IEEE Access, Preprint, April 22, 2019, DOI: 10.1109/ACCESS.2019.2912334

Breaking the Trust: How Companies Are Failing Their Customers

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


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.

This article is available online here.

[Home Page] [Articles Page]
Copyright © 2019 by CALCE and the University of Maryland, All Rights Reserved