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Warranty fraud

Last response: in Business Computing
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December 3, 2010 2:30:32 AM

Hello,
The IT department that I am employed in is considering reporting ~40 hard drives to the laptop manufacturer as defective, even though they are not. The reason is, they are planning to use the warranty replacement hard drives to load a new OS onto the laptops. Since we have the special warranty service that does not require us to return the "defective" hard drives, the manufacturer is none the wiser about the scheme. I have real reservations about this plan, even though I am not the one actually doing it. I'm curious to see what the community's thoughts are, and if anyone out there has a suggestion about what I could do to stop this without affecting my employment status I'd like to hear it.

More about : warranty fraud

a c 200 D Laptop
December 3, 2010 1:42:19 PM

If your assessment of the situation is accurate, then this is theft and is wrong. Not sure what else to add.

Given that, does your compnay have an employee advocate or omsbudsman you can talk to "anonymously"? If not, surely your boss has a boss.

Your call on how to proceed. Good luck!
a b D Laptop
December 3, 2010 2:46:00 PM

This is 100% fraud, reporting hdd as failed just to keep them and get free replacements.

I would use a free email service and send them a message about this, they will probably audit your company.
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December 3, 2010 3:00:13 PM

In this job environment, I recommend that whatever you, you do it anonymously.
December 8, 2010 12:42:17 PM

I would start by asking to have this thread deleted honestly.

Understand you are putting your job in jeopardy. You may be the 'whistleblower' and also lose your job for doing so.

With that in mind, I would suggest that this is fraud and state to the highest level person who is aware of what is going on what it is. You may not have all the information and this might be a viable solution.

Seek to understand the full process before calling it out. If this it outside of your work area, you may want to sit on it and let it play out for them. I can't honestly believe a company would replace 40 HDDs without starting to ask questions, or want one of their techs on site, or someone there to figure out why there is a such a high failure rate.
December 8, 2010 4:48:53 PM

Thanks for all your thoughtful replies. I think I am just going to sit on it at this point. As Riser has pointed out, the manufacturer may not fall for the scam. Also, I have taken this to the highest person I am comfortable with without risking my job
May 17, 2011 12:52:39 AM

Look for a new job...any company desperate enough to risk enormous fines and penalties to save ~$2000 does not sound like a very secure employer.
May 17, 2011 5:29:56 PM

If you have the keep-your-hard drive service and you are with a government entity, you can report to waste fraud and abuse.

Otherwise, the manufacturer will probably ask questions if the company reports 40+ failed hard drives at the same time.
!