Police operation disrupts luxury watch insurance fraud

High-value watches that are reported stolen or linked to insurance fraud are taken overseas via airports to be resold, according to intelligence gathered by the City of London Police’s Insurance Fraud Enforcement Department (IFED).

Acting on the intelligence, IFED coordinated a two-day operation at Heathrow Airport on 6 and 7 November 2024 to help disrupt the practice.

IFED officers provided a visible police presence at airport security and, working with colleagues from Border Force, were on the lookout for high-value watches worn by passengers or packed in their luggage. Dozens of watches were checked against The Watch Register, a global database for lost and stolen watches, to make sure that they were legitimate.

Officers also provided advice to hundreds of passengers around the checks that they should carry out to ensure that they do not unwittingly buy a watch that has been stolen or previously used in a bogus insurance claim.

According to The Watch Register, one in ten matches on its database show evidence of insurance fraud.

Detective Chief Inspector Tom Hill, from the City of London Police’s Insurance Fraud Enforcement Department (IFED), said:

“Luxury watch insurance fraud contributes to increased premiums and has alarming and inconvenient consequences for buyers who unknowingly purchase a watch that has been used in a bogus claim.

“Common examples include people making claims for the same watch with multiple insurers, taking out insurance policies using counterfeit watches and fake documents, or pretending that they lost their watch and then going on to sell it.

“We have worked with colleagues at Heathrow Airport to make them aware of this growing issue and have facilitated access to The Watch Register for Border Force operatives to help them screen for lost and stolen watches. The message of this operation is clear: time is running out for people who deal in fraudulent luxury watches.”

The operation was also supported by representatives from the City of London Police’s Dog Section, Metropolitan Police Service, The Watch Register and His Majesty’s Revenues and Customs (HMRC).

Fraudsters who make a fake claim for a watch and sell it once the claim has been settled, leave innocent buyers caught up in the wake of their scams.

When an insurance company detects a fraudulent claim, the buyer may have to liaise with its investigators. They may find it difficult to sell the watch on while the issue is being resolved and, in some cases, the watch may be held securely by a third party while its sales history is being established.

IFED advises buyers to carry out the following checks when purchasing a luxury watch to ensure that they are paying for a legitimate item:

• check the watch against The Watch Register;
• ensure that the watch comes with a presentation box, guarantee card and paperwork specific to the manufacturer;
• research the seller to ensure that they have a solid sales history and that their reviews seem genuine; and
• use a credit card, as it will offer a greater degree of protection against fraud than a direct cash transfer or an online banking payment.

Buyers who suspect that a watch has previously been used in a fraudulent insurance claim should report it to the Insurance Fraud Bureau’s confidential CheatLine on 0800 422 0421 or via insurancefraudbureau.org/cheatline.