OpSec Security participated in the Cartes Asia conference and exhibition in late March. Held annually in Hong Kong, this was our first appearance at the show under the OpSec banner after the acquisition last year of JDSU Holographics. One of the first things that you notice about this show is the weight given to the future of our payment system and how the use of mobile devices will provide opportunities to enhance the customer experience. While we may be used to our ability to make payments by cards in the developed world, there are still hundreds of millions of people who don’t have access to the same kind of payment system we do.

In rural India or China, mobile phones can take the place of both a card and a payment terminal to process micro-payments, small, one-time transactions that are mostly paid in cash. This method provides a simple and secure way to transfer cash. For much of the world, however, cards are still the main form factor used to process a transaction. That is not to say that mobile payments are not on their way. If you define mobile payments as anything you do with a phone, bill paying would certainly qualify as a form of mobile payment. Some of us have probably used a tablet or smart phone to log on to our bank and make a bill payment. This is a form of mobile payment.

The focus at Cartes was predominantly the use of the mobile phone to make a payment to a merchant in a way that either either replaces or enhances the card. Exhibitors ranged from network security providers, to software developers to device manufacturers that turn your phone into a chip or magnetic stripe point-of-sale device. At OpSec, we know that the future is mobile but that the card is an integral part of the present and future–and that our work is critically important in protecting and enhancing the card brands and card itself through security holographic devices. Our products remain an integral part of the security and branding of cards for organizations like Visa, MasterCard, American Express, Diners and Discover. And the future of cards remains bright. New payment options such as debit cards, prepaid cards and gift cards are growing in share and profile, providing new opportunities for our security solutions.

In fact, I gave a presentation at Cartes Asia on the topic: “Owning your Future. What you can do to Secure your Future in a Rapidly Changing Transaction Market”. This presentation was designed to show that companies like OpSec who are in the current security ecosystem for cards can influence their future by   taking action now in understanding the role cards will play in the future payment system. In doing so a company can build a roadmap that continues to make it relevant to a changing market.  It is important to understand where we are today and what the market dynamics are. The market is currently in chaos as innovations continue, but are these innovations in search of a problem or are they solving a problem that exists today? I argued that for many consumers the use of cards in a terminal is not a friction point; it works everywhere and is reliable and secure. Major banks in the United States are betting billions of dollars that cards are relevant and secure and provide a great customer experience by rolling out chip cards to every US cardholder over the next few years. These chip cards based on the EMV Standard (EuroPay, MasterCard, Visa) will provide for enhanced security by having customers enter a pin number much like a debit card. And guess what else will be on the card to enhance the security and brand? That’s right, a security hologram from OpSec!

We sat down with OpSec’s Vice President of Global Licensing, Bill Patterson, to discuss this issue, and to share tips about how consumers can avoid getting scammed.

• How big a problem are counterfeit tickets?

With any major event, it’s always a problem.  Counterfeiters need an easy way to make a quick buck and disappear.  High-priced major events make that opportunity more attractive than most.  It’s simple economics… the demand is there, the supply is limited.  The counterfeiters will take advantage of that imbalance and “simulate” additional supply.

The proliferation of “print at home” tickets has added to the ease of selling counterfeit tickets.  But educated buyers/consumers can thwart that angle and force the supply chain back towards more secure methods.

• Is there any one sports league that’s more immune than the other?

No.  There isn’t any one sports league as it is not merely a sports problem.  Concerts, shows, political events… they’re all subject to the activities of counterfeiters.  Again, heavy demand and limited supply is the formula for a problem.

• Do you think the problem will get worse before it gets better?

The problem will continue to get worse as ticket prices for the event will continue to grow.  Increased security features and secure supply chains are helping to curb that growth before it gets out of control.

• Are counterfeiters keeping up with the types of security measures used in each ticket?

Definitely not.  And they don’t need to.  They need to simulate it “enough” to where someone isn’t going to look at it that closely.  That’s why we ask second-market purchasers to really inspect the tickets visually.  To keep up with the security features, counterfeiters must invest… and that type of investment encroaches on their ability to maximize short-term profits.  They’ll always take the easy way out to manufacture cheaply and quickly.

• What are some of the key giveaways for fans to look for when determining if a ticket is real or counterfeit?

Visually, look at the tickets themselves.  If there is artwork printed on the ticket, the print should be clean, in register and professional looking.  Inks should not smudge.  The variable information should not smudge.  Edges should be clean, crisp and at right angles.  The sides of the tickets should be straight… not like they’ve been hand-cut.  If you have friends nearby with known legitimate tickets, use it to compare the ones you’re about to purchase.

