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Inside the Stolen Smartphone Black Market In London

First time accepted submitter WebAgeCaveman (3615807) writes in with news about just how big the stolen smartphone black market is. "A black market of shops and traders willing to deal in stolen smartphones has been exposed by a BBC London undercover investigation. Intelligence was received that some shops across a swathe of east London were happy to buy phones from thieves. Two traders were filmed buying Samsung S3 and iPhone 4 devices from a researcher posing as a thief - despite him making it clear they were stolen. The shops involved have declined to comment."

13 of 109 comments (clear)

  1. Changing IMEI is illegal by kentrel · · Score: 5, Informative

    Under a 2002 law it was made illegal to change the IMEI unless you're the manufacturer. However, under a 2006 amendment to the Violent Crime Reduction Act 2006 it was made illegal to even OFFER to do this. You don't have to actually change the IMEI to commit the offense, you just have to offer or say you will. Punishment is up to 5 years in prison. The smartphone blackmarket could be wiped out just by enforcing this law.

    1. Re:Changing IMEI is illegal by zenith1111 · · Score: 3, Insightful

      Your car is also your property and you can't change the VIN either.

    2. Re:Changing IMEI is illegal by janoc · · Score: 3

      That sounds as if the criminals actually cared about it being illegal. One of the guys has mugged someone to get the phone in the first place and the other one is dealing in them - both crimes with likely a lot stiffer sentence than a stupid IMEI change. C'mon ....

      Don't be ridiculous - until there stops being demand for extremely cheap phones (so that one can show off in front of the peers) and the manufacturers and network operators actually start doing something about it (Why is IMEI changeable in the first place?), trade in stolen phones will continue. Unfortunately, it would have to stop being profitable for them. All those IMEI blocks and such by the operators are ineffective if the phone can have the IMEI changed and not even all of them are implementing those blocks.

      The other issue is that when even BBC can easily find and film (!) fences dealing in stolen goods, then what is the police doing? Ah, right, that is UK, so they are likely busy detaining journalists as terrorists, there is no time to fight petty theft and muggers.

    3. Re:Changing IMEI is illegal by Sneftel · · Score: 3, Insightful

      It would be trivial for manufacturers to make the IMEI absolutely unchangeable using fuse bits. The fact that they have not suggests that they see widespread phone theft as an overall benefit for them, which makes sense -- it drives sales of new phones among those able to afford them.

      Enforcement of those laws would help, but enforcement of such things is always expensive and imperfect. Simpler and more effective to mandate that manufacturers make IMEIs absolutely unchangeable.

      --
      The opinions stated herein do not necessarily represent those of anybody at all. Deal with it.
    4. Re:Changing IMEI is illegal by Sneftel · · Score: 3, Informative

      Storing the IMEI in PROM instead of EEPROM would have no effect on production costs. Fuse bits are, if anything, cheaper than their rewritable equivalent (though IMEIs are what, 64 bits, so honestly it wouldn't make a cent of difference).

      --
      The opinions stated herein do not necessarily represent those of anybody at all. Deal with it.
    5. Re:Changing IMEI is illegal by houstonbofh · · Score: 4, Funny

      Look... If you catch someone with a stolen phone just check to see if it has any pirated content. That will get some real punishment!

  2. Re:Why can't US "journalists" do this? by Anonymous Coward · · Score: 4, Interesting

    Sharyl Attkisson (formerly of the Washington bureau for CBS News) explains it here.

    They don't want hard hitting stories. They're cowed, either by government and political forces or corporate forces and pressure groups.

  3. LOL ... by gstoddart · · Score: 4, Insightful

    "Mos Eisley Spaceport.. You will never find a more wretched hive of scum and villainy. We must be cautious."

    I don't think much has changed since Dickens to be honest.

    The specifics change, but human nature doesn't.

    --
    Lost at C:>. Found at C.
  4. No great revelation by RogueyWon · · Score: 5, Interesting

    Don't get me wrong, it's a good and valuable piece of journalism. But I doubt the findings will be a surprise to anybody who's lived in the more central areas of London (or any other major UK city), outside of a few sheltered enclaves.

    I lived for a few years living around the New Cross/Bermondsey area (south of the river, but similar in demographic to the areas in TFA) and there were always a few electronics shops whose existence seemed fundamentally implausible if their business was founded on anything other than handling stolen goods. I avoided them like the plague, but they were generally pretty resilient businesses - and if one closed down, another would spring up a few streets away. I'm not saying that any business which looks a bit grungy is dishonest. I've made some good purchases at backstreet computer stores which get good prices on the back of low overheads and connections with legitimate suppliers (though such places are rare these days since the online boom). But there's a certain type of business which is offering games consoles or other commodity goods at the kind of prices that just make you go "hmm".

    Hell, even going back well before that, I can remember independent video games stores "Ooop North" (from the tail end of the period before the big chains drove most of them to the wall, around the early PS1/N64 era) who were well known among my teenaged peers for staying in business on the basis of a combination of modchipping and fencing stolen goods. In fact, I remember one very close to my school being raided by police and shut down (presumably after crossing some nebulous line into their visible spectrum). Provided a fascinating distraction during the middle of an otherwise dull day at school.

    As the whole modchipping thing implies, these have never been businesses run by people without a degree of tech-savvy. It's no surprise that they've moved onto circumventing mobile phone protections. And I bet you'd find similar businesses in, at the very least, Manchester, Birmingham, Liverpool, Newcastle and Glasgow.

    There have even been suggestions - though I offer no comment as to their veracity - that a well-known red-logoed chain of second hand electronics stores with a presence in almost every town in the UK might sometimes be less than choosy about checking the provenance of the goods it accepts.

  5. Re:Why can't US "journalists" do this? by Anonymous Coward · · Score: 4, Interesting

    Michael Isikoff just bailed on NBC News for the same reason.

    "I had a good ride at NBC, and I’m proud of a lot of what I was able to do there. But it was increasingly clear they were moving in directions in which there were going to be fewer opportunities for my work."

    Isikoff is an investigative reporter.

  6. Re:Why can't US "journalists" do this? by NatasRevol · · Score: 3, Insightful

    Unfortunately, that's always the end result of having ads pay for journalism. At some point, there's always a conflict. And money will always will.

    --
    There are two types of people in the world: Those who crave closure
  7. not just the uk by Anonymous Coward · · Score: 4, Interesting

    My sister's friend recently had her phone stolen in LA. She tracked her phone to a phone shop in the worst part of town. When she confronted the store owner about it he had the nerve to tell her "we don't rat out our suppliers."

  8. Re:Phone numbers by Amnenth · · Score: 3, Informative

    The IMEI isn't a routable phone number. It's an identifier (that is supposed to be) unique to each handset, somewhat like a serial number.