One of the major problems with using counterfeit components is that while they may have a higher incidence of failure, they may not fail until they have been deployed in the field. This means that testing of equipment before shipping may not expose counterfeit vulnerabilities. It is therefore in your best interest to put in place policies and processes which prevent counterfeit components from ever becomingpart of your products. Visually inspect components If components are damaged, you might be able to discern this based on the condition of leads, whether the markings have been marred, and from the general overall consistency of the components. This may also reveal if genuine components are interspersed among counterfeits, especially if components are supposed to be sold in batches. Be sure to inspect components throughout your order, not just the first 50 or 100. Carefully examine trademark and logo markings on chips. Some counterfeiters are so good that they produce superior markings compared to the original manufacturer. If you have genuine parts to compare against, you may be able to notice that the components you are being offered are marked in a subtly different way (see figure 1). In any case, you can take down batch numbers and trace the paper trail back to the manufacturer to confirm that these numbers wereactually shipped for your use. 
Work with authorized suppliers Authorized distributors work directly with the manufacturer or one of their own authorized sources. Components purchased from authorized distributors are guaranteed by both the distributor and the manufacturer. This means that if you receive genuine components that fail, replacements will be forthcoming. Additionally, in many cases these authorized sources are quite familiar with the components themselves and can offer a level of support and service that brokers or unauthorized distributors cannot. Note that each distributor will have its own policies in place for how it stands behind their services. It is also important to be aware that manufacturers will only support components purchased directly or through an authorized source; even if products purchased from another source are genuine, they do not carry the manufacturer’s warrantyor support. Be active in the procurement process Many OEMs are outsourcing as much of the manufacturing process as they can, including procurement of components. In many cases, it is an appealing option to have the factory manage the process of bringing in components for assembly, especially when the factory can promise better pricing on components than you yourself can Figure 1: Counterfeit vs. genuine OEM C&R reel. Source: Association of Franchised Distributors of Electronic Components, United Kingdom procure them for. In cases when components are critical, such as the main system processor, you may dictate that the factory acquire components from an authorized supplier. However, this does not necessarily mean that the factory will follow through. Instead, the factory may purchase counterfeit components that look real, hoping that you won’t notice and that they can pocket the difference. To avoid this problem, you must take an active role in the procurement process. This does not mean that you must chase down the source of every component. However, some footwork on your part can go a long way in providing protection. By verifying purchases with the authorized supplier yourself, coupled with spot-checking inventory to see if it matches the batch numbers the supplier says are yours, you can make it more difficult for an unscrupulous factoryto pull one past you. Distributors, both authorized and unauthorized, must also have reliable quality control mechanisms in place. They should be able to demonstrate how vigilant they are in maintaining the purity of their stock, being able to trace components back to their own sources. The further down the line you can verify, the greater the confidence you’ll have that the components you are using aregenuine. Keep up to date Not surprisingly, many silicon manufacturers are turning to anticounterfeiting technology to minimize their losses. Each of these advances, however, has limited effectiveness given the tenacity of counterfeiters to counterfeit the security technologies as well. By working with your authorized suppliers, you can keep abreast of the latest counterfeit threats and the mechanisms used to counter them. Many of these countermeasures require your active participation to be effective. While they may introduce a bit of extra paperwork and complexity to the procurement process, the added protection they provide will help to ensure the quality of your products while reducing returns, liability risk,and damage to your brand. Be vigilant To avoid the accidental or intentional introduction of counterfeit components, you must continuously perform quality inspections. This requires more than just checking the final product you receive from a contract manufacturer, as you cannot see what’s inside. You must also check the processes that are in place to make your product, including not only inspecting the raw materials used but also verifying where and how they were procured. Require disclosure of where components are coming from and, if a component varies from the sources originally agreed upon, thisshould require your approval. | 
