The most common and most likely answer to this crossword clue is the 7 letter word DEFECTS
I've seen this crossword clue in The Daily Telegraph
D
E
F
E
C
T
S
More clues leading to the result DEFECTS
Buddy explains!

The straight part
We know that "Faults/defaults" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case faults/defaults = defects.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does DEFECTS mean?
DEFECTS noun- A fault or malfunction.
- The quantity or amount by which anything falls short.
- A part by which a figure or quantity is wanting or deficient.
- To abandon or turn against; to cease or change one's loyalty, especially from a military organisation or political party.
- To desert one's army, to flee from combat.
- To join the enemy army.
- To flee one's country and seek asylum.