@Risk

In 2008, companies collectively lost more than $994 billion due to fraud and more than one- quarter of U.S. businesses experienced losses of at least $1 million each, according to a recent survey by the Association of Certified Fraud Examiners (ACFE).

What’s more, ACFE found that typical fraud incidents lasted two years, and that most often, it’s a lack of internal controls that allows the fraud to occur.

Statistics like these are staggering, and they’re the impetus behind International Fraud Awareness Week, an initiative designed to cast a spotlight on this massive –and urgent –problem. (more…)

The statistics are staggering. According to the U.S.-based Center for Medicines in the Public Interest, counterfeit drug sales will reach $75 billion globally in 2010 –that’s an increase of more than 90 percent from 2005.

As you might expect, the threat of substandard and counterfeit medicines is particularly high in developing countries, where regulation is weakest, and that’s why I was pleased to hear that earlier this week the U.S. Agency for International Development (USAID) and the U.S. Pharmacopeial (USP) Convention announced that are launching a new program that will expand their joint efforts to combat counterfeit drug sales throughout the developing world.
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Frisay’s post about fake parts in the supply chain is underscored by recent news from the European Federation of Pharmaceutical Industries and Associations (EFPIA). The EFPIA announced last week that it has launched a two-month pilot project to verify medicines and help reduce the risk of counterfeit pharmaceuticals being dispensed to patients.

The project, underway in 25 retail pharmacies in and around Stockholm, will verify more than 100,000 products. Each product will be coded with a small data matrix (similar to a barcode) that, once scanned, can alert the pharmacist as to whether or not a pack has been previously dispensed. The data matrix will contain information about product code, batch number, the expiry date and a unique, randomized serial number which identifies packs individually.

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There’s no doubt about it: counterfeiters are becoming more and more sophisticated, and as a result, their products are penetrating supply chains deeper than ever before. In fact, the U.S. Department of Commerce estimates that counterfeiting cost the U.S. economy about $10 billion in 2008 –and as remarkable as it sounds, that’s just for fake semiconductors alone.

Of course, when it comes to counterfeiting, the bottom line isn’t the only thing at risk. Fake components in the supply chain also threaten intellectual property, reputation, warranties and returns, security, and in some cases, even the end users’ health and safety, as well.

So, what can your company do to protect itself? Are there specific steps you can take to mitigate the threat of illicit parts in your supply chain? (more…)