A £700 phone leaves your warehouse. The courier marks it as delivered. Then the customer says nothing arrived and asks for a refund. What happens next?
For a phone retailer, recycler or marketplace seller, that situation can quickly become expensive. Perhaps the courier delivered the parcel to the wrong address. Someone might have stolen it after delivery. Alternatively, the handset could have reached its destination before the buyer made a false claim.
At first, you may have no reliable way to tell which explanation is correct.
However, the answer is not to accuse the customer or immediately block the handset. Instead, businesses need to investigate the claim, protect their evidence and understand which safeguards they can legally use.
This guide explains how UK mobile phone sellers can handle disputed deliveries, suspicious returns and phone refund fraud. It also explores how MobiBLOCK helps eligible businesses record their interest in a handset or request IMEI network blocking when the circumstances justify it.
An order dispute does not prove that a customer has committed fraud. MobiBLOCK can support an evidence-led response, but an IMEI interest marker and a network block serve different purposes and have different eligibility requirements.
Why phone refund fraud deserves attention in 2026
Online retailers already deal with missing parcels, damaged goods and unwanted returns. Most customers raise genuine concerns. However, dishonest claims create additional costs for businesses that depend on reliable fulfilment and customer service.
In May 2026, Cifas published research led by the University of Portsmouth into the online refund-fraud economy.
The researchers examined nearly 500,000 posts across cybercrime forums and messaging communities. They identified several methods, including false non-delivery claims, empty-box complaints, fake return tracking and attempts to return substitute goods.
Furthermore, the research estimated that refund fraud could cost UK online retailers as much as £5.76 billion annually.
That figure represents the upper end of a modelled estimate, rather than confirmed financial losses. It also covers online retail more broadly, not just mobile phones.
Nevertheless, the findings highlight why retailers should take suspicious claims seriously while continuing to treat legitimate customers fairly.
Why mobile phones create a particular risk
Smartphones can cost hundreds or even thousands of pounds. They are also compact, easy to transport and attractive to second-hand buyers.
Consequently, one disputed flagship handset can create a substantial loss for a small retailer.
Consider a business that sells a refurbished phone for £700. After purchasing the handset, carrying out diagnostics, completing repairs and paying fulfilment costs, the retailer may earn a relatively modest margin.
If the transaction ends in an unrecovered loss, the business risks far more than the expected profit from that individual sale.
Meanwhile, companies that rent, lease or finance devices face additional risks because their financial interest may continue long after the handset leaves their premises.
Fraud is affecting the wider mobile industry
A separate Cifas Fraudscape report from March 2026 recorded more than 444,000 cases in its National Fraud Database during 2025.
The report also highlighted account-takeover risks affecting mobile phone products.
These figures do not measure fraudulent phone delivery claims specifically. However, they provide additional evidence that mobile businesses operate within a wider environment of fraud and financial crime.
For this reason, sellers need more than basic parcel tracking. They also need accurate inventory records, clear investigation procedures and appropriate device-level controls.
Does an item-not-received claim mean the buyer is committing fraud?
No. A missing-delivery complaint does not automatically indicate dishonesty.
For example, a courier may deliver a parcel to the wrong property. Someone might take the package from an insecure doorstep. Alternatively, the delivery driver may scan the parcel before completing the delivery.
In each case, the retailer may see a delivery confirmation even though the customer never received the phone.
Therefore, businesses should investigate what actually happened before deciding how to handle a refund or dispute.
What UK consumer law says about delivery risk
Under section 29 of the Consumer Rights Act 2015, the trader generally carries the risk until the consumer, or someone the consumer identifies, takes physical possession of the goods.
The law provides a specific exception when the consumer independently commissions a carrier that the trader did not offer.
As a result, a courier’s delivery notification does not automatically settle every dispute about whether the buyer actually received the goods.
Sellers must consider the evidence, applicable consumer rights and any marketplace rules before reaching a conclusion.
Equally, those protections do not mean businesses must ignore credible evidence of dishonesty.
The sensible approach is to investigate genuine problems fairly while maintaining clear procedures for suspicious claims.
Four situations mobile phone sellers should prepare for
Refund fraud can take several forms. Moreover, each situation requires a different response because the available evidence and the seller’s rights may vary.
1. The customer says the phone never arrived
The courier confirms delivery, but the buyer says the parcel never reached them.
