Supply Chain Fraud - Slide - Picking and Return Frauds

In picking frauds, too much of an item may be purposefully picked, or the wrong item may be purposefully picked.

In picking too much of an item, the picking employee may be pocketing the item for sale later. The correct quantity of the item is packed, but the picked overage is pilfered by the picker.

Picking the wrong item on purpose is probably part of a scheme with the customer; the customer receives the wrong item and demands a credit or shipment of the correct item without ever sending the incorrect item back, offering a payoff to the picker who can probably also ensure that records are falsified or overlooked so no one notices that the customer never returned the incorrectly picked (and shipped) item.

Even if the incorrectly picked item is returned, the picker, or another inside person, may pilfer the returned item and either never record the return, incorrectly status the returned item as damaged and not sellable (thus writing it off), or the returned item is pilfered and the return (inventory) records are falsified.

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