Ask why the purchaser is selling them.  Someone got sick? Injured?  The more elaborate the story, the more suspicious it like is.  And if someone is selling the ticket outside of the venue, they are likely going as well.  No one has extra tickets to sell and then they’re going home.  So ask to walk into the venue with them.  If they refuse, don’t buy the ticket.

If the ticket has been printed out on normal paper by a computer… don’t buy it unless the person is willing to walk into the venue with you.  That is just too simple to recreate with a desktop computer and over-the-counter software.

• What types of sites should fans buy tickets from online?  What sites should they avoid?

Every major ticket seller and/or league has an online partner.  For example, MLB uses Stub Hub.  NFL uses Ticketmaster.  For a small fee, you can upload your unwanted tickets to thousands of sellers looking to buy.  And as a buyer, you’re guaranteed that the ticket has been verified and will be provided to you as legitimate.  It’s a win-win for everyone.

Stay away from sites that are “flea market” type peer-to-peer sites such as Craigslist.  Nothing against Craigslist personally… I have purchased furniture, toys and a swing set through Craigslist.  But tickets… no way.  Too easy to be ripped off FAR, FAR AWAY from the gate of the venue.

Share your counterfeit ticket stories, or how you plan to steer clear of fakes this season, by tweeting at us! Follow @brandsecure for industry news and tips on how you can avoid getting scammed.

The FDA, working with international regulatory and law enforcement agencies from about 100 countries, said on Thursday that it took action against more than 4,100 Internet pharmacies, bringing civil and criminal charges, removing offending websites and seizing drugs worldwide.

The move was part of the fifth annual International Internet Week of Action, a global effort to fight the online sale and distribution of potentially counterfeit and illegal medicine.

For the complete story, please visit Reuters.

U.S. Customs and Border Protection confiscated 20,457 pairs of counterfeit Christian Louboutin shoes at the Los Angeles/Long Beach seaport.

“They label the shipments as generic shoes when, in fact, they’re bringing over contraband,” said Jaime Ruiz, a public affairs specialist for the U.S. Department of Homeland Security.

According to the CBP, the knock-off shoes that were transported in five different shipments on a cargo ship in large boxes from China had a domestic value of more than $57,000, meaning it cost just less than $3 per pair to make them.

For the complete story, please visit ABC News.

(NEW YORK ) – 50 Cent’s premier audio brand, SMS Audio (www.SMSAudio.com), announces its partnership with OpSec Security, Inc. (www.OpSecSecurity.com), the global leader in anti-counterfeiting and brand protection, to develop a program that authenticates its audio products for consumers. This includes placing holographic labels with integrated security technology on select SMS Audio product packaging.

“As we continue to unveil new headphones and additional products, we want to reassure our customers that they are receiving genuine, authentic SMS Audio headphones with tried and true features of durability and studio-quality sound,” said Brian Nohe, President of SMS Audio. “OpSec Security delivers a globally-recognized security program to fit those needs.”

The new labels will be placed on select, future products in addition to the current collection, which consists of the STREET by 50™ over-ear wired headphones, STREET by 50™ in-ear wired headphones and SYNC by 50™ over-ear wireless headphones. The authentication program, customized for SMS Audio, incorporates OpSec Security’s innovative optical imaging technologies, which deliver multiple targeted security features, and a track and trace system, allowing consumers, investigators and retailers to verify the authenticity of SMS Audio products.

“SMS Audio is taking an important and proactive step to protect their products and brand identity from counterfeiters, while enabling their customers to avoid purchasing poorly produced knock offs,” said  Tom Taylor, president of brand protection for OpSec Security. “We are honored to partner with SMS Audio to deliver a uniquely customized authentication solution to help protect their brand and loyal customer base from the dangers of counterfeiting.”

SMS Audio is a new audio brand by 50 Cent that offers listeners the highest caliber of headphones. Delivering a professional, studio-quality music experience, the line is initially comprised of the SYNC by 50™ over-ear wireless headphones, the STREET by 50™ over-ear wired headphones, and the STREET by 50™ in-ear wired headphones. Utilizing Kleer® wireless technology, SYNC by 50 incorporates full on-board controls and allows up to four listeners to simultaneously rock from a single source with an unparalleled, crystal-clear wireless range.

The new security labels will appear on the current product line, as well as on select, future SMS Audio products. Availability from Fourth Quarter 2012. For more information about SMS Audio, visit www.SMSAudio.com. For information on OpSec Security, Inc., visit www.OpSecSecurity.com.

About SMS Audio, LLC:

A premier audio headphone and accessories brand, SMS Audio, LLC is dedicated to improving the way people experience music. SMS Audio combines technology, function and style to bring the highest caliber of sound, comfort and fashion to every product. For more consumer information on SMS Audio visit www.SMSAudio.com.

