Cut warranty costs by reducing fraud with transparent processes and balanced control Warranty Fraud Management provides a clear, practical framework for reducing fraudulent warranty claims and other excess costs in warranty and service operations. Packed with actionable guidelines and detailed information, this book lays out a system of efficient warranty management that can reduce costs without upsetting the customer relationship. You'll dig into the whole spectrum of warranty fraud, from simple sloppy procedures to systematic organized crime, and get to know the fraudulent parties, the victims, as well as the objectives and methods of the fraudulent activities in different scenarios. You'll learn how to implement controls to detect and reduce fraudulent claims and decrease the overall warranty costs. The impact of fraudulent claims is plainly spelled out alongside detailed descriptions of typical symptoms and process gaps present in diverse companies. A comprehensive, multi-modal framework for robust warranty management is presented as a template for revamping your own company's strategy. Fraudulent warranty claims occupy an estimated 3-15 percent of the average company's warranty costs, which generally average between 1-4 percent of sales. Many companies are unaware of the issue or struggle to take action against the claims for fear of upsetting business partners, or because they lack tangible evidence. This book details a robust warranty control framework that institutes transparency and control over the whole warranty chain supporting the process far beyond just fraud reduction. Understand the different actors (customers, sales channels, service agents, warranty providers, etc.) and different forms of warranty fraud Uncover issues in your company's warranty processes Learn methods to detect and prevent fraudulent activities Implement a robust system of warranty cost control Warranty fraud is a major cost-control issue for most companies, but the sensitive nature of the topic leaves most reluctant to share their experiences and divulge their strategies. Warranty Fraud Management brings warranty fraud out into the open, and provides a clear, actionable framework for cost-savings through fraud reduction.

Cut warranty costs by reducing fraud with transparent processes and balanced controlWarranty Fraud Management provides a clear, practical framework for reducing fraudulent warranty claims and other excess costs in warranty and service operations. Packed with actionable guidelines and detailed information, this book lays out a system of efficient warranty management that can reduce costs without upsetting the customer relationship. You'll dig into the whole spectrum of warranty fraud, from simple sloppy procedures to systematic organized crime, and get to know the fraudulent parties, the victims, as well as the objectives and methods of the fraudulent activities in different scenarios. You'll learn how to implement controls to detect and reduce fraudulent claims and decrease the overall warranty costs. The impact of fraudulent claims is plainly spelled out alongside detailed descriptions of typical symptoms and process gaps present in diverse companies. A comprehensive, multi-modal framework for robust warranty management is presented as a template for revamping your own company's strategy.Fraudulent warranty claims occupy an estimated 3-15 percent of the average company's warranty costs, which generally average between 1-4 percent of sales. Many companies are unaware of the issue or struggle to take action against the claims for fear of upsetting business partners, or because they lack tangible evidence. This book details a robust warranty control framework that institutes transparency and control over the whole warranty chain--supporting the process far beyond just fraud reduction.* Understand the different actors (customers, sales channels, service agents, warranty providers, etc.) and different forms of warranty fraud* Uncover issues in your company's warranty processes* Learn methods to detect and prevent fraudulent activities* Implement a robust system of warranty cost controlWarranty fraud is a major cost-control issue for most companies, but the sensitive nature of the topic leaves most reluctant to share their experiences and divulge their strategies. Warranty Fraud Management brings warranty fraud out into the open, and provides a clear, actionable framework for cost-savings through fraud reduction.

Foreword xiiiPreface xviiAcknowledgments xxiiiAbout the Authors xxvChapter 1 Overview 1Warranties 3Warranty Servicing 4Warranty Costs 5Warranty Fraud 6Impact of Warranty Fraud 9Warranty Fraud Management 10Study of Warranty 10Goals of the Book 12Structure of the Book 12Note 14Chapter 2 Products and Product Warranty 15Products 16Product Performance, Failure, and Reliability 19Product Maintenance 24Product Warranty 26Maintenance Service Contracts 36Insurances 37Notes 38Chapter 3 Warranty Servicing 39Parties in the Warranty Service Network 40Warranty Service Process 46Outsourcing of Warranty Service 54Contracts 56Notes 62Chapter 4 Warranty Costs 63Different Perspectives 65Factors Underlying Warranty Costs 68Warranty Cost Metrics 72Warranty Reserves and Accruals 77Warranty Cost Control 78Notes 79Chapter 5 Warranty Management 81Evolution of Warranty Management 82Service Life-Cycle Perspective 84Product Life-Cycle Perspective 95Organizational Structure 100Warranty Management Systems 105Warranty Management Maturity Models 122Notes 124Chapter 6 Warranty Fraud 125Fraud in General 126Actors and Victims of Warranty Fraud 128Classification of Warranty Fraud 129Fraud Patterns 130Consequences and Impacts of Warranty Fraud 135Customer Fraud 139Service Agent Fraud 147Sales Channel Fraud 162Warranty Administrator Fraud 166Warranty Provider Fraud 169Notes 175Chapter 7 Warranty Control Framework 177Contracts 180Transaction Controls 181Analytics 183Service Network Management 187Chapter 8 Customer Fraud Management 189Customer Contract 190Customer Entitlement 200Material Returns Control 207Analytics 208Notes 213Chapter 9 Service Agent Fraud Management 215Service Agent Contract 216Entitlement and Repair Authorization Processes 237Claim Validation Process 239Analytics 248Material Returns Control 278Service Network Management 280Notes 291Chapter 10 Fraud Management with Other Parties 293Sales Channel Fraud Management 294Warranty Administrator Fraud Management 299Warranty Provider Fraud Management 305Chapter 11 Structures Influencing Warranty Fraud 307Effective Service Process 308Service Organization 315Notes 318Chapter 12 Implementing a Warranty Control Framework 319Assessing the Current Situation 320Crafting an Improvement Plan 322Defining Policies and Rules 322Building the Capabilities 323Deploying the Change 325Business Case Considerations 327Implementation Challenges 328Achieving the Transformation 329Chapter 13 Epilogue 331Opportunities to Improve Warranty Control 333New Research into Warranty Fraud 335Appendix A Detailed Claim Data 337Appendix B Agency Theory 343Appendix C Game Theory 347Glossary 351Acronyms 355References 357Index 363