How to Save Your Business from Warranty Frauds?

Worldwide warranty frauds are costing brands roughly 2 - 4 % of their profit shares. In order to prevent losses in the future and protect brand IP, brands need to set up a fraudulent warranty claims detection process early on. However, the current manual warranty process that most brand relies on makes the process of fraudulent claims very easy, and identifying and stopping warranty fraud is almost impossible. 


Types of Warranty Frauds:

Warranty fraud can be difficult to detect, especially without skilled resources, processes and controls in place -- e.g. internal audit departments, anti-fraud policies, and formal fraud risk assessment. 

A manual warranty process can lead to several warranty frauds, and as these frauds are mixed with real customers who have lost their warranty cards and need assistance with their claims, it is impossible for brands to differentiate between fraudulent claims and genuine customers. 

Duplicate products:

If customers love your products, there is a high possibility that counterfeit/ look-alike products of yours are floated in the market with your brand name. Your brand name is used by the counterfeit & sell substandard products in your name. This, not only increases your warranty claims, but customers also lose trust in your brand.

Customer Frauds:

A large chunk of fraudulent claims come from fraudsters who mix up with real customers who end up losing their warranty cards and bills. Also, customers at times intentionally provide an out of the warranty product under claims.

By eliminating fraudulent claims early in the process, you not only save money but also precious time and resources. Brands that have a digital warranty solution have managed to reduce their fraudulent warranty claims to less than 0.1% and brands that continue to use a manual warranty process face a disproportionate amount of fraudulent claims. Read this blog "Here is how you can stop warranty frauds faced by your brand" to know more in detail. 

Location: India

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