Warranty Fraud

Have you ever answered the phone where the caller told you that your vehicle’s warranty is about to expire or received a postcard urging you to act fast to avoid expiration? Hang up or throw it away. It’s a scam! 

Warranty fraud refers to deceptive practices or misrepresentations made by individuals or businesses to exploit or manipulate warranty programs offered by manufacturers or retailers. Warranty fraud can occur in various industries, including electronics, automotive, appliances, and other consumer goods.

Examples of Warranty Fraud:

False warranty claims: Individuals may submit fraudulent warranty claims for products that were not genuinely defective. They may intentionally impair merchandise or misrepresent the circumstances of the damage to receive repairs, replacements, or refunds covered by the warranty.

Counterfeit products: Fraudsters may sell fake or imitation products and falsely claim they have a legitimate manufacturer’s warranty. This tactic deceives customers into thinking they are purchasing genuine items with warranty coverage.

Unauthorized repairs or modifications: Modifying or repairing a product by unauthorized personnel can void the warranty. Some individuals may conceal unauthorized changes or repairs and attempt to claim warranty benefits for subsequent issues.

Warranty transfer fraud: Some warranties are transferable from the original purchaser to subsequent owners. Fraudulent sellers may misrepresent a product’s warranty eligibility during resale to increase its value or sell products “as new” when the warranty has already expired.

Misuse of warranty terms: Individuals may intentionally misuse or operate products outside the recommended guidelines, causing damage or malfunction. They may then try to claim warranty coverage for the resulting issues.

Warranty fraud is illegal and can have consequences for individuals and businesses. Manufacturers and retailers employ various strategies to detect and prevent warranty fraud, such as thorough verification processes, monitoring product returns and repairs, and conducting investigations when suspicious claims arise.

Consumers can help combat warranty fraud by familiarizing themselves with warranty terms and conditions, keeping receipts and documentation, purchasing products from authorized dealers, and reporting any suspected fraudulent activity to the manufacturer or retailer.

If you have been a victim of warranty fraud, you should make a statement to the authorities. Federally, you can report it here to the FTC. For reporting to the Investigative and Forensic Services of Florida, click here.