How Stolen iPhones Travel From Western Streets to Chinese Markets

[MacRumors]

The Feiyang Times is an unassuming tower in Shenzhen's Huaqiangbei district, but it has earned the nickname "the stolen iPhone building" in Apple community forums. According to a Financial Times investigation (paywalled), the building has become a major hub in a global network trafficking stolen iPhones.

When London tech entrepreneur Sam Amrani had his iPhone 15 Pro snatched by two men on electric bicycles, he tracked its journey via Find My to a repair shop in London, then to Hong Kong, before it finally settled in Huaqiangbei. "It was very quick, very organised and kind of targeted," Amrani told the FT.

Law enforcement in London estimates phone theft represents a £50 million ($63.5 million) annual criminal industry, with similar rises reported in Paris and New York.

The fourth floor of the Feiyang building specializes in selling second-hand iPhones from Western countries. Many are legitimate trade-ins, but traders admit that even remotely locked devices have their "market price."

Hong Kong serves as the critical intermediary in this supply chain, according to the report. Specifically, an industrial building at 1 Hung To Road in Kwun Tong houses hundreds of wholesalers openly advertising phones labeled "iCloud locked" through various messaging platforms.

"The [passcode-locked] ones were probably stolen or snatched in the U.S. They are sold to Hong Kong and then on to other countries including the Middle East," explained one Shenzhen-based seller visiting Hong Kong.

What makes Huaqiangbei valuable to thieves is its specialized market that can find buyers for every iPhone component – from screens and circuit boards to chips. Even when devices can't be unlocked, they're profitable when stripped for parts.

Many theft victims receive messages from individuals in Shenzhen (when put into Lost Mode, a contact number for anybody finding the iPhone can be added) either cajoling or threatening them to remove their devices from Find My iPhone, which would substantially increase the device's resale value.

According to the report, the criminal network thrives on Hong Kong's status as a free trade port with no import taxes, allowing traders to move stolen devices into mainland China while avoiding electronics tariffs.

The Hong Kong police told FT that it "will take appropriate actions where necessary according to actual circumstances and in accordance with the law."

Article Link: How Stolen iPhones Travel From Western Streets to Chinese Markets

 

[darngooddesign]

Many theft victims receive messages from individuals in Shenzhen (when put into Lost Mode, a contact number for anybody finding the iPhone can be added) either cajoling or threatening them to remove their devices from Find My iPhone, which would substantially increase the device's resale value.

I had some chucklehead do that even though my phone wasn't stolen and any old phone I had sold was already wiped and fresh. Scammers and hackers.

 

[kiranmk2]

I'm surprised there aren't laws to make it illegal to trade these locked phones for parts. I can't think of any legal reason why someone with legal ownership of a phone would not unlock it and sell it for a higher price.

Obviously, there would be an issue getting such a law implemented in China but there are so many "iCloud locked - for parts" phones on eBay in the West.

 

[bollman]

Well, it is not totally uncommon for companies to have their iPhone locked and the employee have left. If you cannot find the invoice and prove to Apple it is the property of the company, it is impossible to unlock and the phone goes to scrap. Seen it happen quite a few times.

 

[OS X Dude]

I thought Activation Lock now covered individual components, so that they cannot be used in other iPhones if they were swapped in?

 

[Ifti]

Mine was snatched and kept in a London dwelling for a couple of days - the police couldn't just go and knock on the door apparently, even though my Find My showed it was there. To be fair, the police here in the London were pretty useless throughout. Gave me a crime reference number, told me its happening a lot, and that was it.

2 weeks or so later I tracked it back to Shenzhen.
Luckily I had Applecare+ so the handset was replaced (Apple and the insurer were great BTW). I still have the old handset locked in my Find My - not sure whether to remove it or not as its probably been stripped by now.....

 

[SilmarilFinder]

Almost everyone I know who lives in central London has had their phone snatched. (And honestly, I still do not understand why anyone chooses to live there. Unless they enjoy donating their belongings to passing criminals.)

Everyone knows it is only a matter of time, so they set up Find My in advance as if it is part of the moving-in checklist. When the inevitable happens, they mark the device as stolen and begin the usual routine.

They go to the police, hand over the IMEI, share the live location, sometimes down to the exact flat the phone is sitting in. Some even bring CCTV footage where you can clearly see the thief’s face, haircut and probably their preferred meal deal. They provide proof of purchase like they are filing for a warranty claim. The police reply with the usual line: “We do not have the resources. Hopefully, you have phone insurance.” Very reassuring.

