Cisco loses over $10M to parts fraud
In a surprising coincidence, the FBI made two arrests this week in to two unrelated cases of fraud involving replacement parts for Cisco systems networking products. In both cases, the suspects exploited Cisco's SMARTnet warranty program to fraudulently obtain replacement parts, which they then sold to computer resellers or Cisco discount equipment dealers for a profit. While a story like this might seem a little strange, it should come as no surprise: many of the parts that Cisco manufactures are extremely expensive and are as susceptible to theft as any other valuable item.
For more on the frauds:
- see this eWeek article
Comments