By Jo Best, 15 April 2004 13:15
NEWS Upgrading to the latest piece of technological kit is a big financial deal for most people - but it looks like it could be an even bigger deal for insurers: one in 20 Brits is opting to get the latest piece of kit via insurance fraud.
The temptation to upgrade equipment for free is proving too strong for the UK. On fraudulent Brits' most-wanted list are new mobile phones, cameras or personal stereos, with Pinocchio tactics favoured as the best way to get them - mysteriously lost and nicked items are the most common scams.
And who are the worst offenders? The young and the single - often the people with the most disposable income, funnily enough, according to a survey conducted by online insurer Directline.com.
The peer pressure is all too much for them, apparently. The kids are easily swayed, with more than half saying that the new trends persuaded them to put their hands in their pockets (or someone else's).
While one in 10 people said they'd been economical with the truth in order to get the latest tech must-have, the figure for 16- to 25-year-olds rose to one in seven. That said, senior citizens are also happy to fiddle their insurance when they had an upgrade craving, with one in 20 65-year-olds and above prepared to let honesty give way to the myriad pleasures of shiny, shrink-wrapped tech toys.
According to geography, the Scots and those in the North East are the most honest, with the lowest rates of fraudulent behaviour - one per cent and three per cent of people, respectively. The worst offenders were the East Anglians at 11 per cent and the Welsh at 12 per cent.
Richard Coombe, head of ecommerce at Direct Line, said that he was surprised both by the level at which people are happy to try to rip off their insurers - and by the fact that they're so ready to admit to it.
"Even allowing for the fact that many people are likely to prefer to keep this type of information to themselves when asked, this survey has revealed a huge trend towards people of all ages attempting this type of insurance fraud, particularly regarding personal technology type products... there is clearly a diminishing social stigma to using any - even illegal - means to obtain the latest piece of kit, preferably ahead of friends or colleagues," he said in a statement.
Tech upgrade-hungry folk shouldn't get too set on the fraud idea. "We are well aware of this practice and of course vigilant to ensure that it does not succeed," Coombe added.
Comments
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1. anonymous
Britain is the european leader in theft, which is why they have millions of video surveillance cameras everywhere... any surprises?
2. anonymous
Good on anyone who scams the mobile phone insurers. In my experience honesty fails miserably in getting anything out of them. There is enough small print in their contracts to ensure that no genuine theft will ever mean you getting a new phone.
3. anonymous
I genuinely lost a phone but had paid for insurance. The phone was replaced with a reconditioned item in not too good condition which died after 4 months, a month outside it's three month warranty. Even though I paid for insurance again after the first claim, neither the phone company nor the manufacturer would help. Although the rather helpful man at the phone company did say that if I'd have "lost" it they'd be able to help with a replacement.
Is it any wonder then.
(For the record I didn't make a second claim, the phone's still in my drawer I just switched providers )
4. anonymous
In response to previous "Yank"...
I would prefer "millions of surveillance cameras" to millions of guns as a means of policing my country.
5. anonymous
Nice to see a balanced and well informed view from the US contingent ;o)
I find that a good sized brolly and a well sized rim on my bowler hat ensures that the "millions" of spycams don't get to see my face while I'm mugging grannies for phones (or iPods).
As for "Good on the scammers", I assume that this means you're NOT one of those who bitches about the rise in insurance premiums caused by this misguided 'Robin Hood' mentality?
I have only ever had good experiences when being honest with insurers and as for small print...we've known about it for long enough, read it numbnuts!!!
In general these add-on policies, whether it be for your washing machine or your phone are very poor value for money, just don't buy them and stick with good ol' home contents.
6. anonymous
Tit for Tat, they screw us, we screw them, I think that's what they call a balance.
7. anonymous
I've never made a fraudulent claim in my life, in fact I've only made a couple of genuine claims and I've held insurance for 30 years. Once was when my roof leaked, for which I had to pay all the repairs but the insurance company paid a very handsome sum to a very poor decorator to make good. It was so poor I redid it myself at less cost than I paid in excess! And I once claimed on my car insurance after someone broke into it, and stole a radio that didn't work. But because I didnt claim for the radio on the grounds it didnt work anyway they got suspicious.
We live in a society that thinks lying to insurance companies is fair game, oh everyone does it. Oh no we don't. Who who believes this myth the most? The insurance companies themselves. They make it hard for honest people to claim, so no wonder people lie to get what they want. IS the UK the only European country like this?
8. Paul Roberts
The fact of course that we are all being ripped off by the insurance companies, with their million and one reasons not to pay out, has nothing to do with the general trend towards insurance fraud. If you ask people who the biggest thieves are in this country, they will tell you it is the banks and the insurance companies.
9. Mario Nicholas
The're just Crooks in suits,Paid insurance, lost phone, not covered because blah, blah. (I too changed providers ) Direct Line did a survey & all these people admitted fraud, yeh right...
10. anonymous
And when CCTV technology finally gets to grips with Wide-Screen cameras then perhaps it may be deployed with more effectiveness in the states.
11. anonymous
Gadgets are a temptation, but are merely the sympton of the real cause:
People are fed up of being scammed by insurers and are keen to even the score anyway they can, even if it's only short term, as they'll increase the premium once you've had a claim anyway.
12. Johnny Marr
I'm pretty suprised at the level of hatred for insurance companies in these comments. I though it was just me!
A certain level of fraud is factored into their business model, surely. I don't see insurance giants quitting the business, do I? They're still making money. If all fraud disappeared overnight, would they reduce our premiums? I don't think so.
I think insurance fraud stimulates innovation anyway!!!
13. Richard Marshall
So the Robber Barons of the insurance world take the good times and cream off profits yet they are not prepared to take the bad times with the good... The moment a few claims are made they raise premiums by some outrageous amount. Shame on them.
On the other hand it is you scumbags out there (you know who you are), that think it is OK to scam the latest phone out of your insurer by lying and stealing (for that is what it is), who are responsible for my phone insurance with Orange suddenly doubling. And I don't even have an up-to-date phone. Shame on you.