VANCOUVER – Independent cell phone service and sales retailer Cell Clinic put out a press release today saying it is witnessing first hand “an alarming increase in the number of individuals falling victim to fraudsters” in the used smartphone market.
Many people selling off their used cell phones are then submitting fraudulent insurance claims to telecommunications companies by reporting a cell phone lost/stolen after a sale, the company says. And once that happens, the phone’s unique IMEI number is blacklisted and then useless to the buyer because it will not work on cell networks here.
In other situations, people are being sold stolen cell phones, or devices which were blacklisted by a wireless company due to unpaid bills. Consumers can test if the phone picks up cellular service when they are making a purchas, or they can go online to see first if the phone they are about to buy is blacklisted, “but that's little help when a mobile device is blacklisted after a sale,” says the press release.
“Fraudsters are benefiting financially by targeting individuals that can least afford to buy a new phone, lose $300 to $500 on the purchase of a blacklisted cell phone, or purchase a ‘discounted’ phone when entering into a contract with a telecommunications company that results in high monthly cell phone bills,” continues the release.
Cell Clinic says it is advocating for individuals by shining a spotlight on this issue and providing tips to help safeguard consumers when purchasing used cell phones. It also said it will offer consumers an opportunity to purchase low-cost used smart phones from them, with a six-month warranty.
The retailer also said it wants to see Canadian wireless companies do a better job for consumers buying used phones by implementing a better process for consumers to report when a used phone they purchased has been blacklisted. “Ideally a consumer will obtain the name, address and mobile phone number of the person that sells them a used phone. This information can be given to a telecommunications company, along with the IMEI number of the phone so they have an opportunity to address fraudulent insurance claims, and in time, perhaps help deter further fraudulent claims, which are supporting criminal activity,” says the Cell Clinic release.
