A fifth of people believe it is legal to claim for pre-existing phone damage on new insurance policies

• 15% of UK people also admit to having falsely claimed for accidental damage 

• Consequences for perpetrators include difficulties when accessing insurance services and potential criminal charges 

• ‘It’s not worth the risk’, warns Insurance Fraud Bureau 

New research from Cifas, the UK’s leading fraud prevention service, has revealed a concerning misconception about mobile phone insurance. Shockingly, 1 in 5 people (19%) believed it was legal to claim for accidental damage to their phone even if the damage occurred before they took out insurance. This is, in fact, fraud.  

Cifas’ Fraud Behaviours Survey presents 2,000 UK adults with 10 different scenarios of individuals committing first party fraud – when someone knowingly misrepresents their identity or provides false information for financial or material gain. 

In one of the scenarios, an individual had upgraded their mobile phone but did not take out insurance. They then cracked their screen and only afterwards took out an insurance contract – claiming for accidental damage and falsely stating it had occurred after the policy was in place. 

Over a tenth (11%) of respondents felt it was ‘reasonable’ to make such a claim and 1 in 7 (15%) admitted that they, or someone they knew, had done so in the last 12 months. 

With thousands of telecoms and mobile industry professionals heading to the Mobile World Congress next month (3-6 March) to discuss the key issues impacting the industry, fraud is set to be high on their agenda. 

Cifas is urging consumers to recognise that dishonest actions – regardless of their perceived justification – have real-world consequences. 

Mike Haley, CEO of Cifas, said: ‘When individuals commit insurance fraud like this, telecoms operators are left to carry the costs – diverting valuable resources away from improving services and addressing genuine customer needs. 

‘Fraudulent claims only increase premiums for honest customers. They also put real financial pressures on service providers, contributing to wider economic losses, and higher prices for consumers.’ 

John Davies, Intelligence and Investigations Manager at the Insurance Fraud Bureau, said: ‘Making a bogus claim for a mobile phone has serious consequences, as the perpetrator can be added to the Insurance Fraud Register (IFR) which may prevent them from accessing insurance services in the future, and they can face criminal charges. 

‘As part of our ongoing prevention work, we’re calling for more people to be aware of the devastating consequences of opportunistic fraud, before trying their luck by attempting to make a false claim. Our message is simple: it’s not worth the risk.’ 

Overall, 48% of all respondents felt it was ‘reasonable’ to commit first party fraud, according to the latest Cifas Fraud Behaviours Survey. 

Telco and mobile operators can identify potential fraud in their existing customer base by implementing Cifas’ innovative solution, Vision. Providing real-time alerts, Vision helps prevent fraud losses and ensures organisations are aware of any changes in a customer’s behaviour so they can investigate and act at the earliest opportunity. Learn more about Vision. 

ENDS 

Notes to Editors 

For more information, please contact Hayley Paterson, Cifas Press and PR Manager, on 020 4551 7072 or press@cifas.org.uk. 

Survey methodology 

The survey was carried out by Opinion Matters on behalf of Cifas with a nationally representative sample of 2,000 UK people between 22-28 May 2024. 

About Cifas 

Cifas is the UK’s leading not-for-profit fraud prevention service with over 775 members from across key economic sectors including banking, retail, insurance, and telecoms. Cifas protects businesses and individuals from fraud through the sharing of data and intelligence sharing between the private, public and third sectors. In addition to providing products and services which help businesses prevent more than £1.8bn in fraud losses each year, Cifas delivers specialist training through its Cifas Fraud and Cyber Academy and Digital Learning programme. 

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About Opinion Matters 

Opinion Matters is an independent market research agency that create bespoke market research solutions for businesses, organisations, and agencies worldwide.  Opinion Matters abides by and employs members of the Market Research Society which is based on the ESOMAR principles. 

About IFB 

The Insurance Fraud Bureau (IFB) is a not-for-profit organisation at the heart of the UK’s fight against insurance fraud. It acts as a central intelligence hub for industry members to share intelligence to help detect and disrupt fraud networks. IFB Investigators work alongside police forces, regulators and industry watchdogs to build evidence and support enforcement. Since its inception in 2006, IFB’s investigations have helped to secure over 1,300 arrests and over 670 convictions (totaling more than 600 custodial years in prison). IFB regularly runs awareness campaigns to help the public spot signs of insurance scams and encourages the public to report evidence of insurance fraud to its Cheatline. IFB is on X (Twitter), LinkedIn, Facebook and Instagram. Learn the latest convictions on IFB’s media centre. 

CheatLine 

Insurance fraud can be reported to IFB’s confidential CheatLine online at www.insurancefraudbureau.org/cheatline or via its phoneline 0800 422 0421 (powered by CrimeStoppers). 

Contact us at press@cifas.org.uk