‘Black Market’ For Stolen Smartphones Exposed

A BBC undercover investigation exposed a black market of shops and traders in London dealing in stolen smartphones.

Eight Apple and Samsung phones loaded with personal data like photos, contacts, call history and messages were blocked or reported as stolen to the networks. The undercover researcher then offered the phones for sale with messages on the screens reading: “This mobile has been stolen. This phone has now been locked. You have been reported to the authorities.” He then posed as a smartphone thief and shopped them around London. He also captured on camera two traders who bought Samsung S3 and iPhone 4 devices from him. The undercover reporter stated that the phones were stolen when he handed them to traders.  The shops involved did not make any comment.

Alex McBride, a criminal barrister and author says that handling stolen goods carries a 14-year maximum prison sentence. “Handling stolen goods is an offence under the Theft Act. If you were handling £250,000 worth of stolen phones a year it would amount to pretty serious criminality. You are encouraging people to go thieving and robbing by monetizing their ill-gotten gains on the black market” he added.

The stolen phones had ‘find-my-phone’ protection activated which means that their IMEI numbers – the phone’s fingerprint – indicate they were not useable once reported stolen.  But by giving a device a new IMEI number, it could be used as a normal phone and restoring its default software disables “find-my-phone” protection.

Around 40,000 smartphones have been stolen over the past twelve months in London, according to the reports revealed by the Metropolitan Police and British Transport Police. Experts suggest that a redesign of smartphones with the IMEI number on a ‘read-only’ part of the device would prevent theft.  Samsung and Apple have made no comment.

Infoeditor