ABSTRACT
Methods of tackling new product frauds have been proposed in recent literature. However, no significant publications exist to investigate issues connected to fraud detection and prevention in the remanufacturing sector. The issue of warranty fraud from a warranty service agent has been recently addressed; however, those that result from the customer has yet to be explored. This study aims to examine problems in the electronics remanufacturing sector and look into strategies available to the warranty provider when it comes to fraud by the customer. Discrete event simulation is employed to contrast how well a sensor-embedded product may improve the existing system by comparing relevant fraud statistics. The sensor-embedded scenario was able to preemptively stop more frauds, but further research into sensor cost would be required to truly ascertain the value of sensor implementation.
