diff --git a/lib/Conch/Controller/DeviceReport.pm b/lib/Conch/Controller/DeviceReport.pm
index ca620a908..a298d8bfe 100644
--- a/lib/Conch/Controller/DeviceReport.pm
+++ b/lib/Conch/Controller/DeviceReport.pm
@@ -100,6 +100,14 @@ sub process ($c) {
     });
 
     if (not $device) {
+        if (my $serial_device = $c->db_devices->find({ id => $c->stash('device_id') })) {
+            $serial_device->health('error');
+            $serial_device->update({ updated => \'now()' }) if $serial_device->is_changed;
+        }
+        if (my $system_uuid_device = $c->db_devices->find({ system_uuid => $unserialized_report->{system_uuid} })) {
+            $system_uuid_device->health('error');
+            $system_uuid_device->update({ updated => \'now()' }) if $system_uuid_device->is_changed;
+        }
         return $c->status(400, { error => 'could not process report for device '
             .$c->stash('device_id')
             .($c->stash('exception') ? ': '.(split(/\n/, $c->stash('exception'), 2))[0] : '') });
diff --git a/t/integration/device-reports.t b/t/integration/device-reports.t
index 07104218d..d86c991c9 100644
--- a/t/integration/device-reports.t
+++ b/t/integration/device-reports.t
@@ -91,6 +91,12 @@ subtest 'system_uuid collisions' => sub {
 
     $t->post_ok('/device/i_was_here_first', json => $report_data)
         ->json_cmp_deeply({ error => re(qr/could not process report for device i_was_here_first.*duplicate key value violates unique constraint "device_system_uuid_key"/) });
+
+    $existing_device->discard_changes;
+    is($existing_device->health, 'error', 'existing device had health set to error');
+
+    my $test_device = $t->app->db_devices->find('TEST');
+    is($test_device->health, 'error', 'TEST device had health set to error as well');
 };
 
 done_testing;