Research Reveals Pre-Owned Luxury Watch Retailers Face Rising Fraud Risks

Oct 14 — High-end retailers of pre-owned luxury watches are increasingly concerned about becoming the victims of fraud, according to new research¹ from The Watch Register², the world’s largest and most established international database of lost and stolen luxury watches.

The international study of pre-owned luxury watch retailers across the US, Europe, Asia and the Middle East points to a clear upward trend in fraudulent activity, with more than two-thirds (68%) of retailers reporting that fraud is on the rise within their business.  Whilst a smaller proportion (7%) say the increase has been dramatic, the majority point to a steady escalation, suggesting that fraud is now a persistent operational challenge for retailers, rather than an occasional, isolated risk.

Retailers report facing a wide range of fraud types, reflecting the growing sophistication of criminal activity in the global pre-owned luxury watch market.  The most common fraud cases involve the sale of counterfeit watches (59%), followed by consignment fraud (57%) where a watch is entrusted for sale to another business that fails to pay them. The findings also highlight the role that falsified or inadequate documentation plays in enabling fraud.  

Types of fraud encountered by retailers of pre-owned luxury watches and their prevalence

 As counterfeit papers become more sophisticated, retailers are finding it increasingly difficult to verify authenticity, leaving transactions more vulnerable to risk.  While most retailers say they trust the legitimacy of watch papers, nearly a third (29%) admit they are not confident in their ability to spot high-quality fake documentation.  

Attitudes towards buying watches without original box and papers further shed light on the risk attached to purchasing pre-owned watches, with three in five (60%) retailers avoiding such transactions, primarily due to concerns that the watch may be counterfeit (cited by 92% of retailers who avoid buying without the original box and papers) or stolen (50%).

Where consignment fraud schemes are concerned, these are usually facilitated by an excess of trust and absent or inadequate consignment agreements that lack appropriate wording to protect the seller of the watch. In order to protect their interest, retailers and owners consigning watches for sale must ensure that consignment agreements state that ownership title to the watch remains with them until funds from the sale are remitted. Any buyer should be informed of the title retention clause so that they are aware full title only passes when the watch is paid in full.  Some notorious watch consignment fraud schemes revealed in 2025 include Manchester Watch Hub (UK), Timepiece Gentleman (USA) and Toke Match (Japan).

The financial impact of fraud is being felt across the sector.  A third (33%) of retailers say they have experienced financial losses as a result of acquiring a counterfeit watch in the past three years, with many reporting repeated incidents over that period.  

Antonia Kimbell, Senior Manager of The Watch Register, said: “Fraud is becoming an increasingly significant issue for the pre-owned luxury watch market, affecting businesses at every stage of the transaction process.  We frequently see cases involving counterfeit watches and papers, as well as more complex issues such as fraudulent chargeback and consignment fraud requests, which often leave businesses exposed to significant financial loss.

“No single safeguard is sufficient on its own. Retailers should consider taking a layered approach to their due diligence, implementing thorough KYC checks on transacting parties, detailed sales agreements, heightened checks on authenticity and the validity of paperwork, as well as verification of serial numbers before purchase to protect both their business and customers.” 

Background to The Watch Register database:

In 2025 The Watch Register reached a landmark 5,000 lost and stolen watches identified since the service was founded more than a decade ago.  In the past year alone, stolen watches identified by The Watch Register have been traced across 34 countries spanning North and South America, Europe, Asia, North Africa, Australia and the Middle East, underlining both the global scale of the problem and the reach of the platform.

The Watch Register database, which offers a global 24/7 service, provides a simple way for purchasers of pre-owned watches to check if a watch offered for sale is reported stolen, lost, or counterfeit. The Watch Register combines complex computer algorithms with human expertise and intervention to actively identify lost and stolen watches on the global pre-owned market. The database is used by watch dealers, jewellers, pawnbrokers and auction houses to identify stolen watches prior to transactions. From the moment a stolen watch is located, The Watch Register’s specialist recoveries team steps in to secure the watch and facilitate a recovery for the rightful owner.

Fifty per cent of watches The Watch Register finds are located within a year of the theft and 35% within six months. One third of the stolen watches located by The Watch Register database are offered with box and papers, therefore buyers should not assume that the presence of paperwork indicates legitimacy of ownership.