Counterfeit products as well as warranty scams represent issues which cost quietly, tarnish brand trust, leave customers to feel frustrated, and chip away at profits across sectors. Your products are vulnerable even if you're selling household appliances, electronics, or running a direct-to-consumer business. Your products are vulnerable so you might face duplication, fake versions, or false warranty claims. That's where modern tools like Dyrect come into play. These systems aren’t just about processing returns; they’re essential for stopping counterfeit goods from slipping into your supply chain. Let's discuss how they do this and why any scaling brand should want such a warranty management system for itself to detect and deter fraud
The Growing Problem: Counterfeiting and Warranty Fraud
Today, brands are more exposed as it is now easier than ever to counterfeit and warranty fraud. Counterfeit products are sold on unknown sites, grey markets, and even via official third-party resellers.
Meanwhile, warranty fraud appears to be climbing, with dishonest claims involving stolen or reused serial numbers, or even fake product IDs. Without a centralized registration system, it's tough to tell who your real customers are or verify if a claim is legitimate. Studies suggest that warranty fraud can account for up to 10% of warranty-related costs or 2% to 4% of total revenue each year. This issue intensifies when companies replace, refund, or repair products linked to fraudulent claims.
The Solution: Product Registration and Authentication with Dyrect
The answer lies in product registration and warranty authentication tools like Dyrect. It's more than just a warranty tracker. This is a comprehensive service that allows you to register every single product with its own QR code or serial number. It validates purchases via metadata collection of IP address, date, and time of purchase. You will know when warranties expire or services/guaranteed eligibility in real time, and it automatically flags suspicious or duplicate entries. It encourages customer loyalty and engagement, giving legitimate buyers access to product how-tos, further info, videos, etc., and potential upselling.
How Dyrect Prevents Counterfeiting and Warranty Fraud
Unique Product Identity with QR Codes & Serial Numbers
All products come with a scannable QR code. The QR code links to a secure, white-label registration page that detects authenticity and fosters a one-to-one connection with your consumer.
Smart Warranty Validation System
Once registered, Dyrect knows the registration date, registration IP location, and the device. So, authenticated product registration proves the item was never registered before. Dyrect will raise a red flag when the same serial number is entered a second time or from a different location. With improper registrations filtered out, claims filed by those without legitimate registrations can be denied or escalated for manual review, which saves time and money.
Fraud Prevention with Data Analytics
Dyrect takes warranty fraud detection software a step further with data. For example, Dyrect utilizes machine learning to create associations and assess data across thousands of registrations and claims submitted. Our sophisticated machine learning algorithms is set to understand complex relationships undetectable by the average person. For example, fraud is detected via the formation of serial offenders where the same registrant uses the same fraudulent technique over various companies or exposure to counterfeit operations as they emerge from learned data trends. This allows you to recognize suspicious registrations (the same email registering a total of 10 serials), rogue resellers or infiltrating gray-market activities, and then use the registration metadata to perform geographic or time-based fraud analysis through learnings.
No-Code CRM & Claims Integration
Dyrect simply integrates with Shopify, WooCommerce, Klaviyo, HubSpot so that you can maintain claims in one location while empowering automated and manual review of claims on your own website.
Why is Dyrect the Best Warranty Claims Management Software?
Whether you're scaling D2C brands or operating with thousands of units a month, Dyrect empowers you to:
Reduce warranty fraud by eliminating false or duplicate claims through intelligent detection.
Improve customer service by ensuring only valid customers are serviced.
Reduce replacement and service expenses.
Build customer trust through transparent warranty and product experience.
Increase customer loyalty through engaging post-registration.
Bonus: Dyrect’s Warranty Solution Offers More Than Just Fraud Prevention
The platform includes:
A drag and drop form builder for custom registration opportunities.
A generated PDF certificate for proof of authenticity.
A customer portal to check warranty status, claim, and communicate for support.
A product experience hub for how-tos, videos, and manuals.
Marketing integrations for post-purchase upsells and loyalty programs.
Final Thoughts
Counterfeits aren't just a legal or an operational issue. They impact your product, your service quality, and customer relationships.Fake warranty claims can cost your business real money and valuable time.
Instead of relying on outdated support workflows or tedious manual reviews, consider switching to a system that automatically prevents fraud, authenticates products, and helps build genuine relationships with verified buyers.
Switch to the claims processing solution that does it all—prevention, authentication, and assists in creating honest relationships with real customers.
Dyrect is the only warranty claims processing software you'll need, a product authentication system that will protect and future-proof your brand against counterfeits.
Visit Dyrect.co for a demo or to see how other brands are saving thousands per month.
