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Fake smart cards: a bargain or a threat to business?

This entry was posted on 8th September 2021.

Male hand using smart card to open automatic gate machine in office building

You’ve all probably received emails with prices of smart cards being too good to be true. Extremely cheap prices are a red flag that you’re being sold a cloned card, a fake chip or a cheap knock-off of a smart card. People could argue that there’s nothing wrong with this – it’s just a bargain! With so many fake chips appearing in the market, in this article we’ll be looking at whether a fake chip is a bargain or a threat to your business.

You might believe that fake smart cards offer you great value for money for a similar quality item. We’re here to tell you that you couldn’t be more wrong. Not only do counterfeit smart cards pose a huge risk to everyone involved – from suppliers and manufacturers to consumers and retailers – but they also put your business at risk.

Loss of customers and liability to your business

There are two major reasons why using counterfeit or fake smart chips are a threat to your business:

1. Loss of customers

2. Liability

Loss of customers

Unauthorised copies of smart chips might not meet the necessary requirements, which could create user issues as well as impacting security and performance. Ultimately, this will drive clients away. Not only could the products fall short in terms of efficiency and quality, but there could be higher rates of non-working products. This can be damaging to your customer base for several reasons; delays due to access issues, security breaches and more, are just some of the examples. Resellers or service providers are particularly at risk of a damage to their reputation and end-customer confidence if fake smart chips are supplied.

Liability

Let’s take a look at the popular manufacturer, NXP, the sole owner of tech related to MIFARE trademarks, products, and intellectual products related to MIFARE. Anyone who is seen profiting from fake MIFARE products will be liable for damages. The protective laws of IPR (intellectual property rights) prevent manufacturers from making unlicensed products and prohibit traders to sell or import products that include IPR infringing elements. Counterfeit smart chips could be seized by customs authorities and courts could issue bans, stopping them from being sold on the market. If the public finds out about these criminal acts, the company’s reputation can be seriously damaged among their clients and could do irreparable damage to the company’s services and products.

Why you shouldn’t purchase fake smart chips

So, here we have some of the main reasons not to buy fake smart cards.

1. Potential lack of security

2. Poorer performance

3. Quality will not be the same as genuine products, giving them a shorter lifespan and making them easier to break.

4. Your business’s reputation could also become damaged with these knock-offs, you could lose revenue, encounter legal problems, and experience loss of customer faith.

Ultimately, fake smart chips and cards can be a huge threat to your business. We strongly advise that you’re aware of suppliers that are selling these fake chips.

Don’t hesitate to get in touch with our expert and friendly team here at Universal Smart Cards by giving us a call on 1-800-810-4959 to order our quality smart cards. Trust our genuine products, available from authorised partners, providing you with guaranteed reliability and performance.

This entry was posted on Usmartcards Blog.

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