The Best Techie blog published a very interesting post about how easy it is for criminals to file fraudulent insurance claims for mobile devices. The problem isn't just the ease that the fraud is committed, but also that consumers probably aren't aware of fraud claims submitted against their accounts until they file a valid insurance claim:
"If you use one of the major carriers in the U.S. such as AT&T, Verizon, T-Mobile, and/or Sprint the insurance you buy comes from a company called Asurion Insurance Services, Inc... : it appears Asurion’s claim system is very easy to defraud... The only real deterrent in the claim system is that you need to sign an affidavit and provide a photo ID but if high school students can get fake IDs, I’d imagine for a fraudster obtaining a fake ID to scan is laughably easy..."
The I've Been Mugged blog has reported about Asurion. When evaluating mobile insurance offers, it is wise for consumers to do the math first. You'll want to decide if you want malware protection, and if the one- or two-year total of monthly insurance premiums exceeds the cost of your mobile device.
According to the Best Techie report, the fraudster used a combination of the victim's name and valid phone number with a different residential address. You'd think that Asurion would have easily spotted that and contacted their customer at their current address to confirm the claim and the new address.
Consumers pay good money for mobile device insurance, and deserve better protection against insurance fraud. What are your opinions?