Drone Company DJI Reveals An Internal Fraud Causing Over $150 Million Loss
Last updated June 20, 2021
- DJI conducted an internal probe that led to the company unearthing a large-scale fraud.
- Multiple employees were caught inflating the prices of parts that may see the drone maker lose as much as $150 million.
- DJI is currently investigating the situation and is working with law enforcement to resolve the issue.
DJI is the world’s largest drone maker, and their products are popular throughout the world with a number of high-end drones being available from the manufacturer. However, the latest report says that the company's employees inflated parts costs for personal gain which may lead to a loss of over $150 million, according to company spokeswoman Hong Yongxin. However, investigations are still ongoing, and the figure may change.
DJI found out about the fraudulent activity through an internal probe, and a number of workers were fired. The number of employees involved in inflating prices of parts has not been revealed. With over 14,000 employees across the world, DJI is responsible for catering to nearly 75% of the consumer drone market. The company is also responsible for offering software development tools that allow drone users to design custom software for personal applications.
DJI revealed in an official statement: “We are taking steps to strengthen internal controls and have established new channels for employees to submit confidential and anonymous reports relating to any violations of the company’s workplace conduct policies. We continue to investigate the situation and are cooperating fully with law enforcement’s investigation.”
DJI is not only responsible for catering to the consumer drone market but also in the enterprise sector with some of its recent products being used in agriculture and surveillance. And even though there's a number of cheap drones available on the market, DJI continues to dominate despite its high price tags thanks to reliable hardware that consumers trust. However, the inflated pricing incident may have affected a large number of existing customers and it remains to be seen how the company resolves the issue.
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