Impersonation scams: how to protect your brand from these scams?

Impersonation scams are one of the sneakest and most damaging digital threats that brands face today.

This malicious tactic, where criminals impersonate your company (practicing the act of impersonating), aims to deceive your customers, steal sensitive data, and erode hard-won trust. In other words, protecting yourself against these impersonators isn't just a security measure, it's a necessity to preserve the integrity of your brand.

Here at Branddi, as specialists dedicated to intelligent brand protection, we deal directly with the complexity and damage caused by impersonation scams every day. That's because our experience monitoring and combating these threats uniquely positions us to guide you.

Read on to find out how to identify and neutralize these scams before they affect your business!

Impersonation scams: what are impersonation scams?

Impersonation scams, known in Portuguese as impersonation scams or digital ideological falsehood frauds, are a specific type of fraud where criminals impersonate a trustworthy entity.

This entity may be a well-known company - perhaps even your own -, a government agency (such as the Internal Revenue Service or Social Security), a bank, or even a public figure.

The main purpose of these impersonators is always to trick the victim. To do this, they seek to convince her to:

• Provide sensitive personal information (such as passwords, social security numbers, bank details);
• Click on malicious links that direct the consumer to fake pages;
• Buy gift cards and provide the codes (a common method because it's difficult to track).

The scale of this problem is vast and growing. Data from Federal Trade Commission (FTC) of the United States, a global reference in the fight against fraud, are a strong indicator.

In 2023, the FTC registered more than 330,000 complaints of corporate impersonation scams and nearly 160,000 of government impersonation.

Together, these impersonation scams accounted for nearly half of all cases reported directly to the agency.

The financial loss is equally impactful: reported losses due to impersonation scams exceeded US$ 1.1 billion in 2023 alone, an amount that is more than triple that registered in 2020.

This demonstrates not only the frequency but the increasing effectiveness of these fraudulent tactics and the urgent need to protect against them.

The main types of impersonation scams

Impersonation scams manifest themselves in a variety of ways, as criminals constantly adapt their strategies.

To this end, they explore multiple channels - such as e-mail, social networks, SMS and telephone - to practice the act of impersonating and deceiving the public, making identifying these scams a challenge.

A FTC survey What we mentioned before also provides data that illustrates this variety: while telephone calls were the most reported contact method for impersonation scams in 2023 in the USA, text messages (SMS) caused the highest average losses in scams that impersonated companies. This shows how impersonators choose channels strategically.

Understanding the most common tactics is vital for defense. Therefore, below, we will detail the most common types of impersonation scams that your brand and your customers may encounter.

Brand Impersonation

No Brand Impersonation, your brand becomes the mask worn by criminals.

This type of impersonation scam involves creating a fake online presence that mimics your visual identity and name to trick customers.

This happens through fake profiles on social networks disclosing non-existent offers, cloned sites (phishing), misleading paid ads that divert traffic, and even fake mobile apps.

The direct result for the company that is the victim of this impersonating is the erosion of customer trust, loss of revenue, significant reputational damage, and an increase in demand for customer support to deal with victims of the scams.

Employee Impersonation

Unlike the external focus, employee impersonation aims at the identity of an employee. In other words, impersonators obtain employee credentials (via phishing, leaks) and use them to impersonate them within the organization.

The purpose of this impersonation scam may be to access restricted internal systems, steal corporate or customer data, commit financial fraud, authorize undue payments, or apply social engineering against other colleagues to obtain more access or information.

This act represents a serious threat to internal security, compromising data, finances, and the operation.

Executive Impersonation

O Executive Impersonation intensifies the danger of impersonation scams, with scammers exploiting the authority of leaders such as CEOs for greater credibility.

And sadly, that tactic is on the rise. According to Fortra data released in January 2024, the personification of executives on social networks reached an historic peak in the third quarter of 2023, representing more than 54% of the total volume of impersonations on these platforms and surpassing, for the first time, that of brands.

The act of impersonating an executive is manifested in fake LinkedIn profiles offering fake deals, or via spear phishing emails. And the IA is often used to create realistic fake profiles and escalate these attacks.

This impersonation scam exploits trust in leadership, directly threatening the finances and security of your entire company.

How do impersonation scams affect your brand?

