"Non-Franchised distributors are supplying almost all of the counterfeit components. Most broker organizations are very small and do not have established quality control procedures in place. We have more than 10,000 brokers in our database. Of those only 200 have more than 10 employees and quality control procedures for their staff. That leaves us 9,800 to fall victim to. Many brokers are working out of their home. All someone needs is a phone, fax and e-mail address and they are in business”." (American Electronic Resource, Inc.)

It is more than a backyard industry. The following figures present the situation: