What are security labels for anti-counterfeiting ?

In an increasingly globalized economy, the risk of counterfeit products is a persistent problem for brands looking to protect their intellectual property.

Maintaining product integrity and brand reputation is more important than ever, with several security products on the market available to try and combat bad business practices.

Anti-counterfeiting labels are one such solution, but how do they fare in the modern product landscape? And are there additional solutions to boost their effectiveness? 

We’ll answer these questions in this article.

How do security labels work?

Security labels are stickers and tags that are designed to protect products or packaging from tampering by making it difficult for counterfeiters to replicate the labels. Often these stickers also act as a seal and are known as security seal labels.

Also known as anti-fake labels in the anti-counterfeiting market, they’re also used to prove authenticity. These labels can also contain unique identifiers to mark products similar to how serial codes work.

Security labels can be both overt and covert. Covert solutions are not detectable from inspection and require specific technology or tools whereas overt solutions, on the other hand, are instantly recognisable.

Types of anti-counterfeiting labels

The main types of anti-counterfeiting labels are as follows:

1. Security holograms, also known as hologram labels, which use complex and difficult-to-replicate techniques to reflect light at multiple angles, revealing a hidden pattern or picture.
2. Tamper-evident labels which leave an unmistakable mark when removed or damaged, such as text reading ‘VOID’.
3. Barcodes/QR codes which contain scannable elements linking to a database that provides information on the product’s origin.
4. Optical variable devices (OVDs) which change color or appearance when looked at from different angles, making them harder to replicate.
5. Destructible security labels are designed to break apart when removed.

The kind used generally depends on the type of product it is being applied to. For instance, tamper-evident labels are common retail security labels.

Advantages of security stickers

Security stickers offer several advantages that have made them a popular anti-counterfeiting solution. They are:

• Cost-effective. Compared to more advanced technologies, security stickers are relatively cheap to implement.
• Easy to use. Security stickers offer a simple method of anti-counterfeiting from a production and packaging point of view.
• Customisable. Security labels can be customized to include bespoke branding elements such as designs or iconography.
• Secure. Labels can combine overt and covert levels of protection to boost their protection against counterfeiters.
• Good for consumer confidence. Security stickers are easy for consumers to verify and are a simple visual indicator of trust in a product.

Limitations of label technology

Despite these advantages, security labels aren’t an infallible protection against counterfeit issues. Here are a few ways in which they fall short:

• Vulnerability to environmental factors. Security labels can be damaged by conditions such as high temperature, humid environments, and chemicals.
• Potential for replication. While security labels are designed to be difficult to replicate, they are ultimately still just stickers. Skilled counterfeiters can and do find ways to copy them.
• No lifecycle tracking. Security labels only offer protection against tampering with packing, they don’t do anything to halt unauthorised distribution on the grey market.
• Non-reusable. Tamper-proof labels are single-use and once removed by the customer, can no longer support the product's integrity throughout its lifecycle.
• Impact on customer experience. Overly complex or difficult-to-remove labels can lead to a frustrating consumer experience when trying to access products.

A strong anti-counterfeiting solution

While security labels are an essential tool in combating counterfeiters, their limitations do highlight a need for a more modern solution.

One method to overcome these challenges is to pair basic security stickers with NFC authentication technology. Small NFC chips can be scanned by consumers on most smartphones, allowing them to verify purchases and access detailed product information.

This is also a solution that counterfeiters can’t replicate, meaning consumers can have complete trust in the products they buy. 

Manufacturers can also use NFC technology to track products throughout their entire lifecycle, providing valuable product data and consumer engagement otherwise unobtainable through more basic means.

Authentify It is such a solution, offering an affordable, convenient way for manufacturers to communicate with their customers and fight counterfeiting with cutting-edge security technology like blockchain.

Get in touch today to find out how Authentify It can revolutionize your product security.