Criminal networks account for one in ten luxury watch insurance claims

Luxury watch claims increasingly infiltrated by organised fraud

Organised criminal networks are now responsible for roughly 10% of all luxury watch insurance claims, according to new data from The Watch Register, a global database of lost and stolen timepieces. The figures expose a sharp shift away from opportunistic fraud towards coordinated, cross-border schemes that exploit the high liquidity and mobility of premium watches.

Analysis of fraudulent claims found that inflated valuations were the most common technique, appearing in 35% of cases. Counterfeit watches accounted for 31%, while false ownership claims made up another 27%. More elaborate tactics – multiple claims on the same item (4%) and entirely fictitious losses (3%) – were less frequent but underscore the growing sophistication of the fraudsters.

The threat is increasingly physical, too. A survey cited by The Watch Register found that 70% of industry respondents reported a rise in the use or threat of violence during watch thefts over the past three years, with a further 5% describing the increase as ‘dramatic’. The database, which has identified over 5,000 lost and stolen watches since 2014, warns that the problem is both global and accelerating.

How insurers are being targeted by evolving watch crime

What The Watch Register’s numbers reveal

The concentration of inflated valuations at the top of the fraud list highlights a fundamental challenge for loss adjusters: proving the true worth of a watch after a claim. Unlike standard jewellery, luxury watches can appreciate in value, making it difficult to distinguish between legitimate market movements and deliberate overstatement. The fact that counterfeit pieces account for almost a third of fraudulent claims also shows that many insurers are failing to authenticate items at the point of policy inception or when a claim is submitted.

A mounting threat from organised crime

The revelation that one in ten claims involves an organised network moves the fraud risk from an individual moral hazard to a systemic, industrialised problem. These groups see watches as near-cash assets that can be moved across borders and resold in opaque pre-owned markets with minimal traceability. The rise in violent thefts, reported by 70% of survey respondents, suggests the physical supply chain is being targeted as aggressively as the claims process. For insurers, this means underwriting and claims handling can no longer rely on simple document checks; it demands real-time access to registries and cross-referencing with police and international watch databases.

What insurers and policyholders must do next

The findings point to several concrete steps for the insurance industry and for high-value watch owners.

For insurers and claims teams:

• Verify every watch claim against The Watch Register and Interpol’s stolen-property databases before settlement.
• Mandate recording of serial numbers, case numbers and movement details at policy inception, and use watch-specific authentication tools to spot counterfeits early.
• Build a valuation-check process that flags any appraisal exceeding standard secondary-market price guides by more than 10%.
• Share anonymised fraud intelligence through industry bodies to identify repeat tactics and cross-border networks.

For policyholders:

• Register your watch on a recognised database immediately after purchase, and keep dated photographs, the original warranty card and proof of purchase.
• When insuring, use an agreed-value policy based on a recent, independent valuation to reduce friction during a claim.
• Be aware that an increase in fraudulent claims industry-wide may lead to tighter underwriting or higher premiums, so maintaining clear documentation has become even more important.