In short: Food fraud is the intentional misrepresentation of food for economic gain. Because it is designed to evade detection, regulatory alerts alone are not enough to identify it. Companies identify food fraud risks by combining incident data, scientific literature, media and regulatory reports in a food fraud vulnerability assessment, as GFSI certification programs require, and digital tools make that assessment faster and more complete.
Food fraud, or economically motivated adulteration, is defined as the intentional misrepresentation of food products for economic gain (1). As the food supply chain grows increasingly complex, the potential for fraudulent activities escalates.
Our video clip below reviews how digital tools can enhance and streamline food fraud risk assessments, featuring FoodChain ID’s Karen Everstine, PhD, MPH, Technical Services Director, Food Safety Solutions.
Want to learn more? Click here to view the full webinar.
Defining Food Fraud
Food fraud (economically motivated adulteration) can take many forms, including substitution or dilution, mislabeling, adding undeclared colors, and the use of non-food grade substances (2). Fraudulent practices not only deceive consumers but also undermine food safety and quality. Additionally, the economic impact of food fraud is substantial. The average cost of a product recall can be around $10 million, and larger recalls can cost over $100 million (3). The Food Safety Modernization Act (FSMA) Preventive Controls Rule requires the identification of “reasonably foreseeable” food safety hazards in the supply chain, including those arising from economically motivated adulteration (4). The Global Food Safety Initiative (GFSI) certification programs specifically require a food fraud vulnerability assessment to identify potential vulnerabilities, highlighting the importance of food fraud risk mitigation (5).
External Data Sources for Risk Evaluation
A holistic approach to risk assessment involves an interplay between baseline risks and vulnerabilities and current and emerging risks and vulnerabilities. Evaluating food fraud risks requires data from various external sources, including scientific literature, media reports, regulatory reports, and other relevant publications. By tapping into these external data sources, companies can gain a broader and more nuanced understanding of potential food fraud risks.
The Role of Comprehensive Data
Regulatory alerts are instrumental in identifying potential risks, but they are not sufficient on their own. This is because food fraud is intentional and designed to evade detection. Comprehensive databases, such as FoodChain ID’s Food Fraud Database, are pivotal tools to assess food fraud vulnerabilities. The Food Fraud Database tracks incidents of food fraud, market sampling, scientific literature on fraud detection methods and other risk data from the public domain. Integrating these varied sources provides food safety professionals with a single, trusted source of comprehensive data. Powerful data analytics tools within the system streamline food fraud risk assessments, and customizable alerts notify subscribers of new risks that may impact their products.
How do you identify food fraud risks?
To identify food fraud risks, start with the list of ingredients and raw materials you buy. For each one, check its history of fraud incidents and known adulterants, then consider vulnerability factors such as price, availability and the complexity of the supply chain. Add current and emerging risks from regulatory alerts and media reports, and document the results in a food fraud vulnerability assessment with a mitigation plan.
Why is food fraud so difficult to detect?
Food fraud is difficult to detect because it is intentional: fraudsters choose adulterants and methods that pass routine quality tests. In the 2008 melamine incident, for example, melamine was added to milk to raise its apparent protein content in standard tests. Long, complex supply chains make it even harder to trace where fraud happens, which is why data on past incidents and detection methods is essential.
How do food safety audits help identify food fraud risks?
GFSI-benchmarked certification schemes, such as BRCGS, SQF, FSSC 22000 and IFS, require sites to carry out a food fraud vulnerability assessment and keep a mitigation plan. During the audit, the certification body checks that this assessment exists, covers all relevant raw materials and is reviewed regularly. Audits therefore make companies look at fraud risks systematically, not only after an incident.
Benefits of the Food Fraud Database
- Ingredient Groups: Users can build and customize lists of raw materials from the list of more than 5,700 ingredients currently in the Food Fraud Database
- Custom Data Exports and Alerts: Ingredient groups can be used to search, create custom data exports, and receive weekly notifications
- Holistic Food Fraud Intelligence: The Food Fraud Database goes beyond regulatory alerts to provide insights on food fraud risks from the scientific literature, media reports, and other public sources
- Data Analytics: User-friendly tables, charts, and heat maps provide visual tools for understanding potential food fraud risks
- Supports Compliance: The Food Fraud Database provides targeted support for compliance with the economically motivated adulteration requirements of the FSMA Preventive Controls Rule and the GFSI Certification Program food fraud vulnerability assessment requirements
What systems help mitigate food fraud and product recall risks?
- Ingredient Risk Identification by HorizonScan: Daily supply chain monitoring for ingredients and supplier threats
- Food Fraud Database: Identification of food fraud risks to directly support vulnerability assessments
- Consulting: Food safety and risk assessment, Scientific and Regulatory Affairs (SARA) and Expertise as a Service (EaaS)
- Accredited Food Safety Certifications: BRCGS, SQF, FSSC 22000, IFS and GLOBALG.A.P.
Sources:
- https://www.fda.gov/food/compliance-enforcement-food/economically-motivated-adulteration-food-fraud
- https://food.ec.europa.eu/system/files/2021-04/food-fraud-reports_20210129_pres02.pdf
- https://www.insurancebusinessmag.com/au/news/breaking-news/product-recall-specialist-warns-of-hidden-costs-118509.aspx
- https://www.fda.gov/food/food-safety-modernization-act-fsma/full-text-food-safety-modernization-act-fsma#SEC103
- https://mygfsi.com/wp-content/uploads/2019/09/Food-Fraud-GFSI-Technical-Document.pdf
FAQ
It is a documented review of how vulnerable each ingredient is to fraud, based on its fraud history, supply chain and other risk factors, followed by a mitigation plan. GFSI-benchmarked schemes require it, and the Food Fraud Database supports it with incident and adulterant data.
Yes. GFSI-benchmarked certification programs require a food fraud vulnerability assessment and a mitigation plan. FoodChain ID offers accredited food safety certifications such as BRCGS, SQF, FSSC 22000, IFS and GLOBALG.A.P.
The most common types are substitution or dilution with a cheaper ingredient, mislabeling of origin, species or quality, the addition of undeclared colours, and the use of non-food-grade substances. Learn more in our webinar on protecting your brand from food safety hazards.
Companies prevent food fraud by knowing which ingredients are most at risk, qualifying and monitoring suppliers, testing high-risk materials and reviewing their vulnerability assessment regularly. Our food safety consultants can help you build or review your program.
Food fraud is the intentional misrepresentation of food products for economic gain, also called economically motivated adulteration. FoodChain ID’s Food Fraud Database tracks fraud incidents across more than 5,700 ingredients.