PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Machine Learning Startup Can Detect Counterfeit Products

By Tim Sloane
August 14, 2017
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Financial Technology concept on the gearwheels, 3D rendering

Financial Technology concept on the gearwheels, 3D rendering

Street vendors beware, Entrupy Inc., a spinoff from NYU, has a device designed to detect counterfeit clothing:

“The work, led by New York University Professor Lakshminarayanan Subramanian, will be presented on Mon., Aug. 14 at the annual KDD Conference on Knowledge Discovery and Data Mining in Halifax, Nova Scotia.

“The underlying principle of our system stems from the idea that microscopic characteristics in a genuine product or a class of products—corresponding to the same larger product line—exhibit inherent similarities that can be used to distinguish these products from their corresponding counterfeit versions,” explains Subramanian, a professor at NYU’s Courant Institute of Mathematical Sciences.

The system described in the presentation is commercialized by Entrupy Inc., an NYU startup founded by Ashlesh Sharma, a doctoral graduate from the Courant Institute, Vidyuth Srinivasan, and Subramanian.

Counterfeit goods represent a massive worldwide problem with nearly every high-valued physical object or product directly affected by this issue, the researchers note. Some reports indicate counterfeit trafficking represents 7 percent of the world’s trade today.
While other counterfeit-detection methods exist, these are invasive and run the risk of damaging the products under examination.

The Entrupy method, by contrast, provides a non-intrusive solution to easily distinguish authentic versions of the product produced by the original manufacturer and fake versions of the product produced by counterfeiters.

It does so by deploying a dataset of three million images across various objects and materials such as fabrics, leather, pills, electronics, toys and shoes.

“The classification accuracy is more than 98 percent, and we show how our system works with a cellphone to verify the authenticity of everyday objects,” notes Subramanian.

A demo of the technology may be viewed here (courtesy of Entrupy Inc.).”

Based on the title of the paper “Fake vs Real Goods Problem: Mirosocopy and Machine Learning to the Rescue” the specialized camera used to scan products magnifies the materiel. Reading the article and reviewing the YouTube video it is unclear how many attributes are captured an so it is impossible to tell for instance if it would detect a counterfeit made from left over or stolen materiel from the manufacturer. How the company received 3 million images of different products is an interesting business question. Also interesting is the fact that machine learning tools don’t discriminate objects the same way humans do (as identified in Mercator’s soon to be released Report “Bringing AI Into the Enterprise; A Machine Learning Primer”), so it’s difficult to say how easily criminals might be able to fool this system. Of course this tool will enable more untrained people to detect counterfeit products which is good. No pricing information was released relative to training or detecting, so efficacy and efficiency are both in question.

Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group

Read the full story here 

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Fraud Risk and AnalyticsMachine Learning

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    ai phishing

    The Fraud Epidemic Is Testing the Limits of Cybersecurity

    February 6, 2026
    stablecoins b2b payments

    Stablecoins and the Future of B2B Payments: Faster, Cheaper, Better

    February 5, 2026
    Payment Facilitator

    The Payment Facilitator Model as a Growth Strategy for ISVs

    February 4, 2026
    Simplifying Payment Processing? Payment Orchestration Can Help , multi-acquiring merchants

    Multi-Acquiring Is the New Standard—Are Merchants Ready?

    February 3, 2026
    ACH Network, credit-push fraud, ACH payments growth

    What’s Driving the Rapid Growth in ACH Payments

    February 2, 2026
    chatgpt payments

    How Merchants Should Navigate the Rise of Agentic AI

    January 30, 2026
    fraud passkey

    Why the Future of Financial Fraud Prevention Is Passwordless

    January 29, 2026
    payments AI

    When Can Payments Trust AI?

    January 28, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result