"iFraud" Fuels Rise in Scam Phone Claims

YORK, England, February 24, 2010 /PRNewswire/ -- Tech-savvy Brits are willing to make phoney claims on their mobiles in a bid to get their hands on the latest handset.

A new mobile phone industry report from life assistance company CPP(http://www.cpp.co.uk/), reveals the number of phones reported missing rose by 11 per cent between last May and June alone(1), coinciding with the release of the new iPhone 3G. This comes as one in twenty mobile users admits they'd be prepared to file a dishonest claim to get their hands on a new phone. And one in five Brits believes it's easier to steal a phone than buy a new one.

With the average resale value of an unlocked iPhone reaching GBP300 (2) the life assistance company warns that 'iFraudsters' could cash in with the release of the 4G handset, rumoured to hit the market in June 2010.

But while not all claims are fraudulent, phone theft remains a huge problem across the UK. Mobile users in some of the biggest UK cities should be particularly wary. Sheffield and Edinburgh came top of the phone theft hotspots in the UK with 20 per cent of people collectively having ever fallen victim. London (8 per cent of victims), Cardiff (6 per cent) and Liverpool (6 per cent) follow closely behind.

And it seems mobile users should closely guard their phones on Tuesday afternoons as that's the most likely time for handsets to be reported 'missing'.

A quarter of unfortunate victims who've had their phones stolen were pick-pocketed (24 per cent). A fifth had their phone lifted from a restaurant or pub table when their back was turned and one in twenty had their phones nicked from their office desks, showing that some work colleagues are also prepared to pinch (4 per cent).

Six in ten mobile-owners (59 per cent) acknowledge their phone is a target because it can be sold-on easily, but 24 per cent admit their own carelessness with phones.

Despite the latest mobile phone handsets costing hundreds of pounds, (63 per cent) have no mobile phone insurance and would be out of pocket should the worst happen. This is particularly worrying when the majority of victims (84 per cent) don't ever get their phone back once lost or stolen.

Danny Harrison, Head of Mobile at CPP(http://www.cpp.co.uk/), said: "The fact that we've seen a spike in claims when the iPhone 3G hit the market confirms that for some, making a fraudulent claim is an easy way to get their hands on the latest handset.

"It may be tempting to submit a false claim, especially when so many new valuable handsets are hitting the market. But people need to be aware that it is illegal to report a lost phone as stolen property and it could result in a police conviction. We urge all mobile users to be alert to the methods that desperate criminals can resort to, to keep their mobiles secure when going out to prevent theft and avoid being careless and losing them unnecessarily."

    Key statistics (all key stats in body copy also in the key release)

    - The no. of phones reported lost or stolen rose by 11 per cent
      between May and June 09
    - 20 per cent of Brits believe it's easier to steal a phone than
      buy one
    - 4 per cent of mobile users admit they'd be prepared to file a
      dishonest claim to get their hands on a new phone
    - 13 per cent of phone victims come from London and Manchester
    - 24 per cent of mobile theft victims were pick-pocketed
    - 20 per cent of mobile theft victims had their phones taken from
      pub or restaurant tables
    - 5 per cent had their phones stolen from their office desks
    - 25 per cent of Brits admit their own carelessness with phones
    - 59 per cent of Brits say it's very easy to sell-on a stolen
      mobile phone
    - 24 per cent of Brits said they were targeted through their own
      carelessness
    - 21 per cent of Brits have had their phones lost or stolen more
      than once
    - 63 per cent of Brits don't have phone insurance
    - 84 per cent of victims didn't get their phone back once lost or
      stolen

Notes to Editor

(1) Analysis from CPP(http://www.cpp.co.uk/) phone claims data during 2009 shows that claims for lost, damaged or stolen handsets rose from 1,186 in May 2009 to 1,322 in June 2009.

(2) Average figures for an unlocked iPhone 3G taken from eBay, February 2010

Research Methodology

Online research was carried out by Research Now amongst 2,007 UK adults. The survey sample was taken from a self-selecting nationally representative panel. The research was conducted 8 - 15 February 2010.

