WASHINGTON – “High risk” suppliers are increasing sales to federal agencies, including the US military, with a record number of fake tech products, according to published reports today.
Fake products in the government's supply chain rose 63% during the past decade, says IHS.
In 2011, 9,539 banned businesses had sold technology to the government, with about 10% of incidents involving counterfeit parts, say reports.
Fake tech products quadrupled from 2009 to 2011, says IHS. For example, in September 2010, the Missile Defense Agency said the memory in a high-altitude missile's mission computer was counterfeit. The cost to fix the issue was $2.7 million.
China is the largest source for counterfeit goods found in the US, at 62% of the $178 million in products that the US Customs and Border Protection agency detained in 2011.