Impact of Brand Impersonation chris February 27, 2025
resource

Damaging Effects Online Impersonation and Your Brand

The Importance of Brand Integrity

Any brand can be hijacked and used as part of an online brand impersonation scam. At Allure Security, we see numerous examples of small businesses targeted by brand impersonation attacks.

Fraudsters can take advantage of trust in brands, from playground equipment makers to large financial companies. Larger companies like Amazon, Microsoft, Apple, and Google are more attractive targets for fraudsters. This is because they have many users and large amounts of data.

Brand impersonation is a risk for the target. Users can download malware, or they can reveal personal information. You can use this information to access financial resources and corporate networks. It can also cause other problems for the target. 

However, brand impersonation also harms the brand used in the attack. Brand impersonation damages the trust and relationships that brands build online. This can lead to fewer customers and lower revenue. Victims often turn to brands they trust more.

A Quick Explanation of Online Impersonation

Brand impersonation attacks occur when a cybercriminal uses a brand’s logo, creative imagery, content, or likeness to trick the brand’s customers into thinking it is the genuine brand, all with the intent to steal sensitive data. This is accomplished by creating a malicious website, social media account, mobile app, and other digital assets that resemble the authentic version. These attacks can lead to significant and immediate harm to your brand’s reputation and undermine many areas of your business. 

The threat is persistent and expansive. There are over 252,000 new websites set up each day, and between 290,000 and 370,000 phishing websites detected each month. Moreover, the total number of phishing attacks grew between May 2023 and April 2024 by nearly 50,000 attacks. Facebook, in particular, faced over 44,750 phishing attacks in 2024 in which the name Facebook was embedded into the malicious domain

Brand impersonation attacks generally take three forms:

Fake websites (spoofs)

are designed to look as authentic as possible, often incorporating accurate brand colors, imagery, or user interfaces. Invitations, including SMS and e-mail, are sent to customers and prospects by schemers posing as the actual company. They exploit search engine results, digital ads, QR codes, and more to deceive their targets and accomplish their goals.

Fake social media accounts

impersonate your brand, executives, spokespeople, and influencers to exploit trust and trick people into disclosing credentials, payment information, and more.

Rogue Mobile Applications

are created as copies of legitimate apps with malicious functionality injected. When the user logs into the fake application, the fraudster can collect their account credentials and payment information. The threat posed by rogue mobile applications is increasing as consumers spend more time managing their daily activities on mobile devices. On average, a smartphone user accesses about 10 apps per day and 30 apps per month, with over 2.87 million apps available on the Google Play Store.

These impersonations threaten your brand’s reputation and significantly impact customer and prospect interactions. If customers become the target of these fake representations, the damage to their experience and perception of your company has a widespread impact on your business.

Customer Loyalty and Retention

Brand impersonation is not the company’s fault; however, it is their responsibility to address it. 63% of consumers will blame the authentic brand for impersonation. Consumers’ perceptions become their realities, and if they have been subjected to deception and fraud, they will blame the brand more often than not. 

These impacted customers may switch to a competitor, leading to heightened churn rates, reduced customer lifetime values, and diminished long-term profitability for your brand. According to a 2023 survey by Edelman, respondents were 59% more likely to purchase new products from brands they trust, even if they are more expensive than the competition. Similarly, 67% of respondents said they were more likely to stay loyal and recommend the brand to others, even after a mistake. According to the data, a damaged brand reputation leads to a lack of confidence in the consumer and more difficulty promoting new services.

The repercussions of brand impersonation extend beyond immediate revenue loss. It can result in the propagation of false information, ultimately furthering the decline in customer trust. It is crucial to address instances of brand impersonation before it shapes prospects’ impressions.

of Customers Will Blame the Brand After an Impersonation Attack.
of Customers More Likely to Stay Loyal and Recommend Brands They Trust.
of Organizations Lost Existing Customers Because of Cyberattacks.

Overall Financial Health

The impact of dissatisfied customers must also be considered. Brand impersonation attacks can substantially erode trust and impact the company’s ability to attract new customers. It costs businesses up to 7x more to acquire a new customer than it does to retain the current ones. Likewise, the probability of selling to an existing customer is 60 – 70% compared to the 5 – 20% chance of selling to new prospects.  