The survey was carried out amongst 47 People in Belfast, 222 people in Birmingham, 59 in Brighton, 106 in Bristol, 71 in Cardiff, 67 in Edinburgh, 73 in Glasgow, 111 in Leeds, 63 in Liverpool, 486 in London, 162 in Manchester, 96 in Newcastle, 76 in Norwich, 137 in Nottingham, 58 in Plymouth, 71 in Sheffield and 101 in Southampton.

The research referring to number of claims is taken from CPP internal data on numbers of policy holders making claims, including the places and times of the reported incident.

The CPP Group Plc

The CPP Group Plc (CPP) is an international marketing services business offering bespoke customer management solutions to multi-sector business partners designed to enhance their customer revenue, engagement and loyalty, whilst at the same time reducing cost to deliver improved profitability.

This is underpinned by the delivery of a portfolio of complementary Life Assistance products, designed to help our mutual customers cope with the anxieties associated with the challenges and opportunities of everyday life.

Whether our customers have lost their wallets, been a victim of identity fraud or looking for lifestyle perks, CPP can help remove the hassle from their lives leaving them free to enjoy life. Globally, our Life Assistance products and services are designed to simplify the complexities of everyday living whether these affect personal finances, home, travel, personal data or future plans. When it really matters, Life Assistance enables people to live life and worry less.

Established in 1980, CPP has 10 million customers and more than 200 business partners across Europe, North and South America and Asia Pacific and employs 1,900 employees who handle 16 million consumer sales and service conversations each year.

In 2008, Group revenue was GBP259.5 million, an increase of more than 15 per cent over the previous year. This is more than five times the sales level of 2000.

What We Do:

CPP provides a range of assistance products and services that allow our business partners to forge closer relationships with their customers.

    We have a solution for many eventualities, including:

    - Insuring our customers' mobile phones

    - Protecting the payment cards in our customers' wallets and purses,
      should these be lost or stolen

    - Providing assistance and protection if a customer's keys are lost or
      stolen

    - Providing advice, insurance and assistance to protect customers against
      the insidious crime of identity fraud

    - Offering advice to people considering legal action and cover for the
      costs involved in taking action on a range of legal issues

    - Assisting customers with their travel emergencies

    - Monitoring the credit status of our customers

    CPP is an award winning organisation:

    - Finalist in the National Insurance Fraud Awards, Counter Fraud
      Initiative of the Year category, 2009

    - Finalist in the European Contact Centre Awards, Large Team and Advisor
      of the Year categories, 2009

    - Named in the Sunday Times 2008 PricewaterhouseCoopers Profit Track 100

    - Finalists in the National Business Awards, 3i Growth Strategy category,
      2008

    - Finalist in the National Business Awards, Business of the Year
      category, 2007, 2009 and Highly Commended in 2008

    - Named in the Sunday Times 2006, 2007, 2008 and 2009 HSBC Top Track 250
      companies

    - Regional winner of the National Training Awards, 2007

    - Winner of the BITC Health, Work and Well-Being Award, 2007

    - Highly Commended in the UK National Customer Service Awards, 2006

    - Winner of the Tamworth Community Involvement Award, 2006. Finalist in
      2008

    - Highly Commended in The Press Best Link Between Business and Education,
      2005 and 2006. Winner in 2007

    - Finalist in the National Business Awards, Innovation category, 2005

    For more information on CPP click on http://www.cpp.co.uk

    For more information or to arrange a time for interview with Head of
    Mobile, Danny Harrison, please call Band & Brown Communications:

    - Eoghan Hughes - +44(0)20-7419-6976 / +44(0)7852-881-983

    - Hester Decouz - +44(0)20-7419-7339 / +44(0)7963-187029

    - James Dawkins - +44(0)20-7419-6951 / +44(0)7875-576-694

SOURCE The CPP Group Plc