Dealership and service provider fraud in the U.S. is substantial. Although the true size of warranty fraud is unknown as a large number of fraud cases are never reported, warranty fraud is estimated to be as high as 10% of warranty expenses or 2% to 4% of company revenues annually. With total warranty expense by U.S.-based companies at $26.1 billion. In 2018, dealer/servicer fraud is estimated at $2.61 billion annually.

Dealer and servicer fraud including, but not limited to, over-charging for repairs, conducting repairs right before warranty period ends, replacing parts instead of repairing them, charging the manufacturer and consumer for the same repair, making false representations regarding the quality of parts, substituting lower cost parts (non OEM) in order to maximize margin, installing used parts while charging for new, charging for work that was not completed or done at all, submitting multiple invoices for parts/work, and submitting false or inflated invoices.