The Pandemic of Fraudulent Parts & Products
Occurrences of counterfeit goods is growing and spreading globally. All supply chains need an injection of better technology.
Counterfeit goods generates $1.7 - 4.5 trillion US dollars for criminals annually - exceeding the GDP of most nations.
Anti-counterfeiting is a problem solved by better track & trace. If the provenance of all goods - and the materials used to make those goods - were securely tracked from source through manufacturing, through distribution to stocking, and clear through to the sale to the end user, the opportunity for crime would be severely limited and the potential illegitimate profits to be made would all but disappear.
Anti-counterfeiting protects lives as well as profits.
Recent news illustrates how any industry that has duty of care for its customers, users, or the general public, open itself up to huge risks when counterfeits can slip into their processes and products.
Convicted Felon Arrested in the San Fernando Valley for Selling Counterfeit Rolex Watches and Carrying a Loaded Ghost Handgun [LAPD]
”The purchase of counterfeits products may be hazardous to your health. There have been instances where counterfeit watches and jewelry contain elevated levels of lead and other dangerous metals. Manufacturers of counterfeit products are not beholden to the same rigorous materials and safety testing standards.”Counterfeit GM Parts Operation In Michigan Busted By Feds [GM Authority]
”Investigators went on to purchase parts for the Chevy Impala and Chevy Cruze, noting that the items were clearly counterfeit, thanks to evidence of shoddy welding…”FDA warns consumers not to use counterfeit Ozempic (semaglutide) found in U.S. drug supply chain [FDA]
”…analysis found the needles from the samples are counterfeit. Accordingly, the sterility of the needles cannot be confirmed, which presents an increased risk of infection for patients who use the counterfeit products.”UK firm sold thousands of unverified jet engine parts, CFM says [Reuters]
”…analysts say any disruption to the tightly monitored system of controls underpinning the safety of air travel must be tackled quickly.”Ex-mechanic pleads guilty to fake airbag sales [SecuringIndustry]
”Upon deployment of an airbag in a crash, counterfeit airbag covers can shatter, sending shrapnel into a vehicle’s passenger compartment.”Fraud in a bottle: How Big Pharma takes on criminals who make millions off counterfeit drugs [CNBC]
”… counterfeiters had obtained authentic empty bottles, filled them with the wrong pills and packaged them with a counterfeit seal. In one case, she said, a patient temporarily could not walk or talk...”
Even when lives are not at direct risk by counterfeits, lives may be indirectly at-risk, as well as the livelihoods of workers worldwide.
When counterfeits are purchased, that means less legitimate revenue was made by a manufacturer - less money to pay workers, less money to re-invest into company growth or into the community, etc. Also, the crime often doesn’t stop with counterfeiting, as the money raised often funds other criminal activities.
Counterfeit products cost US businesses more than $200 billion annually and account for the loss of more than 750,000 jobs (Office of the United States Intellectual Property Enforcement Coordinator. Intellectual property spotlight. March/April 2012. www.whitehouse.gov/sites/default/files/omb/)
How knockoffs took over America [Business Insider]
“Counterfeit goods have also been linked to organized-crime rings that fund terrorism, human trafficking, and the illicit drug trade…”The Economic Impacts of Counterfeiting and Piracy [International Chamber of Commerce]
”We also estimate significant employment effects: an estimated 2 to 2.6 million jobs lost globally in 2013, and projected losses of 4.2 to 5.4 million by 2022.”
Any industry that produces and sells a physical thing is susceptible to counterfeiting. All parts of an industry’s supply chain can be upgraded with better track & trace solutions, leaving no weak links.
GlobalAutoID’s members work together to provide comprehensive track and trace solutions that combat counterfeiting and product diversion across every link of a supply chain, for multiple industries.
iTRACE Technologies specializes in Brand Protection and Product Security. Their unique patented technology enables our customers to police their brands, prevent diversion, cut-off the grey market supply, and easily identify counterfeiting.
In business for over 30 years, Barcom Inc. has developed expertise in RFID, Fixed-Mount Scanning, Factory Automation, RF Infrastructure and Application Solutions.
Read how Barcom and Zebra solutions can bring pharma companies into compliance with the US Drug Supply Chain Security Act.
Headquartered in Pittsburgh, Pennsylvania, MECCO has been leading the way in industrial product marking and identification systems since 1889. Throughout the evolution of new marking techniques, MECCO has helped customers determine the best technology for their application.
High-Mark Systems a leading provider of high-quality Industrial Marking and Identification Systems (IMIS) products for businesses of all sizes, and is proud to partner with some of the world’s leading companies.