The 2021 Counterfeit Device Numbers Crunch

Join the CALCE/SMTA Counterfeit Parts and Materials Symposium 2022 for this and other informative presentations

Mark Snider

ERAI, Inc.

Abstract: An analysis of 2021 reported parts and: Avoiding Fraud and Identity Theft While Sourcing Hard-to-Find Parts During a Global Chip Shortage 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 counterfeits 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 nearly $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 transfer 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.

Bio: Mark A. Snider is the founder and President of ERAI, Inc., a privately held global information services organization that monitors, investigates and reports issues that are affecting the global supply chain of electronics. Since 1995, ERAI has been the industry leader for in-depth information on counterfeit, substandard and high-risk parts. What started as a small group of companies sharing data to protect each other from losses resulting from fraudulent activities has since grown into the industry's most complete and comprehensive resource for industry-related market intelligence. Mark has previously presented at NASA's Quality Leadership Forum (QLF), Aerospace Industry Association (AIA), the Surface Mount Technology Association (SMTA) and the Center for Advanced Life Cycle Engineering (CALCE), Department of Defense (DOD), Missile Defense Agency (MDA), Diminishing Manufacturing Sources and Material Shortages (DMSMS), the Nuclear Procurement Issues Committee (NUPIC), the National Intellectual Property Rights Coordination Center (IPRCC) and the D.C. Microelectronics Working Group (DCMWG).