This paper presents the various ways that lithium-ion batteries are being counterfeited, the problems that counterfeit batteries present, how they enter the consumer market, and the difficulties of detection. Simple external visual inspection of the battery is unreliable. As shown in the presented case study, even for the same brand batteries, their internal structures are different. The current counterfeit prevention methods focus on the manufacturing step. To reduce the risk of counterfeit batteries, device manufacturers and retail stores should characterize the batteries they receive. In addition, related authorities or organizations should set standards to enable a universal battery tracking method along the supply chain to prevent counterfeit lithium-ion batteries from entering the market.