[Survey Report] 95% of Users Express Concern Over Counterfeits and Fraud in Secondary Markets

Startbahn conducted a user survey among 211 product users regarding awareness and experiences of counterfeit goods and fraud during product purchases. The results revealed that approximately 40% of respondents expressed concern over counterfeit or fraud risk in primary markets, while nearly 95% did so for secondary markets, highlighting strong user sensitivity toward risks—particularly in resale and secondhand channels.
When asked about effective solutions to counter these risks, the most selected option was a certificate issued directly by the creator or brand, accounting for nearly half of all responses. Moreover, when asked about the usefulness of technologies like IC chips and blockchain, 82% of users responded that they were either “very effective” or “somewhat effective,” indicating strong expectations for technology to play a role in fraud prevention.

■ Survey Overview

• Survey Period: November 19–21, 2024
• Respondents: Users of Startrail PORT or FUN FAN NFT
• Valid Responses: 211
• Method: Online survey
  
  
  ■ Key Findings
  
  To what extent do you worry about the risk of counterfeits or fraud when purchasing product?
  
  Mid-priced items ($10's to $100's):
  

High-priced items ($500+):


Regardless of price range, approximately 95% of respondents selected either “very concerned” or “somewhat concerned” when it came to secondary distribution channels (such as resale markets or other non-direct purchase routes). In contrast, this number drops by half to around 40–50% for primary distribution channels (direct purchases from creators or brands), indicating that whether or not a product is purchased directly from the producer has a significant impact on users’ risk perception.

Differences in concern based on price range were minimal in primary distribution, but in secondary distribution, the percentage of respondents who were “very concerned” rose to 82% for high-priced items, markedly higher than the 59% for mid-priced items.

Have you ever experienced fraud or trouble involving counterfeit goods when buying or selling products?


15% of respondents answered that they had experienced such issues. Free-text responses indicated that many of these incidents occurred in online transactions, with examples such as:

“I was sold counterfeit sneakers on an e-commerce site.”

“I bought an item on a flea market platform, but when I tried to resell it later, it turned out to be fake and caused problems.”

What countermeasures or services do you believe are effective in preventing fraud and counterfeit-related issues?


The most selected option was “a certificate issued directly by the creator or brand,” accounting for 45% of responses. This was followed by “authentication by a third-party organization” at 28%. Meanwhile, “user screening/authentication by services or platforms” and “user reviews and ratings from other users” combined accounted for only 24%, indicating that many users place the greatest trust in authentication directly from the creator or brand.

Do you believe technologies like IC chips and blockchain are effective in preventing fraud or counterfeit-related issues?


82% of respondents answered either “very effective” or “somewhat effective,” showing strong expectations for technology as a preventive measure.

Reasons provided included:

“Important product data should be recorded on a decentralized ledger that doesn’t rely on a single platform.”

“IC chips might be forged, but at the very least, data recorded on the blockchain cannot be tampered with.”

These comments reflect high expectations for the decentralization and tamper-resistance of blockchain technology.


■ Summary

The survey clearly shows that users are highly sensitive to counterfeit and fraud risks, particularly in secondary markets, and that there is strong interest in blockchain and IC chip-based solutions for prevention.

In response, Startbahn will continue enhancing its technologies and services that support authenticity and trust in the distribution of products and artworks using Startrail and related tools.

While this survey was limited to Startbahn product users, we plan to expand future research to include broader user segments for a more comprehensive understanding of market needs.

For full survey results, see our note:
https://note.com/startbahn/n/n496234384858


■ About Startbahn, Inc.

Startbahn provides essential technology for artists and everyone involved in the art ecosystem, striving to build a more enriched society. We develop and operate Startrail, a blockchain infrastructure for ensuring authenticity, provenance, and long-term value of artworks.

Official Site: https://startbahn.io/


■ About Startrail

Startrail is a blockchain infrastructure built by Startbahn to preserve the reliability and authenticity of artworks and ensure value continuity. NFTs issued via Startrail can record details such as issuer info, exhibitions, trades, restorations, and appraisals. Terms of resale or reuse are preserved across services. All records are tamper-proof, immutable, and transparent.

It supports physical works (paintings, sculptures), digital media (images, video, sound), and installations.

Official Site: https://startbahn.io/startrail


■ Contact

Startbahn, Inc.
PR Department
pr@startbahn.jp