[co-author: Allessia Chiappetta]

The College of Patent Agents & Trademark Agents (CPATA) recently issued an alert regarding a surge in fraudulent emails targeting trademark owners. As is typical of these “phishing” scams, the emails often pressure recipients to act quickly or face severe consequences. These phishing scams are becoming increasingly sophisticated, leveraging public records to appear legitimate and convincing recipients to make payments, or reveal sensitive information.

This article outlines the nature of these scams and the tactics cyber-criminals are using to manipulate victims, and includes essential tips on protecting yourself and your business.

The rise of phishing scams among intellectual property owners

Phishing scams have emerged as a significant threat to intellectual property owners. They often appear as legitimate communications from trusted entities like trademark protection agencies, intellectual property attorneys, or even intellectual property offices (such as the Canadian Intellectual Property Office (CIPO) or the U.S. Patent and Trademark Office (USPTO)). The perpetrators exploit public records to create credible-looking emails that falsely warn of immediate legal threats or financial penalties, urging recipients to act without first seeking proper verification.

How the scam works

In most instances, cyber-criminals prey on the anxiety and vulnerability of business owners by sending urgent emails claiming that their trademark is not properly protected or registered. These emails often state that another person is attempting to register the recipient’s mark, necessitating immediate action.

There are two common methods employed in these phishing scams:

1. Urgent threats: the email may claim that if the trademark owner does not respond within 24 hours, they risk forfeiting the legal rights to their mark. The message may warn that failure to act could result in lawsuits with substantial potential damages (a commonly seen example includes a claim as high as $750,000 USD).
2. Pressure to act: the email may include contact information and urge the owner to use the sender’s “business services” to resolve the issue promptly. If the first email is ignored, the owner may receive a follow-up email labelled as a “final attempt to contact you,” again emphasizing the need to act immediately.

These tactics are designed to create panic and prompt hasty decisions without proper verification.

How to avoid phishing scams

To safeguard your business against these sophisticated phishing scams, consider the following precautions:

• Be wary of urgent emails: emails that create a sense of urgency, especially if unexpected, are often fraudulent. Check the sender’s email address carefully for legitimacy, and be cautious of poor grammar, typographical errors, suspicious links or attachments.

• Protect your information: never share sensitive business or financial information with unknown entities. If someone demands such information urgently, stop any further communication with them and verify their claims through official channels.


• Verify information independently: if you receive an email about your trademark, visit the CIPO or USPTO website to check the status of your mark, or consult a trusted trademark lawyer or agent to verify the information.


• Watch for CIPO or USPTO impersonation: scammers may use publicly available information to impersonate intellectual property offices. Neither CIPO nor the USPTO will ever ask you for payment, or personal or financial information, via email, phone or text.

Conclusion

Phishing scams targeting trademark owners are on the rise, and it is necessary to remain vigilant.
To protect your intellectual property and avoid falling victim to these scams, be cautious of urgent or unsolicited messages, safeguard your sensitive information and independently verify any trademark-related communications. When in doubt, contact a trusted trademark professional before responding to any suspicious correspondence.

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