Automotive OEM Cut Warranty Fraud Losses by 41% with AI
Discover how an automotive OEM reduced warranty fraud losses by 41% using AI-powered claim intelligence and fraud detection.
A multi-region automotive OEM was hemorrhaging margin through fraudulent and inflated warranty claims, which it had no reliable way to catch. Conforge's Warranty Intelligence layer flagged anomalies in real time, surfaced dealer-level fraud patterns, and gave the claims team an auditable decision trail, recovering millions in previously invisible leakage.
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The fraud wasn't loud. That was the problem.
Across a dealer network spanning 340 service centers in three regions, warranty claims arrived at a volume no human team could meaningfully audit. Most fraud wasn't brazen, and it was incremental. Labor hours were inflated by 20 minutes per job. Parts claimed for replacements that never happened. Repeat claims filed on the same VIN within suspicious intervals. Individually, each anomaly was invisible. At scale, it was systematic margin erosion. The OEM's warranty team was processing over 12,000 claims per month with a staff of 18 analysts. Spot-checks caught obvious outliers, but patterns, such as a specific dealer consistently overbilling on a single repair code or a cluster of claims spiking after a policy update, went undetected for months. By the time a pattern surfaced, the exposure had already compounded. Internal audits estimated that 6–9% of total warranty spend was either fraudulent or materially inflated. Leadership knew it. Nobody had a systematic way to address it.
“We were approving claims faster than we could question them. Speed was the liability.”
