Supply Chain Fraud - Slide - Receiving Frauds

Receiving frauds can be done independently or in collusion with the supplier.

Independently, a receiver may falsify receiving documents and information in order to pocket some of the inbound items, which he will sell later and pocket the gain.

In collusion with the supplier, the receiver may falsify receiving documents and information to cover for shortages in the supplier’s shipments. (Item-substitution fraud is also possible here, though probably less likely, as it would be more difficult to cover up at inventory time.)

The supplier would likely provide a bribe or kickback to the receiver for these services.

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