The true cost of counterfeiting: beyond the P&L
Counterfeits erode revenue, but the deeper damage is to brand equity, consumer trust and regulatory standing.
The global counterfeit economy is now estimated at $4.5T annually — more than the GDP of most G20 nations. Yet most CFOs still budget for it as a rounding error.
The measurable losses (lost units, warranty fraud, recalls) are only the first layer. The compounding cost sits in eroded price power and lost consumer confidence.
Where the money actually leaks
Grey-market diversion, refill fraud and warranty abuse account for over 60% of unaccounted revenue loss in the FMCG and electronics segments we studied.
In pharma, a single serialization failure can trigger regulatory action that costs 30–50× the anti-counterfeit program itself.
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