How a quality management system identifies suspect counterfeits

Having a robust quality management system is only a part of the puzzle. While systems are vital in managing and properly documenting suspect counterfeits, sophisticated fakes can fool experts with visual checks alone.  

In the past, counterfeits were far easier to identify due to the methods used to create them. Typically, counterfeiters would blacktop different parts and pass them off as others. Old parts have been misrepresented as standard commercial parts for decades.  

Now, the difference between authentic and inauthentic parts is almost entirely indiscernible. Worse, the number of counterfeits within the electronic component supply chain is rising. The most advanced parts today are smaller than a strand of human DNA, making it much more difficult to identify suspect counterfeits with the human eye alone. Additionally, periods of heightened demand and supply shortages often create more opportunities for counterfeiters to slip into the supply chain.  

As AI-driven demand and geopolitical uncertainty continue to reshape the semiconductor market, counterfeit and nonconforming electronic components remain a persistent and growing risk.

The counterfeit risk is rising during the memory shortage

In 2024, the ERAI reported a total of 1,055 suspect counterfeits and nonconforming parts. Within this report, the ERAI stated that this was "a 25% increase over the previous year and the highest number of parts reported by ERAI since 2015." As usual, obsolete parts were the most counterfeited, accounting for 42%. However, 27% of those reported were readily available, active parts.  

Very importantly, the ERAI noted that "Active parts that are available through authorized distribution channels are not significantly less likely to be suspect counterfeit." This means that even through authorized channels, the risk of suspect counterfeits remains a present threat.

"Companies must be especially cautious when sourcing parts, as previously unidentified counterfeit parts are constantly entering the supply chain, and the risk of meeting one of these parts remains quite high," said Evertiq.

Industries with stringent requirements, such as defense, aerospace, security, and healthcare, continue to see counterfeits infiltrate their supply chains. In 2023, Stewart Thompson, a former Naval Criminal Investigative Service (NCIS) agent, detailed these occurrences in his article “Battling Fraudulent Product Substitution.” Within the defense industry, counterfeit or nonconforming parts can mean the difference between life and death.  

In an interview with The Aviationist, Stewart explained that in 2006, the Semiconductor Industry Association (SIA) created an Anti-Counterfeiting Task Force to collaborate with law enforcement to investigate counterfeit semiconductors. The investigations revealed that most of the time, electronic waste (e-waste) shipped from the United States to China is often returned to the U.S. as counterfeit parts.  

Stewart explained, “Circuit boards are heated over flames or with soldering irons to remove the electrical components, which are washed in rivers or left out in the rain and humidity. The ICs are then sanded and remarked, often with military-grade markings, to make them appear new and sell at a premium. The electrical components are then exported from China to waiting distributors in the U.S., which sell them to other distributors or DOD prime contractors.”

Stewart continued, “In another instance, a contractor ground down markings of genuine lower-speed computer processors and remarked the components to make them appear as though they operated at a higher speed to conform with contract specifications.”

After the findings of the Senate Armed Services Committee (SASC) in 2012, which found 1,800 instances of suspected counterfeits in the military between 2009 and 2011, Congress passed the National Defense Authorization Act (NDAA)and amendments to address weaknesses in the DOD supply chain, i.e., requiring contractors to purchase semiconductors from OCMs or their licensed distributors “whenever possible” and to implement a counterfeit avoidance testing and reporting programs.

The 2022 America COMPETES Act includes language to stop the flow of e-waste to China and other countries known for electronics counterfeiting; however, the House and the Senate have yet to agree on common language in the conference committee. In addition, NASA and the DOD have adopted the Society of Automotive Engineers (SAE) AS5553(A) and other aerospace standards, standardizing practices for detecting, mitigating, avoiding, procuring, and reporting counterfeit electronic components.

These measures have worked to deter counterfeiters from engaging in criminal activity. However, the global semiconductor shortage gave them ample time to make up for lost ground. It should be noted, however, that counterfeit incidents have dropped sharply since 2019, from 963 cases to 504 in 2021. ERAI president Mark Snider believes that the sharp drop could be due to the pandemic-related shutdowns in China, which made it more difficult for counterfeiters to operate.

These problems will likely continue over the coming years, but continued efforts will help stifle the growth of avenues for dangerous suspect counterfeit components. Ars Technica notes, “Counterfeiters are well aware of the time pressure and chip shortages that companies face, and appeal to their victims’ ultimate need to get products out the door despite shortages.”

Common detection methods for counterfeit component identification

There are numerous ways to test components to determine authenticity. Each test examines a different feature or utilizes a specific process to unveil the hidden counterfeit.  

While advanced testing remains an essential tool, the most effective counterfeit prevention programs begin long before a component reaches the inspection bench. Modern quality management systems reduce risk through rigorous supplier qualification and traceability, enabling advanced testing where it delivers the greatest value.  

