The problem of counterfeit luxury goods costs the world hundreds of billions of dollars: every year global brands lose more than $30 billion to counterfeiting, while on the growing resale market the volume is about $210 billion – buyers have no reliable way to verify the authenticity of their purchases. The startup Veritas offers a solution that combines hardware and software to address both problems at once.
The company claims to have developed a chip that they call “hack-proof” and that cannot be bypassed by devices such as Flipper Zero – a well-known hacking tool capable of manipulating wireless systems. These chips are linked to digital certificates to confirm the authenticity of products.
Veritas founder Lucy Holland combines technical approach with artistic vision. She has worked in a variety of artistic environments, including mixed-techniques painting and metal sculptures. She also worked at Tesla as a technical product manager and has held several roles in business development, community growth, and product management in tech companies and venture funds.
Holland noted that traditional luxury goods manufacturers typically use various symbols or physical marks for authentication. However, rising demand allows counterfeiters to create convincing copies of these markers along with high-quality counterfeit certificates. Such goods are often called “superfakes.”
Holland recalled that she spoke with maisons – renowned houses of haute couture – who reported that some of their locations had to stop authenticating goods because counterfeits were becoming too convincing. She emphasized that by combining experience in the technical and artistic worlds, she aims to solve this problem.
“When I think about counterfeits and the most prominent and enduring brands, many of them have existed for more than a hundred, and some for one hundred and fifty years. Such brands deserve the most modern protection to preserve their designs,” added Holland.
How Veritas’ solution works
Veritas works with various designers to create a chip that minimally disrupts the production process. The chip is rice-grain-sized and can be inserted even after the product is manufactured, without compromising its integrity. The chip uses NFC – Near Field Communication – the same wireless technology used in contactless payments. This means you can tap your smartphone to the item to verify its authenticity.
Holland noted that to increase security the startup developed a special coil and housing structure. If someone attempts to counterfeit the product, the chip switches to inactive codes and hides data related to the product. The software component is linked to Veritas’ backend, which monitors scanning behavior and prevents fraud. The company also creates a digital copy of the product using blockchain technology for potential exhibitions or activities in the metaverse.
The company has not disclosed who exactly it collaborates with, but brands have access to its software suite to obtain data on all chipped goods, add team members to manage items, and input information together with product history – details that can also be used to interact with their community. Some partners use this to provide exclusive invitations or early access to new collections.
Although the counterfeit market is large, Holland is convinced that the market also needs education on why reliable technical solutions are needed.
Veritas reported raising $1.75 million in a previous round from investors, including notable industry names. The company plans to use the funds to expand the team and further develop the product.
Veritas aims to transform the reality of the luxury market through close integration of the chip with digital certificates, backend analytics, and blockchain to make counterfeiting harder to realize and to provide consumers with reliable authentication. By 2026, in this fight for transparency, a synergy of technology and consumer education is needed.