Uncovering Supply Chain Fraud: Types, Causes, and Impacts
Supply chain fraud presents serious risks to businesses, impacting their finances, reputation, and sustainability. Counterfeit products, vendor fraud, inventory theft, collusion, and financial manipulation are common types of supply chain fraud. Causes include lack of transparency, weak internal controls, pressure, and limited due diligence. The impacts range from financial losses and reputational damage to legal consequences and operational disruptions. Organizations can combat supply chain fraud through robust controls, due diligence, employee education, collaboration, and transparency measures. Detecting and preventing fraud is essential for maintaining stakeholder trust and ensuring the resilience of supply chains.