FedEx Data Scraping and Telecom Insider Bribes Powered Nationwide iPhone Theft Operation

Federal authorities have broken up an international crime ring that stole thousands of iPhones from porches nationwide [non-paywalled link], arresting 13 people last month after a sophisticated operation that combined high-tech tools with old-fashioned bribery.

The thieves created software to scrape FedEx tracking numbers and paid AT&T store employees to provide customer order details and delivery addresses, according to WSJ, which cites prosecutors. Armed with this information, runners intercepted packages at doorsteps moments after delivery.

Demetrio Reyes Martinez, known online as "CookieNerd," developed code that circumvented FedEx limits on delivery-data requests, while AT&T employee Alejandro Then Castillo used his credentials to track hundreds of shipments and reportedly received up to $2,500 for recruiting other employees. Stolen devices were funneled through Wyckoff Wireless in Brooklyn, a store owned by Joel Suriel, who was already on supervised release from a previous wire-fraud conviction. The merchandise was then shipped overseas for sale and activation.

stolen phones

[kyoko21]

Isn't it pretty easy to track these phones since they all have unique serials and other unique identifiers? If the customer never gets the phone shouldn't then the stock be marked as lost/stolen so that it cannot be used/activated again and essentially become e-waste or at best be parted out?

Re:

[Valgrus Thunderaxe]

You're assuming that everyone gives personal information when buying a phone. I would never do that in a million years.

Re:stolen phones

[ebunga]

FTFA: "The stolen devices were then shipped overseas for sale and activation abroad, according to the complaint."

So... they were shipping them overseas. Can't really block it from the network if it's not on your network...

Re:stolen phones

[Luthair]

Apple would know though

Re: stolen phones

[Big Hairy Gorilla]

Recent article at The Guardian detailed how people were having their iPhone snatched out of their hands on the subway... then thief exits as doors close... phones sent to china for the screen only.

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[DaHat]

That's what I logged in to ask... what's the point of a scheme like this when blocking exists?

A couple of years ago I ordered a iPhone & case from T-Mobile, and one day a signature required box showed up with just the case in site. Upon investigation by T-Mobile & FedEx, it was found the box was light from the original warehouse, so someone must have screwed up and not put the phone in the box... but had scanned it as linked to my account. Fast forward a couple of weeks and I get an email noting tha

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[ChunderDownunder]

Assuming Apple wasn't part of the sting and told to turn a blind eye.

Inter-agency law enforcement in multiple countries may have been tracking these operations for several years biding their time accumulating evidence.

Re:stolen phones

[FrankSchwab]

Yes, if Apple had a financial incentive to block stolen iPhones.

Look, the people buying stolen iPhones were never going to buy a retail iPhone anyway, so they weren't an Apple customer. The fact that they now have an iPhone means that, maybe in the future, they'll be stuck in the ecosystem and start buying legitimate phones.

The people who get phones stolen from another new iPhone - either they, the delivery company, or the seller will do so - so Apple isn't out any money as a result of the theft.

So, if Apple allows stolen phones to get activated, they get to sell two phones, satisfying one customer and potentially gaining another.
If Apple doesn't allow stolen phones to get activated, they only sell one phone, and have one satisfied customer and no potential additional customer.

As a graduate of an American MBA program, which of these two options would you choose?

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[Luthair]

Apple also ships phones to customers directly and would either self-insure or pay fedex in who might raise rates

Even if the carrier is shipping they may reduce the offers on iphones to cover the loss, and that money from the customer's pocket is money that apple can no longer bilk out of them.

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[DarkOx]

I would ask what the cost of caring the stolen phone is; that person is still going to use an apple account, still going to be pulling updates from servers, etc etc. You are entirely right though it might be perfectly sensible from a dollars and cents perspective in terms of custom acquisition costs.

There is a good will cost as well. Customers don't want to have a target painted on them. Ask a Tesla owner right now... If people started to see Apple as not caring about anti-theft or worse nodding and wink

Ok this tracks

[jacks smirking reven]

Looking up Wyckoff Wireless in Brooklyn [google.com] and if you've ever been to NYC you know these types of phone/camera/electronics stores are all littered about the city, usually with bad prices and the whole things feels a bit shady and I guess if I've ever wondered "How the hell do all these places stay open?" I guess this is one answer. I feel like half the other reasons are of of questionable legality.

Re:Ok this tracks

[Valgrus Thunderaxe]

Many of these NY 'camera' shops are fronts for other illegal businesses.