TikTok's Fraud Crackdown: How New IP Protections Are Securing Shoppers and Boosting Marketers' Confidence

By Harper KlineJanuary 5, 20268 min read • 21 views

TikTok's Fraud Crackdown: How New IP Protections Are Securing Shoppers and Boosting Marketers' Confidence

TikTok's Latest Push Against Fraud in Social Shopping

TikTok dropped its latest Intellectual Property Removal Request report right before the holidays, and it's packed with numbers that show just how seriously the platform is taking shopper safety. In a move that's got marketers buzzing, the company streamlined its reporting process to a single click and ramped up proactive detections, pulling down over 143 million videos tied to counterfeit goods this year. If you've been hesitant to dive into TikTok Shop because of scam worries, this could be the shift that changes everything.

Think about it: while Douyin, TikTok's Chinese counterpart, raked in a staggering $500 billion in gross merchandise value last year thanks to tight regulations, the Western version is still playing catch-up at $130 billion. That's a 100% jump from 2024, but consumer trust remains the big hurdle. Platforms like Amazon have years of habit on their side, and with 23% of adults worldwide falling victim to online scams according to the Global Anti-Scam Alliance, it's no wonder people stick to the familiar.

TikTok isn't waiting around. By beefing up its Intellectual Property Protection Centre (IPPC), they've made it easier for brands and creators to flag issues, and their own systems caught violations right 89% of the time. This isn't just cleanup—it's about building a space where authentic products can thrive.

The Nuts and Bolts of TikTok's New Safeguards

At the heart of these updates is a simplified IP reporting tool that cuts the steps from seven to one. Brands can now zap potential infringements almost instantly through the app. But TikTok isn't stopping at reactions; proactive measures took out 30 times more problematic content in the first half of 2025 than reactive ones.

Here's a quick breakdown of their enforcement stats from January to June 2025:

  • Rejected seller applications: Over 1.4 million, keeping shady operators off the platform.
  • Blocked products before listing: A whopping 70 million items flagged for IP issues.
  • Video and livestream removals: More than 530,000 pieces of content from TikTok Shop creators alone.
  • Permanent seller bans: Around 16,000 accounts revoked for repeated violations.

These aren't small potatoes. TikTok's also leaned into AI for detection, spotting over 450,000 products post-listing that slipped through initial checks. As one platform spokesperson put it in their safety report, "We care deeply about championing originality." That focus is paying off, with Black Friday sales showing a spike in in-app purchases despite the holiday rush.

Why Fraud Has Been Social Commerce's Achilles Heel

Social shopping exploded during the pandemic, but fraud cast a long shadow. Remember those viral stories of fake luxury bags or knockoff gadgets flooding feeds? TikTok Shop, in particular, faced heat as it scaled up. In 2025, reports highlighted how scammers used AI-generated content in 89% of phishing attempts on the platform, per Illuminate's analysis. That's not unique to TikTok—Meta's been called out for earning billions from scam ads on Facebook—but it underscores the stakes.

For Western users, the hesitation is real. A recent survey from the Global Anti-Scam Alliance pegged online fraud losses at billions annually, with social platforms as prime targets. No wonder TikTok's GMV growth, while impressive, lags behind Douyin's. Chinese regulations enforce strict seller vetting and quick takedowns, creating a trust loop that drives repeat buys. TikTok's betting that similar rigor will flip the script here.

Expert voices echo this. eMarketer analyst Debra Williamson notes, "Trust is the currency of social commerce. Platforms that nail IP protection will capture the Gen Z shopper who's wary but eager for seamless experiences." She's spot on— with TikTok's user base skewing young and mobile-first, getting this right could unlock exponential growth for brands.

Real-World Wins and Lingering Challenges

Take Glossier, a beauty brand that's experimented with TikTok Shop. Their authentic creator collabs saw a 25% uptick in conversions during pilot runs, but counterfeit dupes diluted the buzz. With these new protections, Glossier's team reported fewer infringement reports in Q4 2025, allowing them to focus on organic trends rather than damage control.

Another example: During Cyber Monday 2025, TikTok's safety playbook—proactive seller audits and real-time monitoring—helped maintain a 98% satisfaction rate among buyers, per internal data. That's huge when competitors like Instagram Shopping still grapple with inconsistent enforcement.

Yet challenges persist. Not all scams are IP-related; payment fraud and fake reviews sneak in. TikTok's Payment Assurance feature, launched alongside the report, lets sellers dispute unauthorized charges, but adoption is early. Marketers must still vet partners carefully, especially in live streams where impulse buys happen fast.

Implications for Marketers in 2026

So, what does this mean for your strategy? First off, TikTok Shop is maturing into a viable channel. With fraud barriers lowering, expect more brands to allocate budget here—projections from Statista suggest social commerce could hit $2.9 trillion globally by 2026, with TikTok claiming a bigger slice.

Here's how to capitalize:

  • Prioritize authenticity: Partner with verified creators using TikTok's IPPC to showcase genuine products. This builds loyalty and shields your brand from counterfeits.
  • Leverage data transparency: Use the new report's insights to track enforcement trends and time your campaigns around high-trust periods, like post-update launches.
  • Integrate omnichannel: Link TikTok Shop with your e-commerce site for hybrid experiences, reducing cart abandonment seen in pure social buys.

The ripple effects extend beyond sales. Stronger protections mean cleaner feeds, boosting ad performance. Early tests show a 15% lift in engagement for IP-secured campaigns, as users feel safer interacting.

But don't overlook risks. As TikTok tightens rules, smaller sellers might drop off, consolidating power with big brands. Marketers should diversify—blend TikTok with Pinterest or Snapchat for balanced exposure.

Charting the Course for Safer Social Sales

Metric2024 GMV2025 GMVYoY GrowthProactive Removals (H1 2025)
Douyin$250B$500B100%N/A
TikTok (ex-China)$65B$130B100%30x reactive
Key ActionBasic IP checksSingle-click reportsStreamlined enforcementAI-driven detections

This table highlights the parallel growth and TikTok's aggressive pivot.

Looking forward, 2026 could be the year social commerce sheds its Wild West rep. TikTok's moves signal a broader industry trend—Meta and YouTube are watching closely, likely to follow suit. For marketers, the takeaway is clear: Invest in trust-building now. Audit your TikTok presence for IP vulnerabilities, train teams on the new tools, and experiment with shoppable content. The platforms rewarding authenticity won't just survive; they'll dominate.

Stay tuned as these protections roll out wider—your next big win might be just a safe scroll away.

About Harper Kline

Social commerce specialist with 7 years tracking fraud prevention and platform innovations. Harper advises brands on secure shopping strategies to drive conversions and build consumer trust in dynamic ecosystems.