Kevin Gillan is the Managing Director of SquareTrade Europe, an AllState company.
Phone theft is reaching alarming levels in Europe, particularly in London. When walking on bustling streets, many fear their devices could be stolen. I’ve seen people hold their phones with both hands or invest in neck cords to help keep their devices secure, and some flinch at the sound of approaching motorbikes or e-bikes, which have been used to steal phones in broad daylight.
My company, which insures phones and electronics, has headquarters in London, and I’ve found the sense of unease is palpable. Mobile devices have become prime targets for thieves who thrive in busy environments. This isn’t a new phenomenon, though, is it? Many of us can remember the sound of “Attenzione, pickpocket!” echoing in our minds, thanks to the viral videos that swept through social media last year. TikTok and other social media platforms remain awash with “storytime” videos, warnings and tips on how to avoid being a victim of phone theft, showing the volume of thefts and the anxiety around them.
What I believe has changed, though, is the scale and sophistication of the problem. Criminals are often motivated by the profitability of the trade, knowing that smartphones, tablets and other portable devices, which can be easily swiped away, are not only expensive but also easy to offload.
It’s a simple equation: It’s quick, profitable and the likelihood of being caught is low. In the U.K. alone, an estimated 78,000 people had their phones or bags stolen in the past year, according to a September article by the U.K. government’s Home Office.
Loss hurts because devices mean more than ever before.
There was a time when leaving the house meant mentally checking for your phone, keys and wallet. But now, all we need is a phone. Much of our lives—photos, contacts, financial data and even work tools—are consolidated onto one device.
Mobile phones today are far more than just tools for making calls; they’ve become our wallets, hold our memories, save our passwords and help us interact with the world. These devices hold valuable personal and business information. Simply put, our devices do more and mean more to us than ever before.
When a phone is stolen or lost, we not only lose access to our physical device but also to our individual and personal digital universe. It now means much more than missing a few calls; it can mean losing access to two-factor authentication, which can prevent you from accessing apps like bank or work accounts. Personal memories, contacts and documents that haven’t been backed up are also at risk.
Increasingly, one of the most concerning risks is our digital identities. With more sensitive information than ever stored on these devices, from financial data to personal details, the loss of a phone can lead to identity theft and privacy breaches. From my perspective, current protections, while improving, are still catching up with the rapid pace at which these devices have become intertwined with our lives.
Collaboration and change is needed.
The issue of phone theft is particularly rife in the U.K., where in the past 12 months, there has been the equivalent of more than 200 snatch thefts each day—the highest rate in a decade, according to the previously mentioned Home Office article.
While this has prompted a government consultation, addressing the issue through ramped-up punishments or increasing police activity alone will not solve it. Commander Richard Smith of the U.K. National Police Chiefs’ Council said in the Home Office article, “We cannot arrest our way out of this problem. Manufacturers and the tech industry have an important role in reducing opportunities for criminals to benefit from the re-sale of stolen handsets.” And I agree.
The question we must ask ourselves is: Why are smartphones so appealing to those who steal them? I believe the answer lies in their perceived value, not just as hardware but also as gateways to huge amounts of personal data and digital identity. While phones themselves will always represent valuable commodities because of their components and parts, they are also valuable because the thieves could gain access to personal data or sell them on secondary markets. Modern security features like encryption and biometric locks have helped, but these measures are not foolproof. Many phones, once stolen, are sold overseas, where they can be unlocked and repurposed.
To deter this threat, a more innovative, multifaceted approach is required—one that looks at how this business model can be disabled. This is where manufacturers, service providers and the mobile ecosystem can collaborate.
What does the future look like?
The device insurance industry is already playing a role in mitigating the impacts of phone theft, but there’s an opportunity for insurers to lead the charge in transforming the way we think about device security. The future could involve more proactive collaboration between insurers and manufacturers to not just compensate users for their losses but also actively reduce theft rates by advocating for stronger, universal security standards across the industry.
For instance, insurance policies could incentivize the use of advanced security features by offering better coverage for customers who activate certain protections or choose devices that meet higher security thresholds. In essence, the goal would be to create a market dynamic where secure phones are not just the standard but the expectation.
While governments can continue to increase penalties and improve law enforcement responses to phone theft, these efforts alone will not resolve the issue. As I see it, the solution lies in the mobile ecosystem—from manufacturers to service providers, insurers and regulators all working together to make device theft pointless. I believe that only by addressing both the hardware and data security challenges can we create a future where phone theft is a relic of the past.
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