First, check the tracking details, delivery address and proof-of-delivery information. Next, review any photographs, signatures or delivery instructions.
Then contact the carrier if the records leave important questions unanswered.
For example, a photograph showing a parcel outside a building may help identify the delivery location. However, it does not necessarily prove that the customer took possession of the handset.
Therefore, retailers should follow the courier investigation and the marketplace’s resolution procedures before making a decision.
2. The customer returns a different phone
A seller dispatches an expensive smartphone. Later, the customer opens a return and sends back another device.
The returned handset may look similar, but its IMEI does not match the original stock record.
Alternatively, the parcel might contain an older phone, unrelated goods or no handset at all.
In these circumstances, accurate dispatch records become particularly valuable.
The retailer can compare the original device identifier, model, condition photographs and order details against the returned item.
Nevertheless, a mismatch does not automatically establish who caused the problem. The business should preserve the evidence and investigate the discrepancy before taking further action.
3. A rental customer does not return their handset
Phone rental companies face a slightly different challenge.
They may own the handset throughout the rental agreement. However, the customer still has possession of it until the agreed return date.
If the customer misses that deadline, the business should first review the agreement and contact them.
Sometimes a customer simply forgets to return the device. In other cases, repeated failures to respond may raise more serious concerns.
Consequently, rental providers need evidence of ownership, the IMEI, the contractual return date and their attempts to recover the handset.
An eligible ownership or rental-interest marker may help record the company’s position. However, an overdue return does not automatically justify network blocking.
4. A customer sells a phone with an outstanding finance interest
A trade-in business may receive a handset that looks almost new and works perfectly.
However, another company might still hold a financial interest in the device.
For example, a rental or finance provider may have a legitimate claim under an existing agreement.
Recording that interest against the handset’s IMEI can help participating businesses identify the issue during their own checks.
As a result, the trade-in buyer has an opportunity to investigate before completing the purchase.
Importantly, an active finance interest does not prove that the person offering the handset has committed fraud.
What evidence should phone retailers collect before dispatch?
The easiest time to collect reliable evidence is before a dispute begins.
Once a handset leaves the warehouse, staff cannot always recreate the original condition, packaging or device details.
Therefore, businesses should make basic evidence collection part of their everyday fulfilment process.
Record the IMEI against the correct order
Every smartphone has a device identifier that helps distinguish it from other handsets.
Before dispatch, staff should record the IMEI and link it to the relevant order. For dual-SIM devices, they should capture each relevant IMEI where appropriate.
In addition, the stock record should identify the correct make, model and other important characteristics.
This creates a reliable starting point if the customer later returns a different handset or questions the transaction.
Keep photographs and packing records
Photographs can help establish the device’s condition before dispatch.
For higher-value orders, businesses may also choose to record the packing process, parcel weight and shipping label.
However, no single photograph or recording guarantees that a dispute will end in the seller’s favour.
Instead, the records work together to provide a clearer account of what happened.
Choose the right delivery service
A cheap delivery option may look attractive when a retailer ships hundreds of parcels each month.
However, saving a small amount on postage can prove expensive if the selected service fails to meet marketplace protection requirements.
Therefore, sellers should match the delivery method to the handset’s value and the platform’s rules.
Check eBay’s signature requirements
For example, eBay UK’s seller-protection guidance requires signature confirmation for relevant orders totalling £450 or more.
Its item-not-received rules also place conditions on tracking information and delivery evidence.
Consequently, a seller posting a £600 or £900 phone should review those requirements before choosing a courier.
Other marketplaces may apply different rules. For this reason, businesses should always check the current policy for the platform handling the order.
Buyer says the phone wasn’t delivered: what should you do?
A consistent process makes these situations easier to manage.
It also helps employees avoid decisions based on assumptions or frustration.
Step 1: Acknowledge the customer’s complaint
Start by confirming that you will investigate the delivery.
Ask the customer for relevant information, but avoid language that assumes they have acted dishonestly.
This keeps communication professional and gives both parties an opportunity to explain the situation.
Step 2: Investigate the courier records
Next, review the tracking history, delivery address, signature and any available photographs.
If the information appears inconsistent, open an investigation with the carrier.
For example, the courier may need to clarify where the driver left the parcel or whether someone else accepted it.
Step 3: Identify the exact handset
Retrieve the IMEI and compare it with the original order and inventory records.
Additionally, check whether the business has recorded any relevant ownership, rental or finance interest.
