A bottle fraud system and method encapsulates a wireless communication tag into a bottle to ensure the authenticity of the bottle. The tag stores information about the bottle. The tag is physically integrated into a bottle stopper through encapsulation by multiple layers of a polymer film and a wax composition. The physical condition to the bottle stopper or the layers serves as an indication of whether tampering has occurred. The information in the tag is accessible through a reading device. The reading device communicates with a database that stores information about the bottle and analyzes the probability of fraud with an algorithm. The algorithm analyzes the information about the bottle, such as shipping history, contents and location, to predict whether fraud is likely. Thus, both the physical condition of the bottle, and the predictive capacity of the algorithm help detect fraud on the bottle.