Impersonation scams may seem like a distant or secondary threat to many companies, often operating discreetly, almost invisible in the daily routine.

However, underestimating the impact of these scams is a dangerous mistake. After all, behind the façade of isolated incidents, impersonation scams have considerable destructive potential.

That's because when impersonators use your brand name successfully, the consequences can be severe and multifaceted, shaking fundamental pillars of your business.

Next, we'll explore in detail the main areas where impersonation scams can cause significant harm to your brand, often in ways that go beyond the obvious.

Damage to reputation

When impersonators use their brand name to carry out scams, the most immediate and perhaps most lasting consequence is reputational damage.

Consumer trust is a valuable asset, and research CX Trends 2024 (Octadesk/Opinion Box) reinforces this: for 54% of Brazilian consumers, the company's reputation on Reclame Aqui is a decisive factor when choosing between stores with the same price. In addition, 48% use this platform to research before buying.

That is, losing that trust due to impersonation scams can drive away current and potential customers significantly.

Loss of revenue

Impersonation scams aren't just an image issue: they cause concrete financial losses.

And this occurs in multiple ways:

• Customers may make payments to impersonators thinking they are buying from you;
• Legitimate sales may be lost because fearful consumers avoid your brand;
• Clicks on paid ads can be diverted to fake sites, wasting your marketing budget.

In addition, there are the indirect costs associated with solving the problems. O Kroll Global Fraud and Risk Report (2022), as mentioned by Canaltech, pointed out that 75% of the organizations interviewed in Brazil recognized significant impacts of impersonation scams in the last three years, even with controls implemented.

In other words, impersonation scams are a relevant component of this scenario, draining revenues that should go to your business.

Impact on partners and stakeholders

A brand's trust network goes beyond customers. That's because impersonation scams can also undermine relationships with business partners, suppliers, investors, and other stakeholders.

Imagine an impersonator impersonating an executive to send a false payment request to a vendor, or a scam that affects investors and generates negative publicity.

These incidents create doubts about the security and stability of your business. This is because partners may become more cautious when doing business, investors may question risk management, and the overall perception of your brand in the business ecosystem may be impaired due to association with false activities linked to impersonation scams.

Legal and regulatory risks

The proliferation of impersonation scams associated with your brand can attract unwanted attention from regulatory bodies and open doors to legal complications.

Depending on the nature of the scam and the jurisdiction, your business may be investigated for data protection flaws (if customer data is exposed in the process) or even face legal action from victims, who may allege negligence.

That is, failing to demonstrate reasonable efforts to combat the scammers who are attacking your brand can result in heavy fines and sanctions, turning a problem into a legal and regulatory crisis.

Increase in operating costs

Dealing with the consequences of impersonation scams generates significant direct and indirect operating costs.

That's because your customer support team is overwhelmed, hours of work are spent identifying and removing fake content (websites, profiles) created by impersonators, and it may be necessary to invest in tools and consultancy.

The report Cost of a Data Breach 2024 from IBM/Ponemon Institute reveals that the global average cost of a data breach reached US$ 4.88 million in 2024, the highest amount ever recorded. And while this number encompasses several types of violations, many of them start with impersonating tactics (such as phishing).

The study also highlights that post-breach response activities and lost business accounted for 75% of the increase in average costs. In other words, it's no exaggeration to say that combating impersonation scams consumes valuable resources that could be invested in business growth.

Loss of competitive advantage

While your team dedicates precious time and resources to combat impersonation scams and mitigate their harm, your competitors may be focused on innovation, marketing, and customer acquisition. After all, the constant need to “put out fires” caused by impersonators distracts your company's strategic focus.

As a result, a shaken reputation may cause customers to opt for competitors perceived to be safer. What in a competitive market can result in a tangible loss of market share and competitive advantage in the long term.

Signs that indicate that your brand is suffering from impersonation

Identifying impersonation scams early can limit damage to your brand. Therefore, be aware of certain indicators that suggest that impersonators may be actively impersonating your company.

