https://www.businesstimes.com.sg/opinion-features/beyond-designer-bag-busts-singapores-counterfeit-problem-bigger-luxury-goods
A fake handbag might hurt your wallet and ego. Fake skincare can contain toxic chemicals that damage your skin. Counterfeit supplements can contain harmful substances. Fake phone chargers have caused house fires.
Beyond designer bag busts: Singapore’s counterfeit problem is bigger than luxury goods
The real threat is whether Singaporean consumers are aware of what they’re buying
WHEN the Singapore Police Force arrested two women in early October 2025 for selling counterfeit luxury goods worth over S$42,000, it marked the latest in a troubling trend. Earlier in August, four individuals were caught with over 1,100 counterfeit items worth S$99,000.
Counterfeit goods are flowing into Singapore at an accelerating rate, primarily through online channels. But here’s what these headlines miss: The luxury handbags and wallets seized in these raids are merely the visible tip of a far more dangerous iceberg.
The misconception of “safe” counterfeits
Most Singaporeans, if they think about counterfeiting at all, picture it as a victimless crime involving designer goods. Buy a fake Gucci bag at a discount? The worst outcome is embarrassment when someone notices. This thinking is dangerously outdated.
The same criminal networks and supply chains that move counterfeit luxury goods also traffic in fake skincare and makeup products, health supplements, pharmaceuticals, electronics and children’s products. The difference? A fake handbag might hurt your wallet and ego. Fake skincare can contain toxic chemicals that damage your skin. Counterfeit supplements can contain harmful substances. Fake phone chargers have caused house fires.
Yet consumers still continue to gamble. Why? The psychology is straightforward, with the thrill of a great deal combined with optimism bias: “It won’t happen to me.” The dangers are often delayed. That cheap charger bought online works fine for weeks before sparking. By the time harm manifests, consumers rarely connect it back to that “bargain” they scored months earlier.
Singapore’s unique vulnerability
Many Singaporeans operate under a false sense of security. We rarely see counterfeit goods sold openly in retail shops here, so we assume the problem doesn’t affect us. This complacency makes us vulnerable.
Many Singaporeans make frequent trips to neighbouring countries for shopping, and purchase items from international e-commerce platforms with deliveries from all over the world. Each of these channels represents an entry point for counterfeit goods. Even experienced shoppers will struggle to distinguish genuine from fake products since they are often highly similar.
The allowance of parallel imports, where genuine branded goods are imported and sold without the brand owner’s consent, only adds to the confusion in Singapore. While it is legal here, these “grey market” goods often lack local warranty coverage and make it even harder for consumers to differentiate between legitimate products, grey market goods and outright counterfeits. For the average Singaporean consumer who lacks expertise in authentication, this grey area is a minefield.
The business blind spot
The problem extends beyond consumers. Working with brand owners across Asia, I have encountered three dangerous misconceptions among companies: First, the mid-sized brands assume they are “not famous enough” to be targeted. This is backward. Counterfeiters specifically target mid-tier brands because they are profitable and yet have fewer security measures and enforcement resources compared to luxury giants. It is a sweet spot, offering high reward and low risk.
Second, companies dismiss counterfeiting as “just lost sales”. They fail to account for damaged brand reputation when inferior fakes fail, the liability risks when counterfeit products cause harm, and the cost of investigating warranty claims on products they never made. One fake product causing injury can trigger legal action that far exceeds the cost of prevention.
Third, businesses believe anti-counterfeiting measures cost more than potential losses. This is incorrect. The cost of implementing product authentication systems is a fraction of a single product recall, lawsuit or brand damage from viral social media posts about “terrible products” that were actually sophisticated fakes.
Trouble from the inside
Perhaps most alarming is how sophisticated counterfeiters have become. I was once contacted by individuals claiming to be the IT support team for a customer, requesting information about the brand’s new security codes. These criminals weren’t operating surreptitiously from dark corners; they were posing as legitimate business partners, using the same social engineering tactics adopted in phishing scams that Singaporeans have been repeatedly warned about.
Even more disturbing, our technology has occasionally revealed counterfeits being sold through brands’ own authorised distributor networks. In some cases, contract factories were leaking security features of unreleased products to counterfeiters before official implementation. This illustrates insider vulnerabilities within supposedly secure supply chains.
A shared responsibility
The recent wave of arrests demonstrates that Singapore authorities are taking counterfeiting seriously. However, enforcement alone won’t solve this problem.
Consumers must practise due diligence. If a deal seems too good to be true, it probably is. Purchase from authorised retailers and official brand websites. When buying from third-party platforms, do check the seller ratings, reviews, and return policies. For products such as cosmetics, skincare, supplements, electronics and children’s items that can directly affect health or safety when being used, don’t compromise on authenticity for price.
Brand owners must invest in authentication technology and supply chain security. Modern solutions like unique security QR codes, near-field communication chips, and other smartphone verifiable features allow consumers to authenticate a product instantly. These technologies exist and are increasingly affordable. The point is to act before a crisis hits.
Regulators must continue enforcement while also promoting consumer education about the real risks of counterfeiting beyond luxury goods. The message shouldn’t be “don’t buy fakes”, but rather, “counterfeit products can harm you and your family”.
The real cost
The next time you see news reports about counterfeit goods seized in Singapore, understand that those luxury bags represent but a tiny fraction of fake products entering the market. It is a matter of time before the next viral social media post is about someone seriously harmed by a counterfeit product. Singapore should stop hitting the snooze button.
The writer is co-founder and director of business development at Nabcore
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