This decline in trust results in reduced marketing return on investment (ROI), meaning substantially increased customer acquisition costs. Moreover, additional costs to counteract the impact of online impersonations only compound this already heavy financial burden. Carol Howley, CMO at Exclaimer, explained in her article in Forbes, “Trust and brand are intrinsically linked. A brand’s value isn’t only built on the quality of its products or services, but also on the confidence consumers have in its ability to deliver. Without trust, even the most innovative marketing strategies will struggle to generate lasting impact.”

$23 Trillion

to Acquiring New Customers vs. Retaining Existing

Lower ROI

Impact of erosion of trust on marketing campaigns

49%

of Business Executives Rank Brand Integrity and Loyalty Their Top Cyber Investment

$4.88 Million

Average Cost of a Data Breach

$17,700 / Minute

Money Lost to Phishing Attacks

7x Greater Costs

Projected Annual Cost of Cybercrime in 2027

Customer Acquisition

The impact of dissatisfied customers must also be considered. Brand impersonation attacks can substantially erode trust and impact the company’s ability to attract new customers. It costs businesses up to 7x more to acquire a new customer than it does to retain the current ones. Likewise, the probability of selling to an existing customer is 60 – 70% compared to the 5 – 20% chance of selling to new prospects.  

This decline in trust results in reduced marketing return on investment (ROI), meaning substantially increased customer acquisition costs. Moreover, additional costs to counteract the impact of online impersonations only compound this already heavy financial burden. Carol Howley, CMO at Exclaimer, explained in her article in Forbes, “Trust and brand are intrinsically linked. A brand’s value isn’t only built on the quality of its products or services, but also on the confidence consumers have in its ability to deliver. Without trust, even the most innovative marketing strategies will struggle to generate lasting impact.”

Employee Recruitment and Engagement

Damage to a company’s reputation caused by online impersonation affects its ability to attract and retain employees. 82% of candidates consider employer reputation before applying, and negative news can discourage them from pursuing opportunities with the company.

The average new hire costs $4,000 to recruit, but successful employer branding can reduce new hire costs by up to 50%. Similarly, companies with a strong employer brand receive 50% more qualified applicants. Employers with weak branding do not gain these benefits. They may need to invest more in recruitment marketing, employee branding, and public relations to rebuild their reputation. Job scams consisting of scammers impersonating companies to trick victims with fake job offers can sow distrust of a brand’s job postings, further complicating recruitment efforts. 

Online impersonation can also undermine trust among current employees. Employees who actively work to maintain your brand’s integrity may be disappointed in the company’s failure to protect its customers and reputation. They may also feel insecure about the company’s stability. Strong employer branding can reduce employee turnover by as much as 28%.

Impersonation-related legal challenges and damage to the company’s reputation can also increase HR workloads. As brand impersonation attacks occur, the HR team must spend additional time and resources addressing the concerns of potential candidates and current employees.

82%

Applicants Who Consider Employer Reputation Before Applying

50%

New Hire Recruitment Cost Savings with Strong Brand

50%

More Qualified Applicants with Strong Brand

$9,000 / Minute

Average Cost of a Data Breach

$8.300

Money Lost to Phishing Attacks

7x Greater Costs

Projected Annual Cost of Cybercrime in 2027

Business Resiliency

Brand impersonation attacks undermine everything that helps a business thrive, leading to financial losses, damage to reputation, harm to customer relationships, and weakened business resiliency. 

For example, operational disruptions can increase the workloads for human resources and customer service departments. Online impersonations lead to increased customer service inquiries and complaints, which can overwhelm customer service teams. At the same time, human resources departments spend extra time assuaging the concerns of employees and potential hires.  

Meanwhile, the cost of downtime due to a cyber-attack or impersonation is a heavy penalty. Estimates rate the average cost of downtime for enterprise companies to be $9,000 per minute. Beyond this initial expense, the diversion of resources to address the crisis and aftermath further increases the total costs. Consider how crisis management may delay the launch of new digital services, redirect critical team efforts, or prevent entry to new markets.