Recognizing these warning signs is the first step in taking protective action. Here are some very clear ones:

• Unusual increase in complaints: customers reporting false promotions, unknown charges, or orders not received;
• Fake profiles and sites: discovering pages on social networks or websites using your logo and name without permission;
• Alerts from ad platforms: notifications about policy violations in ad campaigns that your team didn't create;
• Negative mentions online: complaints on platforms like Reclame Aqui mentioning scams related to your brand;
• Suspicious communications: reports from customers or partners about questionable emails or messages that seem to come from your company;
• Anomalies in marketing metrics: strange fluctuations, such as a sudden increase in the Cost Per Click (CPC) of your brand keywords, indicating possible brand bidding by impersonators.

How to protect your brand from impersonation scams?

In the face of the complexity and growing volume of impersonation scams, it may seem like an uphill battle to protect your brand effectively.

However, robust protection is not only possible, but it is an indispensable practice for the health and longevity of your business in the digital environment.

This is where Branddi's expertise comes into play. As specialists in intelligent brand protection, we develop a proactive approach and use advanced technology with a single objective: to shield your brand against impersonators and impersonating tactics. That is, it's not just about reacting, but about building solid defenses.

In the following topics, we will detail the specific strategies and solutions that Branddi employs to neutralize impersonation scams and ensure the security of your online identity.

Make your employees aware of digital protection

The front line against many impersonation scams, especially those that aim to gain internal access (such as phishing aimed at employees or employee impersonation), are their own collaborators.

Therefore, it is vital to invest in constant training on the topic: well-informed employees are better able to identify phishing emails, social engineering attempts, and other tactics used by impersonators.

As highlighted in an article from Olhar Digital based on data from Mastercard/Datafilha, although 84% of Brazilian companies consider digital protection “very important”, many still fail to prioritize it in practice, resulting in a high frequency of scams.

For this reason, training should cover the identification of suspicious communications, the importance of strong and unique passwords, and the procedures for reporting questionable activity.

Remember: a conscientious team is a powerful asset in preventing the success of impersonation scams.

Implement internal protection policies

In addition to awareness, it is necessary to establish robust and clear internal policies that define how to handle sensitive information and potential threats of impersonation scams.

This includes guidelines on data sharing, use of company devices, mandatory two-factor authentication (MFA), and formal processes for verifying unusual requests (especially financial ones, to combat CEO/BEC scams, a form of executive impersonation).

Having well-defined policies not only guides employees on the right actions, but also creates a governance structure that strengthens the company's overall security posture against impersonator tactics.

These policies must be communicated regularly and be part of the integration of new employees, reinforcing the culture of safety against the act of impersonating.

Monitor and protect your social networks

Social networks are fertile ground for impersonation scams, especially brand impersonation and executive impersonation. It's for this reason that impersonators create fake profiles to deceive clients, spread misinformation, or carry out scams.

To defend your business, therefore, it is essential to actively monitor platforms such as Instagram, Facebook, LinkedIn, X, etc., in search of accounts that are impersonating your brand or leaders. This includes verifying similar usernames, unauthorized use of your logo, and suspicious posts. However, in addition to monitoring, it is necessary to have an agile process to report and request the removal of these fake profiles from the platforms.

Specialized services, such as those from Branddi, automate and scale this monitoring and takedown, ensuring a quick response against impersonation scams on social networks.

Investigate incidents quickly

When an impersonation scam is detected, the speed of the response is decisive in mitigating the damage. After all, the longer one Fake profileIf a phishing site or fraudulent advertisement remains active, the greater the number of potential victims and the greater the negative impact on your brand.

In other words, a quick investigation to confirm the threat and immediate action to request removal (takedown) are essential. That's because delays can result in greater financial losses, more extensive reputational damage, and even legal complications.

This is where Branddi's agility and expertise become a differential: our team and technology are designed to identify and act against impersonators and impersonating acts with maximum efficiency, minimizing the exposure window and the serious consequences of these scams.

Shield your brand against impersonation scams with Branddi!

At Branddi, we defend your identity against impersonators who practice the act of impersonating your online business. This is due to 24/7 monitoring by AI and dedicated specialists, who quickly identify and remove fraudulent content and profiles on all digital platforms - from monitoring to takedown, in a complete and unlimited way.

Our goal is to neutralize impersonation scams, reducing your risks, protecting your clients, and preserving the reputation you've built: trust Branddi's armor marketing to be your shield against these digital threats!