The year 2024 delivered many firsts, such as the debut of breakdancing as an Olympic sport, the first female president of Mexico and the launch of digital currency regulations. In Australia, it was also the year of the first known case of a sophisticated trade mark email scam.
In this scam the perpetrators targeted holders of trade mark rights by impersonating legitimate trade mark lawyers and emailing false claims to recipients about the imminent loss of their trade mark rights – unless they took immediate action to “protect” their intellectual property (IP) rights, which inevitably involved a payment to the scammers.
Unfortunately, since 2024 there has been a surge in these scams, with an ever-increasing volume of fraudulent communications sent to trick recipients into taking unnecessary and expensive action such as filing and paying for unnecessary trade mark applications or for ones that will not be filed at all, in a misled attempt to protect their IP rights.
Did you know that in 2024, there were 250,000 scam reports across Australia, with reported financial losses exceeding $318 million? The top scam method used was emails, with over 90,000 emails reported.*
Often these emails come from entities that call themselves something akin to Trademark Registry Hub, Register Your TM or another generic name. However more recently, these scams have become even more sophisticated, with senders impersonating actual law practices or individual practitioners.
What are the most common intellectual property scams?
There is a wide array of scams across the internet, however the most common IP scams are:
- Misleading Invoices. Here scammers send official-looking communications and invoices that request payment for IP-related services such as registration, publication, or monitoring, all of which are either unnecessary or non-existent.
- Phishing Emails. These fraudulent emails impersonate official organisations, such as WIPO (the World Intellectual Property Organisation), and aim to obtain personal or financial information. They often include links to fake websites which then capture the recipient’s data.
- Spoofed Emails & Calls: Here the scammers call or email pretending to represent official intellectual property offices, pressuring recipients into making immediate payments or sharing confidential information.
How can you identify a scam email?
As these scams become more sophisticated it becomes equally as difficult to distinguish truth from fiction. However, to better protect yourself against the continual incoming wave of deceptive communication there are several warning signs that can help you identify a scam email such as:
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- The use of urgency tactics such as the threat of losing your IP rights unless you act swiftly to protect your trade mark;
- False and confusing information such as long-winded wording and spelling mistakes such as the words ‘trade mark’ being written as one word ‘trademark’ as is common in countries other than Australia;
- Emails that come from unfamiliar, generic or oddly named or spelled domains;
- The sender demands immediate action or payment;
- Requests of personal information without proper verification;
- Fake letterheads or addresses within the email or attachments;
- The fact that it is an unexpected invoice or payment request, especially if you haven’t had any contact;
- Claims from the sender that they are associated with government departments; and
- Formatting and watermarks to make it look like the advice is from IP Australia.
In more sophisticated scams where the sender utilises the real name of a registered lawyer, the name may have a slight misspelling or may not match the name of the law practice that employs the individual. In addition, it is worth noting that legitimate trade mark professionals do not typically reach out to businesses without prior engagement.
Furthermore, law firms don’t often send communications around IP enforcement or renewal from unofficial channels – it always comes from a verified email address (For example: our emails come from name@antcliffescott.com)
International IP scams
Quite often these scam emails purport to be from an overseas lawyer who informs you that someone has applied to register your trade mark in another country, with the offer to provide their services to oppose the impending registration. In these situations, if you are concerned about either the validity of this email or your IP rights in another country, it is astute to seek professional local legal advice before taking any action.
How to protect yourself against these scams
The prevalence and increasingly sophisticated nature of these email scams means it is imperative to always remain as vigilant as possible and implement a few steps that will help minimise the risk of succumbing to one of these emails that may result in financial loss or compromised IP rights.
Listed below are some tips to help you better protect yourself and your business against scammers:
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- Be wary of any red flags in trade mark communications such as urgent deadlines, large financial penalties, or the threat of another party planning to file a trade mark similar to yours;
- Educate your team members and ensure they are aware of these scams and know how to identify a scam communication;
- Always perform due diligence and verification before you pay an invoice: check the official website, call the listed number, spot any oddities in the invoice;
- Check the credentials of lawyers before you hire them. Use the Trans-Tasman IP Attorneys Directory to search for registered professionals;
- Thoroughly verify sender email addresses, especially those that closely reflect legitimate ones but differ by a letter or display a small change to the domain spelling;
- Do not reply to any suspicious emails; and
- Whether it is a scam phone call or email, do not engage with the scammer or provide any personal or financial information.
Most importantly, it is vital to stay informed and vigilant so you can better protect yourself against these scams. However, in order to best safeguard your brand and business, it is essential to have legitimate IP protection. Whilst it is ideal to register your IP in the early stages of business, given the pervasiveness of scams, the other ideal time is now. Taking a few steps to protect your IP will afford you the peace of mind you deserve knowing that your brand and business is safe for today and set for the future.
If you have any questions or concerns, feel free to contact us at Antcliffe Scott, we’d be more than happy to help.
*Source: ACCC Scamwatch