Minimize the Impact of Online Impersonations

  • Use AI-powered, continuous monitoring tools to identify online impersonators of websites, social media handles, and executive communications.
  • Contract with a website takedown service provider or build an experienced internal takedown team.
  • Implement multi-factor, two-factor, or other forms of strong authentication. This should include biometric authentication as one of the factors.
  • Deploy decoy data to pollute stolen data, rendering it unusable.
  • Make clear which online communication channels are official and that the company will not communicate with or direct customers to any alternative channels. 
  • Demonstrate responsible stewardship of customer data with regular communications about steps to protect customers from fraud.
  • Ensure that customer support teams are well-trained and equipped to handle inquiries related to online impersonations promptly and effectively.
  • Reach out proactively to customers who may have been affected by online impersonators and offer assistance and reassurance.
  • Pursue legal action against the operators of online impersonations to deter future fraud.
  • Work with regulatory bodies and law enforcement to address and prevent fraudulent activities.
  • Register trademarks, copyrights, and other intellectual property
  • Collaborate with legal counsel to navigate regulatory complexities and any complex intellectual property infringement cases
  • Maintain morale by informing employees about security measures and company efforts to combat fraud.
  • Use employee ambassadors to promote the company’s positive aspects and counteract negative publicity.
  • Invest in employer branding initiatives to highlight the company’s strengths and commitment to integrity.
  • Use targeted recruitment marketing to reach ideal candidates and reassure them of the company’s stability and security.
  • Monitor for fake job postings impersonating your brand
  • Develop and regularly update crisis management plans to address potential fraud-related activities effectively.
  • Train employees on the importance of cybersecurity and how to recognize and report potential fraud.

Trends in Brand Protection: Grappling with General AI

Generative AI is ushering in a new era of digitization and technology with untold opportunities to increase the efficiency, capabilities, and output of technology resources and professionals. However, it is also empowering cybercriminals in much the same way. Since ChatGPT’s launch in late 2022, the number of phishing attacks has grown by 4,151%. 

This staggering rise in attack volume is due to various factors, but generative AI’s (Gen AI) role should not be understated. Tyson Goings, Head of Fintech Strategy at Verizon, offered this prediction for 2025, 

“The year 2025 is poised to be a tipping point in the battle for digital identity and the use of next-generation AI against victims… No longer confined to mass phishing and smishing campaigns, fraudsters are adopting the precision tools of personalized persuasion, such as mimicking a loved one pleading for urgent financial help or impersonating service providers such as bank representatives to obtain sensitive account information. This is the reality that deepfakes, and AI-powered impersonation are enabling, and 2025 will see a doubling or more of these types of attacks in 2024.”

Gen AI lowers the barrier to entry for would-be fraudsters by enabling them to produce a clean, error-free website and email content in moments, including imagery. Not only does this make an individual scam easier and cheaper to produce, but it also makes them more challenging to detect. Typos, odd phrasing, and grammatical errors were long-standing red flags used by consumers and professionals to spot potential phishing attempts. Now phishing attacks can appear much more authentic and, as a result, are much more deceptive.

There are still strategies security teams can employ to recognize a phishing email or fraudulent website. Adjust your cybersecurity and customer awareness training to focus on the following:

  • Review the Email Sender: Ensure the email’s sender is a legitimate and relevant address.
  • Generic Content: The content may be well-written, but is it relevant? Look for vagaries or the absence of key details.
  • Hover Over Links: Before clicking, hover the mouse cursor over email links. A preview of the link destination will appear. Note this strategy does not work on mobile devices.
  • Verify the Source: Confirm through a second channel that the email request is legitimate.
  • Look for Emotional Appeals: Phishing attacks seek to induce panic or alarm in the target to induce careless action.

Technology progresses rapidly, and already Gen AI is making its impact felt. We should expect phishing attacks to continue to rise in the coming years. In the meantime, organizations should boost their fraud prevention and brand protection efforts to mitigate risk.

Protect Your Customers,
Protect Your Brand

The consequences of a brand impersonation attack are far-reaching and can be devastating to your business's health. From customer acquisition and retention to finances and more, the continuation of strong business growth depends on a diligent brand reputation. There are steps you can take today to reduce your risk and protect your brand. Contact Allure Security to discuss how to locate and eliminate brand impersonation attacks before your customers are ever targeted.

Related Articles