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BizReport : Internet : May 27, 2009

Brand fraud challenges marketers

A new study from the Chief Marketing Officer Council found that the down economy has led to marketers experiencing an increase in online brand fraud.

by Helen Leggatt

CMO logo.jpgThe global audit of 306 marketers, sponsored by MarkMonitor, found that 29.5% are reporting a greater number of incidents of online brand fraud. The main problems companies are battling include grey market knock-offs, phishing attacks, cyber squatting, email scams, trademark abuse, copyright and patent infringements.

"Sophisticated and savvy brand extortionists and cyber scammers on the Internet are boldly preying on unsuspecting consumers with bogus brand name email/web sites, deals and inducements that entrap, extort and expose consumers to financial loss, identity theft, and viral infection," said Donovan Neale-May, the CMO Council's executive director.

"Marketers have awakened to not just the threat to bottom line business issues posed by trademark trespassing, but also the costs of lost brand value, integrity and consumer trust."

However, just 6% of marketers surveyed had official brand protection departments, and just over a third said they didn't know the business repercussions of brand fraud, found the study, "Protection From Brand Infection". Another 17% outsource brand protection efforts or leave it up to their industry trade organization.

Tags: brand fraud, CMO Council, cyber-squatting, down economy, email scams, grey market, phishing, trademark abuse

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