🇦🇺Australia

Core Charge Refund Fraud

1 verified sources

Definition

Fraudulent refunds where cores are not returned but credits issued, common in high-value parts like batteries and transmissions.

Key Findings

  • Financial Impact: 1-3% inventory shrinkage; AUD 1,000-5,000 per fraud incident
  • Frequency: Per high-value return
  • Root Cause: Lack of digital matching between physical returns and billing credits

Why This Matters

The Pitch: Australian auto parts wholesalers bleed AUD 15,000+ per year from core refund scams. Automated tracking prevents unauthorized credits.

Affected Stakeholders

Accounts Payable Clerk, Returns Processor, Internal Auditor

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Core Charge Return Warranty Disputes

AUD 5,000-20,000 per major dispute; 2-5% of parts revenue in refunds/rework

Manual Core Charge Inventory Write-offs

AUD 200-500 per lost core (e.g., battery); 20-40 hours/month manual reconciliation

Delayed Accounts Receivable Payments

AUD 3,000 per average invoice tied up (30+ days); collections agency fees post-7 business days overdue; storage fees for delayed delivery (e.g., 7+ days at reasonable rate)

AR Collections Agency Costs

Collections agency fees (typically 10-20% of debt value) after 7 business days overdue; e.g., AUD 300-600 on AUD 3,000 invoice

Storage Fees from AR Delivery Delays

Reasonable storage fees per vehicle (7+ days, e.g., AUD 50-200/day based on industry norms)

Verzögerte Zahlungsflüsse durch manuelle Bonitätsprüfung

Logic-based estimate: ~AUD 30,000–70,000 per year in avoidable interest/financing cost for a mid-size wholesaler due to 3–5 extra days in average time-to-cash, plus tied-up working capital of ~AUD 410,000–685,000.

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