It is baffling. This is meant to be a developed country, proud of its technology, with CCTV on every lamp post, yet the police might as well be using binoculars and guesswork. People have given up.

This is what happens when you cut funding to basic services like the police and the NHS for decades. It is beyond embarrassing. When there are no consequences, the problem does not just continue. It flourishes.

 

[Fuzzball84]

Must be crazy to track and see your phone making that journey across the world.

My iPhone is constantly wandering off but I took action and confiscated its passport. Not going to Hong Kong any time soon. 😆

But on a serious note our phones are very personal items and even if it’s all backed up it mustn’t be a nice experience at all to have it taken and then have to get a replacement.

 

[contacos]

The only time it almost happened to me was when I was studying in Barcelona in 2012. I remember everyone made fun of me for being too "germanized" for tying my phone case to by belt and one night we were out and suddenly I feel something pulling on my belt and I turn around and a lady was holding onto my phone but couldn't get it loose. Naturally I slapped her hand and shouted Pendeja at her. I literally didn't feel her taking it out of my pants pocket, just like in the movies.

Been careful travelling ever since

 

[Baslea]

Mine was snatched and kept in a London dwelling for a couple of days - the police couldn't just go and knock on the door apparently, even though my Find My showed it was there. To be fair, the police here in the London were pretty useless throughout. Gave me a crime reference number, told me its happening a lot, and that was it.

Something similar happened to the sister of a colleague in Germany as well. Phone got stolen in a mall, Police didn't want to help, although they actually knew in which apartment it was (due to precise tracking or however it's called). Anyway, her brother and a few friends "visited" and when he didn't want to give out the phone ("I legitimately bought it") they beat the **** out of him while getting the phone back.

 

[Fuzzball84]

The only time it almost happened to me was when I was studying in Barcelona in 2012. I remember everyone made fun of me for being too "germanized" for tying my phone case to by belt and one night we were out and suddenly I feel something pulling on my belt and I turn around and a lady was holding onto my phone but couldn't get it loose. Naturally I slapped her hand and shouted Pendeja at her. I literally didn't feel her taking it out of my pants pocket, just like in the movies.

Been careful travelling ever since

I’ve seen so many YouTube video and TV shows that demonstrate just how skilled some pickpockets are. It’s mind blowing what some can take without the victim having any sense of it.

 

[cicalinarrot]

My mom's phone got stolen in northern Italy a few years ago.
Find My told me that they knew where it was a few months ago. Casablanca.
And that's it, you can do as much as I could with this information.

 

[AdamHarbour]

Made in china ! Stolen in the USA ! Repatriated to china ….. how green is that ? The iphone is not carbon neutral

 

[Powerbooky]

They go to the police, hand over the IMEI, share the live location, sometimes down to the exact flat the phone is sitting in. Some even bring CCTV footage where you can clearly see the thief’s face, haircut and probably their preferred meal deal. They provide proof of purchase like they are filing for a warranty claim. The police reply with the usual line: “We do not have the resources. Hopefully, you have phone insurance.” Very reassuring.

Apparently finding and arresting criminals even with irrefutable evidence is not as important as hunting down people on social media not doing "newspeak".

 

[tuckerjj]

Remember this article the next time someone tries to claim the only reason Apple implement parts pairing is profit 🙄

I’m not saying it’s not that, but it’s not only that.

• Preventing the reuse of stolen parts
• Preventing the use of inferior/ dangerous parts
• Restricting repairs to certified repair shops who adhere to standards
• Control
• Profit

There are multiple reasons, good and bad, (and I’m sure I’ve missed more). It’s as not black and white as some would have you think.

 

[ELand-SX70]

Mine was snatched and kept in a London dwelling for a couple of days - the police couldn't just go and knock on the door apparently, even though my Find My showed it was there. To be fair, the police here in the London were pretty useless throughout. Gave me a crime reference number, told me its happening a lot, and that was it.

2 weeks or so later I tracked it back to Shenzhen.
Luckily I had Applecare+ so the handset was replaced (Apple and the insurer were great BTW). I still have the old handset locked in my Find My - not sure whether to remove it or not as its probably been stripped by now.....

