Can I Sell a Lost or Stolen Phone To a Buyback Company?

By Daniel Blinder

So, you've got an old phone lying around, and you're considering selling it to a buyback company.

But then, a thought crosses your mind: what if the phone was reported lost or stolen? Can you still sell it? What are the implications?

As experts in all things mobile buyback here at ClicknCell, our guide is here to clear up any confusion and help you understand more about whether you can sell a phone that's been reported lost or stolen to a phone buyback company.

Let's get a brief answer before we get into the real details.

No, you cannot legally sell a phone that's been reported lost or stolen to a buyback company. Such companies check databases for lost or stolen devices, and accepting them is illegal and could result in the phone being confiscated.

Ok so now let's get in deep and start by finding out more about lost and stolen phones in the US.

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Understanding the Landscape: Lost or Stolen Phones in the US

In the U.S., mobile phone theft is a significant concern. With high-end smartphones costing a small fortune, it's no surprise that they are a prime target for thieves.

According to data from the Federal Communications Commission (FCC), millions of mobile phones are reported stolen each year in the U.S.

According to CNBC’s latest reports, 113 mobiles go missing every minute which adds up to a whopping 30 million a year.

When a phone is reported lost or stolen, it is usually added to a blacklist. This blacklist is managed by the CTIA's Stolen Phone Checker and shared across networks to prevent the device from being used.

A blacklisted phone will not be able to connect to any U.S. mobile network, rendering it practically useless.

Sell your phone

What Happens When a Phone is Blacklisted?

When a phone is blacklisted in the USA, its IMEI (International Mobile Equipment Identity) number is flagged as lost or stolen in a nationwide database maintained by the GSMA (GSM Association).

If someone attempts to sell a blacklisted phone to a buyback company, the company will likely refuse to purchase it or report it to the authorities due to its compromised status.

Read more in our other useful guide, Do Phone Buyback Companies Accept Phones with Bad IMEI Numbers?

Can You Sell a Phone That’s Been Reported Lost or Stolen?

Selling a phone that's been reported lost or stolen in the USA isn't just a bad idea; it's against the law and goes against basic ethical standards.

Can You Sell a Phone That’s Been Reported Lost or Stolen?

But it's not just the holidays – think about back-to-school time or the months leading up to big holidays.

Legally, it's a big no-no. It falls under theft laws and handling stolen property, which can lead to serious consequences like fines or even jail time, depending on the severity of the situation and where you are.

Ethically, it's pretty clear-cut too. Selling a stolen phone hurts not just the original owner who lost it but also perpetuates a cycle of crime. It's like turning a blind eye to someone else's misfortune and profiting from it, which isn't cool.

Practically, even if you try to sell a stolen phone, reputable buyback companies are wise to it. They have systems in place to check if a phone has been reported missing or stolen. If it has, they won't touch it. So, even if you try, chances are you won't get far with it.

Bottom line: selling a lost or stolen phone in the USA is a bad idea all around – legally, ethically, and practically. It's just not worth the risk or the guilt.

What Should You Do If You Have a Lost or Stolen Phone?

If you find yourself in possession of a phone that you suspect might be lost or stolen, here are some steps you should take:

Verify the Status

Before doing anything, check the phone’s status. You can use online tools to check the IMEI number.

Websites like CheckMEND offer comprehensive checks to see if a phone has been reported lost, or stolen, or is subject to any insurance claims.

Report to Authorities

If you confirm that the phone is lost or stolen, report it to the police. They may have information on the original owner and could assist in returning the phone to them.

This step is crucial in ensuring you’re not inadvertently handling stolen property.

Return to the Owner

If possible, try to return the phone to its rightful owner.

This might involve contacting the network provider or using any available information on the phone to identify the owner.

Many people include contact information on their lock screens for such situations.

Selling Your Phone: A Step-by-Step Guide

Assuming you have a legitimate phone to sell, here’s a guide to help you through the process:

Step 1: Prepare Your Phone

Back up your data:
Ensure all your data is backed up. This could be via iCloud for iPhones or Google Drive for Android phones.
Factory Reset:
Once your data is safe, perform a factory reset to erase all personal information. This protects your privacy and prepares the phone for its new owner.
Remove SIM and SD Cards:
Take out your SIM card and any external storage to avoid losing important information.

Step 2: Check the Market Value

Research the current market value of your phone model. Websites like eBay, Amazon, and the best phone buyback companies in the US and beyond will give you an idea of how much your phone is worth.

Step 3: Choose a Reputable Buyback Company

Look for a well-reviewed and reputable buyback company.

These companies offer competitive prices and have good track records.

Step 5: Send Your Phone

If you’re happy with the quote, proceed with the sale. The company will typically provide a prepaid shipping label, making it easy for you to send your phone. Make sure you package the phone securely to avoid any damage during transit.

Step 6: Get Paid

Once the company receives and verifies the condition of your phone, they will process the payment. This can be via bank transfer, PayPal, or even store credit, depending on the company’s options.