In fact, just about any component that can be manufactured can also be counterfeited—from tubes of toothpaste to parts for cars to aerospace equipment. The annual loss? $350 billion. Not to mention the risk to people's lives when critical elements of a product are replaced with fakes.
What would you do if your organization
experienced a breach in security?
Are you prepared to move to action and
put a plan in place?
More important, are you equipped to prevent
such a breach from ever tarnishing your
reputation and putting your customers at risk?
Consider the top threats and consider the areas in your organization that could be vulnerable to today's more popular types of fraud.
When a product leaves the primary supply chain and re-enters it somewhere else for illicit sale, you lose revenue and risk tainted or expired product, that bears your brand, finding its way to end customers. Diversion can include illegal, unreported product over-runs sold out the back door, expired goods slated for return that are instead re-routed and sold by unapproved vendors, and internal theft.
This type of fraud not only erodes profits, but can damage brand equity and increase liability because phony products bearing your brand may be of poor quality or have dangerous components. Counterfeiting can include copying of supply chain documents, creation of fake products, and duplicating documents with intrinsic value, like checks, coupons, etc...
This $30 billion dollar criminal industry involves stealing products from retail outlets, often with the help of internal employees.
When products are shipped across a long and circuitous route, the door is open to opportunistic thieves. Products can be stolen and sold
on the black market and your
packaging may be the only
means of tracing where
they've been taken.