"The Numbers Crunch” Counterfeit Reporting Trends 2022

Richard Smith [ERAI, Inc.]

Tuesday, June 27th - 9:15 am

Abstract:

The presentation will analyze historical reporting trends using data collected by ERAI over the last decade with a comparative emphasis over the last two years. Along with annual report totals, the data will review the recurrence and classification of the reported parts as well as a change in the types of components that are being counterfeited. We will additionally explore how supply chain fluctuations and product availabilities affect counterfeiting trends and discuss the factors affecting counterfeit part reporting.

Faced with component shortages and extended lead times, sourcing professionals, under pressure from their customers, are looking for parts through alternate sources online and are putting themselves at risk for not just counterfeit parts but also wire fraud and identity theft. Digital channel purchases made through Internet search platforms (e.g., Google) can put an organization at risk for identity theft and loss of funds through payment in advance schemes that may be funding criminal activities, counterfeiters, organized crime syndicates, and even state-sponsored terrorism.

To date, ERAI has tracked more than $700,000 in wire fraud losses from just one group of malicious individuals alone. Fraudsters have long understood that it is easy to anonymously set up a website and take wire transfers in advance for parts they don’t intend to ship with practically no repercussions, leaving the buyer with no recourse. This presentation will provide specific examples of fraudulent websites, how pay-per-click advertising enables them to appear at the top of search results for commonly sought-after parts, and the difficulties that victims face when seeking assistance from law enforcement agencies. We will discuss how organizations can prevent losses through supplier selection best practices and how data-sharing benefits all organizations in the electronics supply chain.

Biography:

Richard Smith [ERAI, Inc.]

For 35 years, Richard Smith has served as an electronic component Sales Representative, Sales Manager, and International Vice President for manufacturers’ reps, franchised, and independent distributors. As International VP, he opened sales offices and stocking facilities in China, Mexico, Malaysia, and India. He has had the opportunity to visit customers in 26 countries and 360 cities. In 2013 Richard shifted gears and joined ERAI to provide manufacturers and distributors with tools and services to mitigate the risk posed by counterfeit parts.

Dr. Diganta Das

For more information or questions regarding the technical program (including Professional Development Courses), contact the Conference Chair, Dr. Diganta Das.

Karlie Severinson

For more information or questions regarding event logistics, exhibitions, and sponsorship, contact Karlie Severinson.