About OpSec Security

OpSec Security, Inc. is a wholly-owned division of OpSec Security Group plc (London AIM: OSG). OpSec Security is the global leader in providing anti-counterfeiting technologies as well as solutions and services for physical and online brand protection to over 300 companies across industry sectors and over 50 governments worldwide. The Group operates manufacturing facilities and laboratories in the USA and the UK, and has sales operations in the Americas, Europe, and Asia. For more information, please visit www.opsecsecurity.com. Follow OpSec on Twitter @BrandSecure.

While August weather means primetime for beach-goers, it’s also primetime for online scammers and counterfeiters, who prey on unsuspecting buyers attracted to deeply discounted items.

Counterfeit products pose serious threats to businesses and consumers alike, costing US businesses between $200 and $250 billion each year.  It is estimated that between 5-7 percent of the world’s trade is comprised of counterfeit goods. In addition to fiscal losses for businesses, counterfeit products can also be extremely dangerous to consumer health and safety.

In this seasonal report we examined brand abuses among 4 popular summer products including a brand name barbecue, camping equipment and 2 summer fashion accessories. This analysis looked at business to business (B2B) trading sites—where the majority of bulk buying is done—and business to consumer (B2C) ecommerce sites, as well as search engines product inquiries.

The brands we examined include:

• Sperry Top-Sider
• Coleman
• Maui Jim
• Weber

Findings:

Just because it’s summer doesn’t mean counterfeiters are on vacation—In fact, just the opposite is true. OpSec found that suspect counterfeiters do have a strong presence during the summer months. Questionable goods were found across several online channels that attract millions of visitors every year.

The majority of Sperry Top-Sider listings on a popular B2B trade board advertised the shoes at up to 90 percent off the average retail price. In one particular listing for tents, a seller offers a popular Coleman tent model for $6 – $7 each. Coleman family-size tents retail at approximately $200-$300. Listings for popular items such as Maui Jim sunglasses and Weber grills showed similar traits. A search for Maui Jim sunglasses showed listings that advertised pairs for as little as $0.1 each. Authentic Maui Jims average $260 per pair.

• Sperry Top-Sider shoe listings advertised an average production rate of 64,000 pieces per month. Given the average retail value of Sperry Top-Sider shoes is $90; this represents a potential loss of approximately $57.6 million.
• Coleman tent listings showed an average production rate of 72,000 pieces per month. Since the average retail value of a Coleman tent is between $200-$300, this could mean a potential loss of about $21.6 million.
• Maui Jim sunglasses listings showed an average production rate of about 20,000 pieces per month. Given the average retail value of Maui Jim sunglasses is $260; this represents a potential loss of about $5.2 million.
• Weber Grill listings showed an average production rate of about 340,000 pieces per month. Given the average retail value of Weber Grills is $260; this represents a potential loss of about $85 million.

While the heavily discounted prices of these items may seem appealing to the average consumer, it is extremely important to remain vigilant when shopping online. Counterfeits are hardly ever the same quality as the real deal, and could be putting you and your family in danger. Fake sunglasses, for example, will rarely offer the same UVA/UVB protection as authentic ones, and will most likely break after just a few uses. Always be sure to purchase from an authorized retailer, and always do your homework before buying:

• A price that looks too good to be true means it probably is
• Misspellings on packaging are a dead giveaway of a fake
• Check for inconsistencies with labels or tags – real merchandise should have the same colors, typeface, and logos on each tag.

For more information about counterfeit products and to learn about OpSec Security’s brand protection solutions, please visit www.opsecsecurity.com.

Boston, Mass. — July 18, 2012 — OpSec Security, Inc., the global leader in anti-counterfeiting and brand protection, today announced that it was selected by Klipsch Group,Inc., a leading global speaker manufacturer, to implement an authentication program that will protect its products from increasing threats of counterfeiting. The program will include a holographic label with targeted security features, allowing investigators, retailers and consumers to verify the authenticity of Klipsch branded goods.

“Promoting transparency and openness between our customers has been a priority for Klipsch since our founding. OpSec’s authentication program will not only allow us to protect our products with a device that is designed to enhance our brand image, it will provide our customers the peace of mind that they are purchasing truly legitimate Klipsch products,” said Mike Klipsch, president of global operations for Klipsch. “We selected OpSec Security for their extensive industry knowledge, experience and superior technology with enhanced security features that will help us stop counterfeiters before they target our loyal customers.”

