1 in 12 luxury watch claims are fraudulent, study finds

New research from  The Watch Register, the world’s largest international database of lost and stolen luxury watches, reports growing concerns among insurers over the scale and evolution of fraudulent claims in the luxury watch sector.

Based on responses from loss adjustors and claims handlers across the United States, Europe, Asia and the Middle East, the study reveals that respondents estimate that, on average, 14% of all insurance claims involve some form of fraud.

Focusing specifically on luxury watches, insurers estimate that fraudulent activity accounts for approximately one in 12 claims (8%).  However, only a very small proportion (6%) of these suspected fraud cases are ultimately proven, reflecting the challenges involved in investigating and evidencing fraud cases.

When asked how fraudulent luxury watch claims have changed compared to three years ago, all respondents reported seeing an increase, with three in five (61%) saying it had increased by 11% or more.  Overall, insurers report an average rise of 15% in fraudulent claims over this period.

Despite this, there is cautious optimism about the future.  Four in five (80%) respondents believe that fraud relating to luxury watch insurance claims will improve over the next three years, suggesting confidence in enhanced detection methods, greater data-sharing and more coordinated industry action.

The research also sheds some light on the operational realities of tackling fraud.  The vast majority (92%) of insurers confirm that they have processes in place to refer suspected fraud cases to law enforcement.  Amongst these, only 3% say they always refer fraud cases, with a further 49% saying they refer them most of the time.  The remainder say they sometimes (46%) or rarely (2%) refer fraud cases.

Outcomes from these referrals are mixed, with just one in eight insurers (13%) reporting consistent success in securing a conviction.  This may reflect the complexity of cross-border investigations and the burden of gathering evidence to secure a successful prosecution.

Detective Chief Inspector Simon Klust, Head of IFED: “The rise in fraudulent claims involving luxury watches is concerning, and we are working alongside our industry partners to address this trend. Insurance fraud is not a victimless crime, with fraudulent claims contributing to higher costs for honest customers. We remain committed to tackling this type of offending and bringing those responsible to justice.”

The financial exposure to the insurance sector from fraud cases remains significant.  The average value of a fraudulent luxury watch claim is estimated at approximately US$12,000, with half (49%) claims falling in the US$10,000 to US$20,000 bracket.  However some claims for brands such as Patek Philippe or Richard Mille can reach over $100,000 in value per watch.

The research also explored the types of fraud most encountered, with inflated valuations (35%) and counterfeit goods (31%) being the most cited examples.

Antonia Kimbell, Senior Manager at The Watch Register, said: “Fraud is an increasingly important issue for insurers offering policies for luxury watches.  The strength of the secondary watch market and the prevalence of counterfeit watches and papers are key drivers of fraud.

“We expect the true number of fraudulent watch claims to be far higher than the figures show.  Many frauds go undetected due to lack of serial number recording on policies and the underutilisation of tools to detect defective title, counterfeit watches and fabricated documentation.

“It is essential that insurers undertake due diligence not only on the person but also on the insured item. By systematically checking the serial numbers of all watches against The Watch Register database prior to inception of policy and payout of claim, insurers will significantly improve their chances of detecting, investigating and deterring fraud.”

The Watch Register has identified over 6,000 lost and stolen watches since the service was founded in 2014.  In 2025 alone, stolen watches identified by The Watch Register have been traced across 34 countries spanning North and South America, Europe, Asia, North Africa, Australia and the Middle East, underlining both the global scale of the problem and the reach of the platform.