How do they do it?

What appears to be a normal repair shop is often part of a well-organised fraud network. People carefully opening phones, replacing screens, changing parts, and sometimes even tampering with IMEI numbers so the device can be sold again or claimed a second time.

This is one of the more sophisticated forms of device fraud happening in South Africa right now.

Here’s how it typically works:A phone is stolen or legitimately claimed from an insurer. Instead of disappearing, it enters an underground repair chain. The device gets a new screen, new casing, and sometimes a cloned or altered IMEI. It is then either sold on the second-hand market as “refurbished” or insured again under a new policy so another claim can be submitted.

The same physical phone ends up generating multiple payouts from different insurers or brokers. Because most insurers only see their own data, these repeat claims often go undetected until it is too late.

This tactic is costing the short-term insurance industry millions every year. It explains why fraud cases increased by 46% and why device claims remain one of the hardest areas to control.

Here’s where a shared device registry makes a big difference:

When a device is registered on DeviceRegister.co.za, its full history travels with it. Even if the phone gets a new screen or looks brand new, the original IMEI and serial number stay linked to previous loss reports. Claims teams can instantly see that the device was already claimed or reported stolen, making double claiming or fraudulent resale much harder.This breaks the cycle. The repaired phone becomes far less valuable to criminals because it carries a permanent digital record that honest insurers can see.

DeviceRegister.co.za was built to close exactly these loopholes and give South African insurers real-time visibility across the entire industry.

Take Action Today

• Register your company for free and start checking every device before paying claims
• Book a 15-minute demo and see how easy it is to spot repaired and previously claimed devices

The workshops are working every day. Make sure your fraud controls are working just as hard.