According to the NTS, a global leader in electronics testing, many tests help prove component legitimacy, including:  

External visual inspection, marking permanency, + blacktop examination

A visual examination is one of the quickest ways to determine component authenticity. A trained technician uses an optical microscope and approved solvents to examine a component. Under the microscope, an inspector can check the permanence of part markings using approved solvent testing to determine whether a part has been remarked with different information.  

The examination includes checking for sand marks, evidence of blacktopping or rework, bent leads, replated leads, the definition and quality of markings, appropriate markings and logos, and alterations to the originally occurring features on a component. Some of this information can be observed as misspellings on the manufacturer’s labels, date codes that are impossible, mismatched, or from the future, and a lack of humidity indicator cards or dry packs.

Blacktopping, one of the most common ways counterfeit parts are produced, involves sanding a component to remove old markings, then resurfacing to fill the shallow cavities created by the sanding process. These cavities or “indents” are never produced during manufacturing, and authentic components always arrive clean and uniform from the manufacturer.  

Electrical inspection

Another common practice for quickly determining a component's authenticity is to perform an electrical inspection. Using automated equipment and special software, these tests can range from a few measurements to complex measurements at varying temperatures. Since many counterfeits are e-waste refurbished and remade to resemble authentic components, they do not meet the same standards.  

Most authentic components perform poorly during electrical inspection; if they do, it is below the standards set by their counterparts. As former agent Stewart said, in one case, a remarked component that operated at a lower efficiency has made it appear to offer higher efficiency than the authentic part. When put to the test, the counterfeit component would have been quickly exposed as fraudulent due to its inability to meet the same standard.  

X-Ray + XRF

One of the more popular methods of component testing is X-ray imaging, which allows inspectors to view internal structures. According to the NTS, X-ray inspection is even more effective when suspect components can be compared to a known authentic part.

X-ray inspection in counterfeit detection and mitigation processes has improved over the years with the introduction of X-ray fluorescence (XRF) tools, which not only inspect components but also identify their elemental constituents. That can help weed out suspect counterfeits, no matter how sophisticated they become.  

Manufacturers can take component testing a step further with a process called decapsulation. Decapsulation involves destroying a sample of parts. Decapsulation can be accomplished mechanically or chemically, removing the lid or top layers of the component body to expose the die and internal structures. While these tests are inherently destructive, as they involve deconstructing the component, they reveal further information about the counterfeit.

Thermal analysis

According to the NTS, another way to weed out suspect counterfeits is through thermal analysis techniques on a small portion of a component’s body. Thermal analysis measures some chemical or mechanical properties as a function of temperature. This can be achieved through three techniques: Differential Scanning Calorimetry (DSC), which measures chemical reactions via temperature changes; Thermogravimetric Analysis (TGA), which measures weight loss via temperature changes; and Thermomechanical Analysis (TMA), which measures dimensional changes via temperature changes.  

Further testing

As described by the NTS, there are other ways to test components on their authenticity, which include new and evolving technology that measures different materials within an electronic component, including polymers by Fourier Transform Infrared Spectroscopy (FTIR), ionic contamination with Ion Chromatography (IC), and even ultrasounds through Scanning Acoustic Microscopy (SAM).  

Each tool and process is tailored to its effectiveness and suits the specific needs and location of the inspecting body. Advanced testing represents one layer of a comprehensive Quality Management System. Combined with supplier qualification, traceability verification, risk-based inspection, and standardized documentation, these authentication methods help prevent suspect counterfeit components from reaching production environments.  

To prevent counterfeits from entering your supply chain and products, having the proper testing equipment and a quality management system to document occurrences for anti-counterfeit organizations like ERAI is essential.

Or purchase components from a supplier with a strict QMS and a range of anti-counterfeit tools to uncover even the most sophisticated fakes.  

Source components with confidence

Sourceability applies a risk-based inspection model that tailors verification based on sourcing origin and traceability. Components sourced directly from franchised distributors or original component manufacturers receive Level 1 verification, including documentation review, packaging inspection, barcode validation, date code verification, and traceability confirmation. Independently sourced components undergo Level 2 inspection, in which IDEA 1010 and AS6081 protocols guide advanced authentication testing conducted by certified inspectors.

However, a distributor like Sourceability, which puts quality first, doesn't stop there. A good independent distributor continues to invest in standardized global quality processes, advanced inspection technologies, and continuous training to strengthen counterfeit detection while helping customers confidently source authentic electronic components.

Counterfeit prevention is not achieved through a single inspection or piece of equipment. It requires an integrated quality system that's built around continuous improvement. By combining these layers into one globally standardized process, Sourceability helps customers reduce supply chain risk while maintaining confidence in every shipment.