As the demand for resale grows, new Artificial Intelligence technology is being developed to catch counterfeit products before they reach unsuspecting customers. 

The Wall Street Journal reports that digital algorithms and machine-learning tools—such as those used by Amazon and Goodwill—are being put to work to study tens of thousands of bags, shoes, and other items from every angle. Over time, the AI technology learns how to identify real versus fake products. 

One such technology can be found in use by a startup called Entrupy. As of August 2020, it has the ability to check 15 designer brands, from Gucci to Chanel. 

To use Entrupy, consignment stores purchase their custom camera with a high-quality lens that pops directly into a smart device, like an iPhone or iPad. The app takes the store clerk through the process of taking photos of various parts of the product. The AI checks hundreds of features on the product to determine whether or not it is counterfeit. According to Entrupy’s co-founder, the technology has an accuracy rate of 99.99%. 

The process of discerning fake from real products is time-consuming and costly, but this has not stopped companies from fighting the multi-billion dollar industry of counterfeiting.

An online sneaker marketplace called GOAT uses AI scanning technology paired with human authenticators to detect fakes. After a seller on the platform accepts a buyer’s bid, they ship the pair of shoes to a GOAT center, where the aforementioned procedure takes place. If the shoes are deemed real, they continue on to the buyer. 

Other companies like Amazon and Goodwill use similar processes, and strictly forbid the sale of counterfeit products. They have invested substantial money into protecting their customers from fraudulent sales.

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