If the case involves a return, compare the identifier of the incoming handset with the one you dispatched.
Step 4: Follow consumer-rights and marketplace procedures
Respond within the relevant deadlines and provide accurate information.
Although seller-protection rules can help businesses defend legitimate transactions, they do not override applicable consumer law.
Therefore, retailers must continue to honour genuine customer rights throughout the investigation.
Step 5: Consider whether device-level action is appropriate
Once the business understands the facts, it can assess whether an IMEI interest marker or another permitted action may help.
However, staff should not treat every disputed delivery as an eligible loss or theft report.
Instead, they should check ownership, supporting evidence and the service’s eligibility requirements before proceeding.
Step 6: Record the outcome and correct any errors
Finally, record the outcome of the investigation.
If the handset returns to the business or new evidence changes the decision, update the relevant records promptly.
Likewise, remove or correct any device-status information that no longer applies.
Do not take IMEI status action simply because a customer disputes an order. Require a documented reason, supporting evidence, an authorised reviewer and a clear way to correct mistakes.
How MobiBLOCK helps businesses protect mobile phone assets
MobiBLOCK is MobiCode’s IMEI-based asset-protection service.
It helps eligible organisations record relevant ownership or financial interests in devices. It also provides a route to request UK network blocking for qualifying lost or stolen handsets.
Businesses that sell, rent, lease or finance mobile devices can explore the service as part of their wider asset-management procedures.
However, MobiBLOCK does not replace delivery investigations, legal obligations or customer-service processes.
Instead, it adds device-level controls that businesses can use when they have a legitimate reason and meet the relevant conditions.
Record an ownership or financial interest from 10p per device
MobiCode currently advertises its General List marker service from 10p per device.
This allows eligible businesses to record a relevant ownership, rental, lease or finance interest against a handset’s IMEI.
Consequently, participating businesses that check the device may see an active interest and investigate before purchasing or processing it.
For example, a rental provider might register its eligible interest in handsets that remain company assets throughout their rental agreements.
However, an interest marker does not disable the phone or guarantee that every buyer will identify the record.
Its purpose is to improve visibility of a legitimate interest, rather than automatically prevent resale or recover missing stock.
Request eligible UK network blocking for £1
MobiCode also advertises a £1 network-blocking request for an eligible lost or stolen handset.
Where the relevant organisations accept and apply the request, participating UK mobile networks may restrict the device’s cellular access through its IMEI.
Nevertheless, eligibility matters.
A disputed refund, late rental return or unpaid invoice does not automatically justify a network block.
Therefore, businesses should confirm their authority, review the supporting evidence and check MobiCode’s current requirements before submitting a request.
MobiCode also advertises free removal when a qualifying marker or block no longer applies.
All pricing remains subject to the provider’s current conditions and any applicable VAT.
How much could IMEI asset protection cost a business?
For businesses managing large device inventories, the starting cost of recording an interest can be relatively modest.
Consider a rental company with 1,000 smartphones in its fleet.
If the company qualifies to record a General List marker against each handset at the advertised 10p starting price, the calculation looks like this:
Illustrative cost before applicable VAT and other conditions.
Of course, that £100 does not insure the phones or guarantee their recovery.
Nevertheless, it illustrates the relatively low starting cost of maintaining an eligible device-level interest record across a sizeable fleet.
Start with a smaller group of valuable devices
A business does not necessarily need to introduce a new process across its entire inventory immediately.
Instead, it could begin by reviewing its highest-value handsets, rental devices or finance assets.
From there, the company can discuss which records and actions MobiBLOCK supports, how staff should verify eligibility and how the process fits its existing systems.
This approach also gives the business an opportunity to test its internal procedures before expanding them.
What is IMEI blocking and how does it work?
An IMEI identifies cellular equipment and helps mobile networks recognise individual devices.
According to the GSMA Device Check guidance, network operators can restrict a handset’s cellular access by blocking its IMEI.
Furthermore, participating operators can share relevant device-status records through the GSMA Device Registry.
As a result, an appropriate block can affect a handset even when someone changes the SIM card.
Changing the SIM does not remove an IMEI block
A SIM identifies a mobile subscription. By contrast, an IMEI identifies cellular equipment.
Therefore, putting a different SIM into the same handset does not automatically remove a network-level IMEI restriction.
