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As the error suggests, make sure that you are using the correct signer when sending the tx.

By default, the .rpc method uses the local Solana ~/.config/solana/id.json wallet to sign for transaction.

Check that it is similar to the wallet signer you are using.

If different, you can first convert the method call into a transaction and sign it

await program.methods
    .increaseCounter(new BN(1))
    .accounts({
        counter: counterPda,
        authority: wallet.publicKey,
        system_program: SystemProgram.programId,
    })
    .transaction();

await signTransaction(tx);