“Fake it till you make it” might seem like sound advice, but not when it comes to luxury goods. Counterfeit items could cost you more than just money.

Thanks to artificial intelligence, spotting a fake Chanel or Gucci has never been easier.

Luxury market still thriving despite expected shrinkage

While the global luxury market is expected to shrink in 2025, the U.S. remains the second largest, valued at $106 billion. According to AP News, Europe holds the top spot. This highlights the need for advanced technology to combat counterfeit schemes.

The Hollywood Reporter says Cool Kicks, a popular sneaker store in Los Angeles, attracts 200 to 600 customers daily at its Melrose location. Customers bring in shoes for the store to buy and resell.

To reduce the risk of counterfeit goods, Cool Kicks partners with AI company Entrupy. Entrupy uses a system that takes detailed photos of products from multiple angles to analyze their authenticity.

According to Entrupy, its app compares the photos with a database of verified goods, ensuring accuracy in authentication.

Traditional methods still in use

Before the rise of AI, and still today for some companies, physical inspections were –– and are –– used to verify luxury goods. For instance, real UGG boots have security labels with QR codes and holographic logos.

At sneaker resell stores, inspectors look for signs like uneven stitching, poor-quality leather and mismatched logos. Some luxury bag companies have introduced microchips for digital verification.

Counterfeiters continue to evolve despite these measures, making their products harder to detect.

Last November, retailer Lacoste began using AI to identify counterfeit items returned to their stores. According to a press release, the technology delivers over 91% accuracy in real-world scenarios.

Counterfeits fuel organized crime

Buying counterfeit goods may seem harmless, but it poses risks beyond financial losses. The United Nations Office on Drugs and Crime reports that counterfeit goods are part of a multi-billion-dollar global industry linked to transnational organized crime.

The best way to avoid fake luxury goods is to shop from authorized retailers and check for authenticity certificates. If a deal seems too good to be true, it probably is.