Supply-chain fraud rising; pharmaceuticals at risk.

A report by the New York risk consulting firm Kroll says supply-chain fraud risks are on the rise because of global growth and increased outsourcing. Kroll said the pharmaceutical industry is one sector that has encountered significant problems because of its "increasingly complex patterns of production, distribution and sales."

Kroll's Global Fraud Report says vulnerabilities for companies increase as they expand and globalize, and add new IT systems, as their supply chains become more extended and complex.

The result makes them targets for "an array of frauds ranging from simple theft, to the misrepresentation of inventory to fool investors, to …