📊Executive Summary

The ongoing global chip shortage has significantly impacted various industries, particularly the automotive sector, which is projected to lose an estimated $110 billion this year. This shortage has led to a rise in electronic parts counterfeiting, as criminals exploit the desperate need for components. Reports indicate that fraudsters have already defrauded OEMs and EMS companies of over $110,000. The shortage, exacerbated by COVID-19-related disruptions, has created a supply-demand imbalance, prompting manufacturers to lower their guard on vendor verification, increasing the risk of counterfeit parts entering the supply chain. Analysts expect reports of counterfeit components to rise as the shortage continues into 2022....