However, network coverage and the effectiveness of a block depend on the participating operators and applicable systems.
What IMEI blocking cannot do
Network blocking has important limitations.
For example, an IMEI block does not necessarily stop the phone from connecting to Wi-Fi.
It also does not automatically locate the device, erase stored data or prevent every possible use outside participating networks.
Similarly, network blocking differs from Apple Activation Lock, Android Factory Reset Protection and remote device management.
Businesses should therefore choose the appropriate control for the actual problem rather than expecting one service to handle every type of loss or security incident.
Could blocking a disputed phone create problems for the seller?
Yes. Businesses can create additional problems when they act on incomplete or inaccurate information.
For example, a genuine customer may never have received the handset. Alternatively, a courier might have delivered the parcel to the wrong person.
In another case, a finance record may remain active after the customer has already completed the agreement.
Consequently, an incorrect device-status action could affect someone who has done nothing wrong.
Confirm your authority before taking action
First, establish whether your business owns the device, holds an eligible financial interest or has another valid basis for the proposed action.
Next, verify the IMEI against the original transaction.
Then review the evidence and check the eligibility rules for the specific service.
Finally, require an authorised person to approve any high-impact decision.
This process helps businesses avoid treating an ordinary customer-service disagreement as a confirmed fraud case.
Keep records accurate and up to date
Companies should also maintain a clear route for correcting mistakes.
If a customer returns the handset, settles the relevant agreement or provides evidence that changes the situation, the company should review the record promptly.
In addition, businesses must consider data-protection obligations when device records link to identifiable individuals.
The Information Commissioner’s Office explains that organisations sharing personal information for fraud prevention must consider accuracy, necessity, security and retention.
Therefore, device-level protection should form part of a properly managed business process.
How MobiBLOCK and MobiCHECK work together
MobiCode offers different products for different stages of the mobile device lifecycle.
MobiBLOCK helps an eligible organisation record a relevant device interest or request an appropriate network block.
Meanwhile, MobiCHECK helps trade-in businesses, recyclers and professional buyers investigate device-status information before purchasing or processing a handset.
In other words, the products address two sides of the same commercial problem.
For the business protecting its assets
A finance, rental or device-owning organisation can use an eligible MobiBLOCK marker to communicate its legitimate interest in a particular handset.
Where a device meets the stricter requirements for loss or theft, the organisation may also explore the network-blocking route.
For the business buying used phones
A trade-in shop can use MobiCHECK to investigate available device-status records before paying for stock.
MobiCode says MobiCHECK can surface relevant MobiBLOCK flags and blocks.
Consequently, participating businesses may identify an issue before the phone enters the normal refurbishment or resale process.
However, no check can guarantee that every future problem will appear in advance.
The benefit comes from making relevant information available when businesses need to make purchasing decisions.
Build a stronger fraud-prevention process for valuable phone orders
The most useful improvements often involve everyday procedures rather than complicated technology.
For example, staff should know which IMEI belongs to each order, what delivery evidence the business holds and when a dispute requires senior review.
Likewise, they should understand the difference between a legitimate customer complaint, an unresolved discrepancy and evidence that may justify a device-status action.
Match the response to the circumstances
| Situation | First response | Device-level consideration |
|---|---|---|
| Customer reports non-delivery | Investigate courier records and follow consumer-rights procedures | Do not treat the claim alone as grounds for blocking |
| Returned phone has a different IMEI | Compare dispatch records and investigate the discrepancy | Assess evidence, ownership and eligibility before taking action |
| Rental handset is overdue | Review the agreement and contact the customer | An eligible interest marker may help; a late return alone does not justify blocking |
| Evidence supports eligible loss or theft | Follow reporting, insurance and recovery procedures | Ask MobiCode whether a network-blocking request qualifies |
| Business recovers the device or finance ends | Close the case and update the relevant records | Correct or remove any marker or block that no longer applies |
Why a consistent process matters
Without clear procedures, employees may handle similar disputes in completely different ways.
For example, one team member might immediately refund a suspicious transaction, while another might wrongly accuse a legitimate customer.
By contrast, a consistent investigation process helps everyone follow the same evidence requirements and approval rules.
As a result, the business can reduce unnecessary losses while protecting genuine customers.
Make your next disputed phone order easier to investigate
No software can determine whether a customer is telling the truth simply by examining a delivery notification.
Instead, effective protection depends on accurate records, fair investigations and controls that match the circumstances.
