Bulk purchase of prepaid phones used in possible scams
Cell phone service providers explain the purchase of prepaid cell phones in bulk from retailers like Walmart is a common scam for dishonest employees and customers.
Cell phone stores tell ABC 17 News cell phone service provider employees will often buy the inexpensive prepaid phones in bulk to create fake qualified customers for promotional discounts and earn some extra cash.
Many of these cell phone stores will offer new customers a free and nicer phone when they trade in their old phones.
Owners said the scam is meant to boost the employee’s number of sales and increase their earnings. They said the dishonest employees are more aggressive with the scam during the holiday season.
Customers will also take advantage of the deal by buying the inexpensive phone only to trade it in for one much nicer.
Sam Schnieders, a Wireless Group owner, which encompasses seven local stores in Mid-Missouri said in a statement: “We have two internal store policies to help eliminate fraudulent activity… 1. No phone leaves the store without being activated and 2. An individual is required to be present to activate a phone.”
The Missouri Attorney General’s office said they were not aware of this type of scam in the state.
ABC 17 News reached out to Walmart Corporate again for its policy on the number of prepaid phones that can be sold at a time to customers and if the company is reviewing its policy after several reports of bulk purchases in Mid-Missouri. As of Thursday afternoon, there has been no response.
