Lidia M. Al-Zogbi 1, Diganta Das 1, Peter Rundle 2, and Michael Pecht 1
1 CALCE, Center for Advanced Life Cycle Engineering, Department of Mechanical Engineering, University of Maryland, College Park, Maryland 20740, USA
2 Rundle Law Corporation, 38 Corporate Park, Irvine, CA 92606-5101 USA
Abstract:
When numerous well-known suppliers and original equipment manufacturers engage in
deceptive practices, including falsifying product data or neglecting to report known defects, the fundamental
question that arises is whether any claim from any company can be trusted. This paper sheds light on the
importance of tackling supply chain fraud more rigorously. The paper discusses the current state of supply
chain complexity and customer practices, then highlights the prevalence of fraud and its impact on all
consumers. Examples of renowned companies that have either publicly acknowledged fraudulent practices,
or were caught in some level of deception in their supply of products, are provided. Examining the different
instances of fraud enabled us to identify cost reduction as a conjoint recurring cause, which formed the
baseline to develop and suggest guidelines for fraud detection and risk mitigation.