O Chipthft

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  • File Name: Chipthft.ppt The purpose of this presentation is to explain the Gray market of computer components.
  • O Chipthft

    1. 1. Component Theft Why computers are so expensive
    2. 2. How much theft is there? $8 billion annually
    3. 3. What is taken <ul><li>Microprocessor (CPU) chips </li></ul><ul><li>Hard Drives </li></ul><ul><li>RAM </li></ul>
    4. 4. Who takes it <ul><li>Burglars </li></ul><ul><li>Disgruntled employees </li></ul><ul><li>Contract employees </li></ul><ul><li>Invasion robbers </li></ul>
    5. 5. Where does it go <ul><li>South-East Asia </li></ul><ul><ul><li>China </li></ul></ul><ul><ul><li>Vietnam </li></ul></ul><ul><ul><li>Singaphore </li></ul></ul><ul><ul><li>India </li></ul></ul><ul><li>Component Brokers </li></ul>
    6. 6. The Gray Market The thief steals the components and usually has a client arranged before the theft occurs.
    7. 7. The Gray Market The thief delivers the components to the first broker 30 minutes to 2 hours after the theft. Payment is made in cash on the trunk lid of a car. Thief get 10 cents on the dollar for the components.
    8. 8. The Gray Market Black market brokers sell the chips to gray market brokers within 2 to 4 hours of having received them. Purchase is usually paid for in cash and no receipt is given. Price mark-up is 25-50%
    9. 9. The Gray Market Gray market brokers sell the components to ligament customers. Sales conducted in store fronts. Payment may be cash or credit card. Buyer gets a receipt of the sale. Price mark-up is 10-50%
    10. 10. The gray market From theft to final sale is usually within 72 hours. After 72 hours, the components are untraceable.
    11. 11. The gray market How chips are identified <ul><li>Part number </li></ul><ul><li>Lot number </li></ul><ul><li>Date of production </li></ul><ul><li>Quantity stolen </li></ul>
    12. 12. Theft of intellectual property <ul><li>Software </li></ul><ul><li>Source code </li></ul><ul><li>Trade secrets </li></ul>top secret
    13. 13. Software piracy Cost the consumer $12.8 billion dollars in 1993

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