to advocate for attention to matters of intellectual property protections as part of economic decision making and fulfillment of appointed positions.