The counterfeit watch industry has entered a new era of sophistication, with high-end replicas now capable of fooling experienced watch professionals and, in one case, staff at a Rolex store, according to a new investigation.
The investigation, published 19 August, saw WIRED reporters purchase three counterfeit Rolex watches from online dealers for a combined $USD1,704. The watches were ordered through encrypted messaging channels, paid for using cryptocurrency, and subjected to quality-control checks by members of online replica-watch communities before being shipped to the buyer.
One of the watches was subsequently taken to a Rolex store in London, where staff examined the timepiece and adjusted its bracelet without identifying it as counterfeit.
These watches are produced by factories in China and sold through a network of online dealers, showing how far counterfeit manufacturing has progressed beyond the inexpensive imitations traditionally associated with tourist markets.
According to the report, the so-called ‘super clones’ can replicate minute details of genuine watches, including movements, bracelet mechanisms and anti-counterfeiting features. A watch expert, Adrian Hailwood, found several flaws in the replicas, including poorly finished components and incorrect movement architecture. However, even these weaknesses are becoming harder to detect.
Hailwood told WIRED that counterfeiters have begun incorporating free-sprung balances into clone movements, removing a traditional way to distinguish a replica from a genuine Rolex movement. The investment involved suggests the industry is increasingly characterised by sophisticated, high-volume manufacturing rather than small-scale workshops.
The investigation also highlights the wider economic consequences. An OECD report estimated the global counterfeit-goods trade was worth $USD467 billion in 2021. Watches ranked fifth among counterfeit goods by quantity - but first by value.
Counterfeit watches are also entering the legitimate secondary market, used in bait-and-switch schemes targeting consumers and pawnbrokers.
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