ABSTRACT

This chapter considers the basics of fraud and ways to mitigate it to reach the goal of responsible manufacturing. It describes some of the literature surrounding the issues of fraud and warranties. The two prevalent classical fraud theories are the fraud triangle theory and the fraud diamond theory. This comparison is important to assist anti-graft bodies and organizations in formulating a practical strategy to prevent and investigate organizational frauds. Fraud can potentially exist in any sectors where a monetary transaction occurs. Fraud impacts all parties involved in the supply chain: the warranty provider (WP), the ­customers, and other parties in the service network. Warranty fraud can also affect the WP’s reputation and damage its brand. Fraud is a sometimes overlooked issue in both manufacturing and ­remanufacturing environments. Remanufacturing is in essence a process of disassembly and recovery. The environmental advantages are clear, there are other benefits from remanufacturing.