Warranty Fraud

What Is Warranty Fraud?

Warranty Fraud refers to any attempt to falsely claim warranty benefits for products that are counterfeit, stolen, expired, tampered, reused, or previously claimed, or for units that were never eligible for warranty coverage in the first place.
Fraud occurs at both consumer and dealer levels and directly impacts brand finances, service networks, and customer satisfaction.

Without digital verification, warranty fraud is one of the easiest ways counterfeiters exploit brands.

Common Types of Warranty Fraud

1. Counterfeit Product Claims

Fake products presented for service under the brand’s warranty.

2. Duplicate Warranty Claims

Multiple claims made on the same product ID.

3. Stolen or Diverted Product Claims

Products not sold through official channels claiming eligibility.

4. Tampering and Serial Replacement

Original serial numbers removed, altered, or swapped.

5. Fake Invoice or Manipulated Purchase Dates

Invoices forged to extend warranty periods.

6. Unregistered Product Claims

Attempts to claim service without completing warranty registration.

7. Dealer/Service Center Collusion

Fraudulent claims created from service networks themselves.

Warranty fraud affects both brand integrity and financial performance.

Why Warranty Fraud Happens

Counterfeiters want legitimacy by accessing service centers
Dealers attempt to claim reimbursements using old or non-genuine stock
Consumers are unaware of counterfeit purchases and attempt genuine claims
Service centers may process claims without authentication
Brands rely on paper warranty cards or serial numbers, which are easy to fake

Digital-first authentication is the only scalable solution.

Impact of Warranty Fraud on Brands

Financial losses from servicing fake or ineligible units
Damage to brand reputation due to negative customer experience
Increased workload on customer service and service centers
Inaccurate product failure data
Loss of trust among distributors
Compromised consumer confidence

Warranty fraud is not just an operational issue — it is a brand protection concern.

How Warranty Fraud Is Detected

Detection is strongest when brands use:

1. Secure Product Identifiers

Non-cloneable codes or secure QR codes prevent identity manipulation.

2. Authentication Before Claim Approval

Products are verified instantly when presented for service.

3. Digital Warranty Registration

Ensures all claims reference a verified digital record.

4. Device/Location Fingerprinting

Flags suspicious claim behaviour.

5. Historical Claim Data Analysis

Detects repeated attempts from the same user or region.

6. Service Centre Validation Workflows

Ensures front-line staff cannot bypass verification.

How Acviss Prevents Warranty Fraud

Acviss delivers a full-stack anti-fraud framework through:

Non-cloneable codes that cannot be faked
Authentication before warranty activation
Digital warranty certificates stored in Digital Twins
Service center scanning workflows to verify product identity
AI-based anomaly detection to catch repeat offenders
API integrations with CRM, ERP, and service networks
Claim-level audit logs for forensic traceability

This ensures warranty services are reserved only for genuine customers and genuine products.