According to the World Health Organization (WHO), counterfeit pharmaceuticals are responsible for a significant number of deaths each year, particularly in developing countries.
Preventing Counterfeiting and Fraudis a pressing issue for many industries be it retail, supply chain, manufacturing, or healthcare. More so in healthcare where countless lives are at stake. Counterfeited medicines, vaccines, medical instruments can cause a lot of trouble for healthcare industry. From allergic reactions due to counterfeited medication to misdiagnosis of patients due to faulty medical instruments, the prospects are as bad as it gets.
Keeping this in mind, manufacturers and suppliers need to assign certain identification numbers that ascertain the genuineness of the said products. RFID can help in this regard. Not only with preventing the counterfeiting and fraud but it also provides an opportunity for businesses to prepare better for such challenges in the light of changing business landscape and emergence of new varieties of misadventures.
The problem of counterfeiting and fraud
Counterfeiting and fraud are serious issues that affect a wide range of industries, from pharmaceuticals and consumer goods to electronics and luxury products. These illicit activities not only harm legitimate businesses and their customers, but can also pose serious health and safety risks, as counterfeit products may not meet quality and safety standards as stated above. As per a January 2023 report by ET Retail, 25%-30% products sold in India are counterfeit. However, more surprisingly, 27% of the consumers are totally unaware that they buy fake products while 31% don't care and intentionally buy counterfeit products.
RFID for Preventing Counterfeiting and Fraud
The role of RFID technology in preventing counterfeiting and fraud is becoming increasingly important in today's global marketplace. As the market for counterfeit products continues to grow, companies that implement RFID-based solutions will be better positioned to protect their brand reputation, ensure product safety, and comply with regulatory requirements. Various fashion and luxury retail brands are now tagging their high-end merchandise with small RFID chips to prevent counterfeiting and allow the consumers to self-authenticate their products before they buy it.
RFID and Barcodes
RFID is a wireless AIDC technology that can identify products, wirelessly, with the use of RFID tags encoded with certain specific identification details. Whenever an RFID tagged item is in the range of an RFID readers, the reader can communicate with the RFID tag using radio frequency wave signals.
RFID technology allows for unique identification and tracking of products by attaching RFID tags or labels to individual items or batches. This provides a secure and tamper-proof method of tracking products through the supply chain, from manufacturer to distributor to end-user. By leveraging the power of RFID, businesses as well as customers can monitor the authenticity and integrity of their products, and quickly identify any instances of counterfeiting or fraud.
Since passive UHF RFID tags are very efficient and cost effective for use, RFID tags can benefit many small as well large scale businesses in their fight against counterfeiting and fraud.
Use of barcode and QR codes is also done as traditional tagging means but barcode is not as efficient when it comes to item tracking and large scale scanning of assets. Barcode technology uses optical laser scanners and it needs to be in the clear line of sight with the barcoded products while scanning, which is why, it requires a lot of manual labour, hurting small businesses and large ones as well.
How to use RFID for Preventing Counterfeiting and Fraud?
If you are thinking of using RFID technology to prevent counterfeiting and fraud, here are some steps involved as follows:
a) Attach RFID tags or labels to individual products or batches during manufacturing.
b) Use RFID readers to track and authenticate products as they move through the supply chain.
c) Implement secure data management systems to store and manage RFID data.
d) Use data analytics tools to monitor and analyze RFID data for signs of counterfeiting or fraud.
e) Take corrective action when necessary, such as recalling counterfeit products or working with law enforcement to investigate fraudulent activity.
RFID technology, if used correctly, can solve many operational challenges and bring transparency in manufacturing and supply chain. It can help create value, build customer loyalty and drive growth as well. With the help of RFID tags and small RFID Chips, brands can tag their products and ensure that consumers have the authentic products. With dual frequency RFID tags, RAINFC chips, it is now possible to scan these tags with a smartphone, making it easier for the customers to self-verify the authenticity of a product. Apart from retail, it has the biggest benefit in healthcare, saving lives and ensuring patients get genuine medicines and vaccines.
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