For mobile phone sellers, that means connecting the order, handset IMEI, courier evidence and customer-service history.
For rental and finance businesses, it also means maintaining reliable records of ownership and contractual interests.
MobiBLOCK can add device-level protection to those processes. Its current published offering includes eligible ownership or financial-interest markers from 10p and UK network-blocking requests for qualifying lost or stolen devices at £1 per handset.
However, the product works best when businesses understand the distinction between those services and apply the appropriate eligibility rules.
Ultimately, the most useful question is not simply whether a business can block a phone.
It is whether the business has the evidence, authority and legitimate reason to take that action.
Protect valuable mobile phone assets with MobiBLOCK
Does your business handle valuable smartphones, rental handsets, finance agreements or device-loss investigations?
MobiBLOCK helps eligible businesses record legitimate device interests and request appropriate network-blocking actions.
You can explore the service to understand its current capabilities, eligibility requirements and published pricing.
New to MobiCode?
Contact the MobiCode team to discuss how MobiBLOCK could support your device-protection, rental or asset-management process.
Already a MobiCode customer?
Use the dedicated Blocklist Access page in MobiCode Server to request access through your existing account.
Keep accurate records, investigate fairly and protect the devices you have a legitimate reason to protect.
Frequently asked questions about phone refund fraud
What should a UK seller do if a buyer says a phone never arrived?
First, review the courier tracking, delivery address and available evidence. Then investigate any discrepancies through the carrier or marketplace. The seller must also meet applicable consumer-rights obligations. Importantly, a delivered scan does not automatically prove that the buyer received the handset.
Can a business block a phone because the buyer requests a refund?
No, a refund request alone does not justify network blocking. MobiBLOCK offers a separate blocking route for eligible lost or stolen handsets, subject to the relevant requirements. Therefore, businesses should investigate the facts and establish their authority before taking any device-level action.
How much does MobiBLOCK cost?
MobiCode currently advertises General List ownership or financial-interest markers from 10p per device. It also advertises £1 per eligible UK lost-or-stolen handset network-blocking request and free removal when resolved. However, businesses should confirm current pricing, VAT and eligibility with MobiCode.
Does an IMEI interest marker stop a phone working?
No. An interest marker records a relevant ownership, rental, lease or finance interest. It can help participating businesses identify that interest during device checks. However, it does not itself restrict cellular network access.
Does changing the SIM remove an IMEI block?
No. The SIM identifies the mobile subscription, whereas the IMEI identifies the cellular device. Consequently, changing the SIM does not automatically remove a network-level IMEI restriction. The effect still depends on participating mobile networks.
Can a rental or finance company record its interest in a handset?
Yes, MobiBLOCK supports eligible ownership, finance, rental and lease interests. However, the company must substantiate its interest and maintain accurate records. It should also remove the marker when the interest no longer applies.
Does eBay require a signature for expensive phone deliveries?
Under eBay UK’s published seller-protection rules, relevant orders totalling £450 or more require signature confirmation for item-not-received protection. In addition, sellers must meet the platform’s tracking requirements. Therefore, check the current policy before dispatching a high-value handset.
Sources and further reading
UK refund fraud research
Cifas and University of Portsmouth — Online Refund Fraud Research, 21 May 2026
Research into the refund-fraud economy, including dishonest non-delivery claims, empty-box complaints and estimated financial losses.
Cifas — Fraudscape 2026, 12 March 2026
National Fraud Database trends and wider fraud risks affecting UK businesses and mobile products.
Consumer rights and seller protection
Consumer Rights Act 2015 — Section 29
UK legislation explaining when the risk associated with goods generally transfers from a trader to a consumer.
Marketplace guidance covering tracking requirements, delivery evidence and signature confirmation for higher-value orders.
IMEI blocking and device identification
Information about IMEI identifiers, device-status records and cellular network blocking.
GSMA — IMEI Database and Device Registry
Details about the device registry and how participating organisations and mobile operators share relevant block-list information.
Fraud prevention and personal information
ICO — Sharing Personal Information for Fraud Prevention
Guidance about accuracy, necessity, security and appropriate handling of information during fraud-prevention activities.
MobiCode products
Product information covering IMEI interest markers, eligible network-blocking requests, published pricing and access requirements.
Device-status checking for professional mobile phone buyers, recyclers, refurbishers and trade-in businesses.