Device Insurance Fraud

Our comprehensive guide gives insurers the power to identify device insurance scams with greater confidence.

What is Device Insurance Fraud?

Device insurance fraud refers to the act of submitting a fraudulent claim to an insurer in order to obtain financial compensation for losses that are not genuine.

Providing false or misleading information during the insurance application or when filing a claim could lead to criminal charges. In addition, participating in a scheme to commit phone insurance fraud could result in being charged with any related criminal offenses.

A Problem on the rise

Up to 40% of claims on mobile phone insurance policies are fraudulent. This is significantly higher than other types of consumer insurance, such as car insurance fraud, which is estimated to be only one out of every 10 claims.

With the increasing cost of mobile phones and tablets, many users opt to buy insurance policies to safeguard against potential financial losses in case of theft, water damage, or other similar events that can render their phone inoperable. The growing use of device insurance, combined with the increase in cost of living, has led to an uptick in fraudulent claims.

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Common examples of Device Fraud

> Lying about the cause of damage

> Lying about when damage occurred

> Pretending intentional damage was accidental

> Pretending a phone has been stolen

> Pretending a phone is lost when it is sold, kept or given to a friend.

Why Should We Care?

The mobile insurance market is a huge part of our global economy and is predicted to grow from $25bn to £50bn by 2028.
In addition to financial losses, fraudulent device insurance can also have broader implications, such as increasing insurance premiums for all customers by as much as 50%, or reducing the availability of insurance coverage for certain types of devices.
Furthermore, in some instances, device insurance fraud may be linked to other criminal activities, like identity theft or the sale of stolen devices.
Insurance fraud isn’t going away and it effects us all.

So... How Can We Stop Fraud And Save Money?

Catching Phone Insurance Scams

Catching fake phone insurance claims doesn’t have to be as tricky as you might think. 

Mobile network data gives you integral insights into the device in question, allowing you to spot fake claims.

Insights like whether the device is live, whether the device has been reported lost or stolen, whether the SIM has been swapped, or if the device ID has changed all are critical to catching fraudulent claims before you pay out.

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Enhance Your Fraud Strategy

1 Book a free no-obligations call or demo

2 Work with our team to empower your insurance fraud strategy

3 Identify fraudulent device claims with ease

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