‘Buyer beware’ when buying a mobile phone online this Christmas

Mobile phones often top holiday season wish lists for Australians, and with living costs higher than they were 12 months ago many of us will be shopping around to find a bargain. However, the high price tag attached to modern phones coupled with consumer demand for the latest tech makes them attractive goods for scammers.

The Australian Mobile Telecommunications Association (AMTA) wants Australians to be better informed so they can protect themselves from these scams, particularly in the run up to Christmas when these scammers are often most active.

How online mobile scams work

Scammers start by purchasing a legitimate device on a monthly plan, often using fraudulent credentials. They then sell the device on an online marketplace or private forum, advertising the fact that the device is unused and still in its box.

The purchaser may initially be delighted with their purchase, however once the scammer stops making monthly payments the telco will block the phone, leaving the new owner with a blocked device.

AMTA provides a free service to enable buyers to check if a phone is currently blocked because it is lost, stolen, or was fraudulently obtained*. However, people should remain vigilant when purchasing secondhand phones as devices can still be subsequently blocked once the scammer has completed the sale.

3G switchover will increase non-compliant devices

Following the closure of Australia’s 3G networks, AMTA expects this threat to be exacerbated. There are now a number of relatively new models that do not conform to Australian standards and have been disconnected from Australian mobile networks. 

These devices may have been purchased through online marketplaces or secondhand resellers who weren’t aware of the 3G switchover, leaving the buyer with a device that no longer works. People who are left holding these devices may try to offload them via online marketplaces or private sales.

If in doubt, you can use AMTA’s free online tool to check if the device is still supported now that 3G has closed.  

How to stay safe when buying online

AMTA wants to ensure Australians stay safe when buying phones this holiday season. Consumers should keep the following advice in mind:

• Be wary of private sellers advertising on online marketplaces: The device could be fraudulently obtained, lost or stolen, or it may be blocked from accessing a mobile network a few months in the future. 

• Avoid buying devices overseas or from international sellers: Phones made for international markets will look and feel the same but may no longer connect to an Australian mobile network. These devices are sometimes called ‘grey-market’ because they are not sold through legitimate retailers.
• Buy from a reputable Australian dealer: Well-known Australian retailers will be compliant with all requirements and consumers will be protected under Australian law if the device doesn’t work as intended. 
• If the deal is too good to be true, it probably is: And, if you are buying a device that no longer functions since the 3G switchover, you could be buying someone else’s problem. 

CEO of AMTA, Louise Hyland said: “Scammers know they can take advantage of the fact that mobile devices play a valuable role in people’s lives. The best way for people to protect themselves and not be left with a blocked device is to educate themselves on how scams work.”

“While it’s wise to shop around, Australians need to be particularly wary when buying a phone from private sellers on online marketplaces. The 3G switchover also means that there will be an increased number of devices which are no long compatible with Australia’s networks. We’re urging people to stay vigilant rather than be left empty handed.”

*Checking if a device has been blocked

Mobile phones all have a unique 15-digit serial number, the International Mobile Equipment Identity (IMEI).

Customers can have their phones blocked (using the IMEI number) if they are lost or stolen by reporting this to their mobile service provider and requesting the phone’s IMEI to be blocked.

Once service providers have blocked a phone’s IMEI for a customer, the information will be shared with all the mobile carriers to be blocked on all Australia mobile networks and will show up as blocked on AMTA’s website.

However, this tool only provides the current status of the phone and does not protect the buyer if the device is subsequently blocked.

About AMTA

The Australian Mobile Telecommunications Association (AMTA) serves as the leading industry body representing Australia’s mobile telecommunications sector. Our mission is to promote an environmentally and socially responsible, safe, and sustainable mobile telecommunications industry, which delivers high-quality, affordable mobile services to Australian customers.

Recycling old devices

AMTA encourages individuals with old devices to properly dispose of them through MobileMuster, the official recycling scheme of the Australian mobile industry, promoting responsible product stewardship and sustainability.

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