Greg's Corner

The Costly Trap of ‘Free’ Phone Upgrades

By Greg Collier

What may sound like a generous offer of a free phone upgrade can sometimes be the opening move in a costly scam. A recent case in Atlanta highlights how convincing these schemes can be and how easily consumers can be drawn in when scammers present themselves as representatives of well-known companies.

The scam begins with a call claiming to come from a customer loyalty department. The target is offered a free upgrade, often involving a phone, smartwatch, or tablet. The caller already has access to some personal details, which creates a false sense of legitimacy. To proceed, the victim is asked to provide a code sent to their device. Handing over this code is what gives the scammer access to the account.

Once inside, the scammer can order devices, open additional lines, and manipulate shipping instructions to ensure the equipment ends up in their possession. A common tactic is to tell the victim that the wrong item was sent, then request the return of the device using a label connected to the fraudster rather than the company. This cycle may repeat until suspicions grow.

By the time many consumers discover what has happened, their accounts have already been altered without their consent. Some find themselves responsible for unauthorized lines and unexpected charges. Addressing these issues can be difficult, as companies often interpret the shared code as proof that the customer authorized the changes.

Telecommunications fraud has become a lucrative sector for scammers because phones are high-value items that are easy to resell. Exploiting upgrade programs allows criminals to divert expensive devices into secondary markets within days. Industry reports estimate that mobile carriers lose billions annually to this type of fraud, losses that can indirectly affect all customers.

The scam is effective because it exploits a security system designed to protect customers. Verification codes are meant to safeguard accounts, but when scammers convince individuals to read those codes aloud, the entire layer of protection collapses. This allows fraudsters to bypass technical barriers without ever needing to break into company servers or crack encryption systems.

In this Atlanta case, the company ultimately removed fraudulent lines after being contacted by local media. A statement acknowledged the sophistication of the scam and encouraged consumers to review fraud prevention resources and report suspicious activity immediately.

Even if a call appears to come from a familiar company, it is best to avoid providing verification codes or personal information to anyone who initiates the contact. Legitimate representatives will not ask customers to share those codes. Letting calls go to voicemail and reaching out directly through official customer service numbers remains one of the most reliable ways to confirm whether an offer is real.