"House of stolen iPhones": How stolen cell phones are sold in China

In Shenzhen, near Hong Kong, there is a place that specializes in the professional marketing of stolen iPhones. There is little users can do.

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iPhone theft (symbolic image)

Theft of an iPhone (symbolic image).

(Image: Shutterstock / Donenko Oleksii)

3 min. read

Over the years, Apple has developed increasingly difficult-to-crack methods to protect stolen iPhones from being used by thieves. For example, a cell phone from the manufacturer cannot be reset without a PIN or Apple account, users can track and lock it remotely – and the so-called Stolen Device Mode also combats newer theft strategies. However, the criminals have also become more professional: The devices are still being resold. According to a lengthy report in the Financial Times, an international theft business has developed in which a specific address in Shenzhen, the Chinese electronics metropolis located directly next to Hong Kong, plays a central role. In the “House of Stolen iPhones”, devices are marketed and – often attempts are made to unlock the Apple phones via blackmail –.

According to the report, several iPhones stolen in western cities were traced to Shenzhen – often via a stopover in Hong Kong. Although unlocked models are the most valuable, the components can still be sold. The sellers say they have no idea why they keep US and European models in stock. Cunning: It is not uncommon for attempts to be made to blackmail the legitimate owners of locked iPhones. They use the number or e-mail address that the devices display in disappearance mode if this has been set.

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One of the criminals wrote to a person who had been robbed that they were only “recycling sellers” and had not stolen the device. However, if the lock is not removed, the motherboard could be “hacked” to access credit cards or family data. “We therefore recommend that you deactivate the lock as soon as possible so that we can reset the device and delete all data.”

According to the London police, cell phone theft is a business that generates at least 50 million pounds a year in the British metropolis. The authorities have seized 1000 stolen devices and arrested 230 people as part of a week of action. Meanwhile, the “House of Stolen iPhones” takes care of devices that cannot be unlocked. Specialized companies purchase them from the buyers and then try to crack them after all.

According to the FT, the companies do not have a guilty conscience. The operators of the entire “mall”, which is called “Tongtiandi Communication Market”, also did not want to comment on the activities in their building. It was often stated that the sellers were “private individuals”. “What they sell is their business, you should ask them,” was one of the responses. The fact that it is very easy to import products in Hong Kong – there is free trade – makes the city an ideal starting point in the illegal supply chain. Users can do nothing – except delete and lock their devices remotely.

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This article was originally published in German. It was translated with technical assistance and editorially reviewed before publication.