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Couldn't you just say "My iPhone was stolen"? How can they enforce this?

They probably make you file a police report with the serial number listed as stolen.

Anyone who has that connected to their plan might actually get caught, simply because the serial number is on a blacklist and cannot be changed.

You'd obviously need proof it was stolen (police report).
 
I'm pretty sure your serial/IMEI number will be blacklisted with AT&T and anyone that tries to activate it will fail. They will also report it to the police.
 
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