Supply chain fraud encompasses a range of practices from bribery and bid rigging to fraudulent billing. A 2018 report from the Association of Certified Fraud Examiners (ACFE) suggested that more than $7 billion is lost globally due to fraud.
With their extensive supplier networks, vast numbers of transactions and global operations, today's organizations are increasingly vulnerable to supply chain fraud.
Common types of fraud include:
- corruption and bribery,
- bid rigging,
- counterfeit goods,
- fraudulent billing,
- misappropriation of assets and
- cybercrime attacks on a company's suppliers and vendors to access data or disrupt the supply chain.