Do not remove it as many components will remain locked. You don’t have the phone anymore but no one will be able to use any of its parts

 

[HazeAndHahmahneez]

The only time it almost happened to me was when I was studying in Barcelona in 2012. I remember everyone made fun of me for being too "germanized" for tying my phone case to by belt and one night we were out and suddenly I feel something pulling on my belt and I turn around and a lady was holding onto my phone but couldn't get it loose. Naturally I slapped her hand and shouted Pendeja at her. I literally didn't feel her taking it out of my pants pocket, just like in the movies.

Been careful travelling ever since

of course I can look it up but what does pendeja mean?? ive heard it before....its like cabrone? I think cabrone is like slang but can be a swear word and for what, I have no clue...

was she old young caucasoid, moorish, other? im just trying to set the scene here...obv never judge a book by cover...

also...would you call what you had that was "too germanized" a man-purse??

I remember traveling to Antigua back in like 2006ish....and of course tons of germans there...and this one cat had the man purse haha. I think it was just starting to catch on at the time..

Something similar happened to the sister of a colleague in Germany as well. Phone got stolen in a mall, Police didn't want to help, although they actually knew in which apartment it was (due to precise tracking or however it's called). Anyway, her brother and a few friends "visited" and when he didn't want to give out the phone ("I legitimately bought it") they beat the **** out of him while getting the phone back.

this completely reminds me of telephone game...the story is so embellished now it sounds like a scene out of John wick or what's that series Jason satchem is in?....anyways, it was probably she dropped it and a little old lady returned it to her brother who was with some friends at the time and got it back to her safe and sound lol

not picking on you, by any means, just human nature..

I’ve seen so many YouTube video and TV shows that demonstrate just how skilled some pickpockets are. It’s mind blowing what some can take without the victim having any sense of it.

at first I was like no way taking a 16 pro max is easier since (esp. with a case) its got some heft....but maybe heft MAKES it easier as its a bigger grippier target SMH

mind blown..

 

[darngooddesign]

Made in china ! Stolen in the USA ! Repatriated to china ….. how green is that ? The iphone is not carbon neutral

Recycling parts is green

 

[TechRunner]

Well, this explains why official iPhone sales continue to trend downward in China.

 

[HazeAndHahmahneez]

Do not remove it as many components will remain locked. You don’t have the phone anymore but no one will be able to use any of its parts

how far back does this go? 12 pro days?....

 

[flottenheimer]

A lot of stolen iPhones in Europe somehow end up in Romania.
I assume they have a similar setup.

 

[contacos]

of course I can look it up but what does pendeja mean?? ive heard it before....its like cabrone? I think cabrone is like slang but can be a swear word and for what, I have no clue...

was she old young caucasoid, moorish, other? im just trying to set the scene here...obv never judge a book by cover...

also...would you call what you had that was "too germanized" a man-purse??

I remember traveling to Antigua back in like 2006ish....and of course tons of germans there...and this one cat had the man purse haha. I think it was just starting to catch on at the time..

Pendeja means like „stupid i**t“ in Mexican Spanish and yes, the woman was probably a „gypsie“

Not a man purse haha just a phone case that you can also keep your cards inside and an attachable hook. „Germanized“ in the sense of „being too prepared and too cautious“ which at the end was a good thing!

 

[JPack]

I thought Activation Lock now covered individual components, so that they cannot be used in other iPhones if they were swapped in?

You just do an IC swap on the display for example to bypass that. There are tools to read original screen and camera data, store it, and reprogram the new part.

Most parts remain reusable.

Everyone is aware of cheap storage upgrades for iPhone and Mac via NAND upgrades. These snatches are a good source of NANDs.

 

[rgeneral]

Only way it have parts linked to the security chip. Security chip have activation lock. So parts will become useless.

Of course this will raise cost and right to repair folks won’t be happy.

It is plus and minus as usual

 

[JPack]

Only way it have parts linked to the security chip. Security chip have activation lock. So parts will become useless.

Of course this will raise cost and right to repair folks won’t be happy.

It is plus and minus as usual

If there is a way for the manufacturer to program the part, whether it’s the display, camera, or battery, then there is a way to bypass it. Simply swap the IC from the broken display/camera/battery to the used component.

This makes it more challenging of course, but Apple has trained millions of people in China on how to assemble and disassemble iPhones over the past decade. This includes everything from advanced IC design to use of a heatgun for reballing.