Klipsch delivers high-performance audio solutions spanning a wide variety of categories. The growing popularity of their personal audio products, particularly headphones, has given rise to counterfeits and heightened the need for a solution that protects the brand and consumers from unknowingly purchasing fakes. OpSec Security delivers physical product authentication devices to protect millions of dollars’ worth of genuine goods for leading brands worldwide. OpSec’s brand protection solutions draw upon the industry’s most comprehensive portfolio of product authentication technologies and delivery platforms, providing cost-effective and highly secure product authentication solutions that protect against counterfeiting, tampering or diversion.

“With consumer electronics representing 22 percent of the counterfeit goods seized by ICE* in 2011 alone, Klipsch is setting an important example as a leading organization aiming to protect their customers from purchasing illicit, and potentially harmful, products. From educating consumers on the potential dangers of counterfeiting to pursuing legal action against known offenders, Klipsch is now taking their authentication program to the next level with the implementation of our holographic label,” said Tom Taylor, president of brand protection for OpSec Security. “We are honored to partner with Klipsch to deliver a proven authentication solution and join them in the fight against counterfeiting.”

About OpSec Security

OpSec Security, Inc. is a wholly-owned division of OpSec Security Group plc (London AIM: OSG). OpSec Security is the global leader in providing anti-counterfeiting technologies as well as solutions and services for physical and online brand protection to over 300 companies across industry sectors and over 50 governments worldwide. The Group operates manufacturing facilities and laboratories in the USA and the UK, and has sales operations in theAmericas, Europe, and Asia. For more information, please visit www.opsecsecurity.com. Follow OpSec on Twitter@BrandSecure.

About Klipsch Premium Speakers

For over 65 years, Klipsch has designed premium speakers for those who are passionate about great sound. Company founder Paul W. Klipsch started this legacy in 1946, and it continues today with sheer commitment to innovation and delivering the world’s most powerful, detailed and emotional sound reproduction. Today, the brand’s diverse product portfolio encompasses home theater, professional cinema, installed whole-house contracting, commercial, computer speakers, iPod® docks and headphones. As one of the first U.S. loudspeaker companies, Klipsch continues to be the high-performance brand of choice for audiophiles and home theater aficionados around the world. Klipsch Group, Inc. is also a wholly-owned subsidiary of VOXX International. (NASDAQ: VOXX).

For further information, contact:

OpSec Security

Lorri Veidenheimer

lveidenheimer@opsecsecurity.com

(617) 226-3000 ext. 3075

Pan Communications

Susan Frechette

opsec@pancomm.com

(617) 502-4300

The 70 websites seized are part of Project Copy Cat, an iteration of Operation In Our Sites (IOS), and closely mimicked legitimate websites selling authentic merchandise and duped consumers into unknowingly buying counterfeit goods. Many of the websites so closely resembled the legitimate websites that it would be difficult for even the most discerning consumer to tell the difference.

For the complete story, please visit ICE.

• Multiple Licensees: When a seller offers merchandise from multiple licensees, it’s always suspicious. In this listing, in which the seller is offering SpongeBob SquarePants merchandise, they also list the following: Disneyy merchandise and party goods, such as Sesame Street,winnie the pooh,High School Musical,ben 10,Princess,Mickey mouse,Superman,bratz,Spiderr-man,Cars,Hannahh montana,Barbie Doll,SNOOPY,Dora, and so on We also can specially tail
• Poor Packaging: Always take a close look at the packaging in the photos of a listing. This listing for an iPhone case featuring SpongeBob SquarePants features the merchandise in plastic with no authentication or naming. However, keep in mind that even if the packaging appears suspect, it can be deceptive. Sellers often take photos of one authentic item and then do a bait and switch. For example, this listing of a Hulk doll could potentially fall into this category as it features other suspicious indicators—the seller has only been a member since May 2012 and there is no customer feedback.
• Seller Will Only Communicate Online: Deliberately keeping communication between the seller and the buyer at an arm’s length is another suspicious indicator. This listing for Hulk figurines emphasizes the following: We are professional mamanufacturer and we also have trade company to do hair extensions bussiness.,. we will quote you a best price., please chat online.We are professional mamanufacturer and we also have trade company to do hair extensions bussiness.,. we will quote you a best price., please chat online.
• Keep An Eye on New Members: New members that join a trade board are always suspect. The seller in this listing for Transformers masks has only been a member since April 2012.
• Suspicious Payment Forms: Pay attention to payment methods on every site. This listing for a Dora the Explorer costume only accepts the following: paypal, western uinon, money gram,T/T

Deep discounts being offered on B2B trade boards are also a red flag. Authorized retailers do not usually sell at discounted prices, so a “wholesale” price can generally mean you aren’t getting the real thing. And, as always, keep in mind that if a product is out there, it is probably being counterfeited.