posted 12/23/09 06:10 PM | updated 12/24/09 06:40 PM

T-Mobile Provides Safe Haven for Stolen Phones & Their Users

Have you ever wondered what happens to stolen cell phones after they have been reported stolen or lost to the authorities? Makes sense to think that once a cell phone has been reported lost or stolen and a insurance claim filed, the mobile phone companies would or could essentially render the handset useless should anyone attempt to use it or profit from someone's loss. After all, every cell phone has a unique number called the IMEI or International Mobile Equipment Identity. So logically, mobile phone companies can easily trace the phone and see if it's currently being used along with who is actually using it. Well, guess what? They can!

But why won't T-Mobile take the appropriate actions?

In the past, I've hesitated in buying a cell phone on eBay or Craigslist or off the street "used" or "new" because I was concerned that the cell phone could be stolen and worse, I could be accused of buying stolen goods or support the crime of fencing stolen property. However, after some research on-line, it's amazing how easy it is to circumvent this concern. From what I read and from speaking to TMobile customer service, just play stupid and do not ask if the cell phone is stolen. It that simple. Even if you know the cell phone is stolen and use it with your SIM card, T-Mobile will protect you and your privacy. And even if Asurion (largest cell phone insurance company) has paid a claim on the stolen phone, they will allow you to use the alleged stolen cell phone it as well. Therefore, buying a cell phone online or via Craigslist is virtually risk-free.

I have always wondered why the black market of stolen phone exists. Well, it exists because it can - the black market is allowed to flourish without consequence or recourse. No one will come after you because you got big bro, T-Mo - providing safe harbor for the tempted, the brash and the daring.

Since T-Mobile and other mobile phone operators have access and control a short-list of stolen cell phones equipment, why are they and other companies not held legally responsible under the criminal fencing laws? Pawn shops are governed by strict laws, so why don't these same laws extend to the cell phone carriers like T-Mobile and every mobile phone company across the board?

In my case, my T-Mobile phone was stolen and I immediately reported the theft incident to local police. After providing a serial/IMEI number and a list of other items taken, a case number was immediately issued. I then reported the stolen phone to T-Mobile before proceeding to make an online replacement claim with Asurion Insurance - a mega insurance company that insures handsets for many of the mobile phone companies.

During the claims process, which is laced with warning notices that Asurion will prosecute for filing false claims and takes insurance fraud seriously, Asurion denied and instantly canceled my insurance claim. After several phone calls between Asurion and T-Mobile, I was told that the stolen phone was currently being used and because it was being used by another T-Mobile customer phone number appears on our call list. It sounded - they said - like someone we know or knows us has our stolen phone. Asurion had initially denied our claim while acknowledging that the stolen phone is currently being used and they are not willing to take any further action. With a snap of a finger, they could either shut-off the stolen phone, go after the stolen unit and the alleged thief. Asurion said this was an issue I had to discuss with T-Mobile and only T-Mobile could assist me in finding out who has my stolen cell phone.

In calling T-Mobile, they confirmed that the stolen cell phone was indeed being used by another T-Mobile customer but according to the T-Mobile customer service representative I spoke to, they would not take any action. It was T-Mobile's company policy to respect the account holders privacy and told me I had to contact the local police and speak to officer assigned to the theft case. I did. The investigating officer contacted T-Mobile's Law Enforcement Division but he was told he had to get a subpoena from the district attorney to legally force T-Mobile to comply. After a subpoena is issued, it would take T-Mobile around three weeks or more to send over the account information of the individual currently using the stolen phone. We believe the same individual using the stolen phone was also likely to be responsible for the theft of the other goods.

How can T-Mobile corporate policy to impede and stonewall a criminal investigation? Or is this a case for planned incompetence by the mobile phone carrier?

Of course, T-Mobile must know that District Attorney's will not bother in most cases with subpoena's for crimes less than a felony or $1,500 and I would guess most mobile phone companies know this.

So here we stand, T-Mobile is openly admitting that they allow the use of stolen phones on their networks. Asurion is openly admitting that they would not pursue thieves or persons who are using stolen cell phones. Both companies admit that I could buy a stolen cell phone and easily use it without any consequence and they would insure the device as well and take the monthly $7.00 premiums without hesitation.

Since I have the IMEI number, I thought I would call the store where the MyTouch was purchased. I spoke to the manager - Cynthia, but she said T-Mobile recently removed the option to search or cross reference using an IMEI number. Cynthia did call the regional Asurion representative who went out of her way to investigate the police report and over-rode the claim denial. I am currently processing the insurance claim and paying the outrageous deductible of $130. I have spent too much time on this and sorely disgusted at a company that I have been loyal corporate customer since 2004.

In the meantime, while T-Mobile drags its feet on providing the name of their customer who is using the stolen phone, that person continues to use a $400 phone without interruption and T-Mobile continues to collect premium fees for using the Android/Google platform services.

It seems it's all about the self-serving fee driven motivation at T-Mobile & Asurion that trumps over loyal customers who are trying to do the right thing.

In my opinion and in my case, T-Mobile and Asurion's corporate citizenship is in question. T-Mobile should seriously examine their role in providing a safe and protected haven to undeserving individuals at the expense of honest, hardworking and law abiding folks.

We deserve much better from T-Mobile and other mobile operators that share the same practice.

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