{"id":6232,"date":"2020-07-23T11:40:39","slug":"supply-chain-fraud-in-the-middle-of-the-pandemic","title":{"rendered":"Supply Chain Fraud in the Middle of the Pandemic"},"content":{"rendered":"

\"\"The COVID-19 pandemic has created new conditions and consequences in everyone\u2019s daily lives, including businesses. The application of the Work From Home (WFH) policy has\u00a0 caused almost all business affairs to be controlled from home or online. The lack of face-to-face business processes and control has created a greater vulnerability for fraud, one of which is supply chain fraud.<\/span><\/p>\n

Supply Chain Fraud Cases<\/b><\/h3>\n

\u00a0A supply chain is a physical network between companies and third parties that are involved in the supply of raw materials, production of goods, and distribution to consumers. Naturally, supply chain activities are very vulnerable to fraud. Supply chain fraud can occur in various forms, such as the forging of supply of goods, dishonest vendors, or theft committed by company employees or other parties.<\/span><\/p>\n

An example of a supply chain fraud case that has occurred was a case of supply theft. According to <\/span>resilience360.dhl.com<\/span><\/i>, thieves took a massive supply of industrial equipment worth over \u00a3 70,000 that was loaded in a truck, by drugging the truck driver. Another case that was reported by <\/span>bigmacktrucks.com<\/span><\/i> is the Milan Supply Chain Solutions supplier case, where a vendor supplied engines with serious inferiorities without prior notice to the recipient company.<\/span><\/p>\n

Reducing Fraud in Supply Chains<\/b><\/h3>\n

Supply chains are vulnerable to fraud due to the wide distribution range, volume and scale of transactions, and the complexity of operations involving third parties, making it increasingly difficult to control the supply chain as a whole.<\/span><\/p>\n

However, many companies underestimate the fraud risks that can arise within their supply chains. According to ACFE in Report to The Nation 2020, 43% of fraud cases are detected from complaints, which means new fraud cases are reported when they are ongoing. In fact, internal control methods are more effective in preventing fraud cases and can minimize the incurred losses.<\/span><\/p>\n

Integrity Indonesia as a trusted and experienced partner provides services that support many companies\u2019 internal control regarding third-party management. Our <\/span>Know Your Vendor<\/b><\/a> helps our clients to conduct due diligence to their current or future business partners. For more information about the Vendor Screening Solution, please <\/span>contact us<\/b><\/a> today.<\/span><\/p>\n

 <\/p>\n

Written by: Aqilla<\/span>
\nBackground vector created by rawpixel.com – www.freepik.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The COVID-19 pandemic has created new conditions and consequences in everyone\u2019s daily lives, including businesses. The application of the Work From Home (WFH) policy has\u00a0 caused almost all business affairs to be controlled from home or online. The lack of face-to-face business processes and control has created a greater vulnerability for fraud, one of which […]<\/p>\n","protected":false},"acf":[],"featured_image_url":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-content\/uploads\/sites\/3\/2020\/07\/supplychain-fraud.jpg","_links":{"self":[{"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/posts\/6232","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/comments?post=6232"}],"version-history":[{"count":0,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/posts\/6232\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/media\/6234"}],"wp:attachment":[{"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/media?parent=6232"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/categories?post=6232"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/tags?post=6232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}