Since January 1996
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Supply Chain Fraud Examples
There have been a lot of cases in the news
regarding tainted and recalled products. While the media has not
classified these as such, they are all excellent examples of supply
chain frauds. Some of the more notable cases are:
Recalled
vehicle tires
Tainted pet foods
Tainted toothpaste
Unsafe foods (peanut butter, canned seafood, etc.)
Toys with lead paint
Toys with small parts that are choking hazards
Baby cribs with latch flaw designs
Grout sealer not pulled from shelves despite causing illness & death
Attempts to outsource military night-vision goggle manufacturing
The causes of supply chain fraud include
and are not limited to:
Bribery from suppliers
Kickbacks from sales people
Revenge against the company by an employee, contractor, customer,
competitor, or supplier
Financial deception against stock price
Corporate cost-cutting to boost stock price, increase executive bonuses,
reduce cost-of-goods-sold, increase revenue, etc.
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The failure to detect & reduce fraud
across the global supply chain is a very big gamble.... and you could
lose more than just your shirt!
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