A Thriving Black Market in Stolen Mobile Phones

Author: 
Essam Al-Ghalib, Arab News Staff
Publication Date: 
Mon, 2004-03-01 03:00

JEDDAH, 1 March 2004 — A thriving black market in used, stolen and illegal mobile phones and fraudulent mobile service takes place on Palestine Street every day. An average of 30 men stand on the stretch of Palestine Street just west of King Fahd Road attracting — at times — over 100 people. All the phones available there come with “no warranty and no receipt,” as one seller told Arab News.

Not all phones sold there, however, are stolen, according to a store-owner who asked to remain anonymous. “Most stolen mobiles find their way here where they are sold to the highest bidder. These people are a gang and they are ruining my business. No one, not even the police, can control them,” he said.

When I attempted to photograph what was going on, I was set upon by an angry crowd of more than a dozen men, demanding my camera and memory chip. Fearing for my safety, I made my way to a policeman directing the very traffic which results from this black market and was surprised to hear the mob calling the officer by his first name.

Apparently those in pursuit of me and my camera are on a first-name basis with the police. To placate the angry crowd and by order of the police officer, I was forced to delete the images. I must admit that better photos were taken the following day.

Salem Saleh, 24, is one of the men who can be found standing at this place everyday, buying and selling mobile phones. When asked why he objected to some free newspaper coverage if his activities were legal, he answered: “If our picture appears in the paper, then the authorities crack down on us and we get arrested.”

When asked if he bought and sold stolen phones, his reply was: “Only God knows.”

Most people who visit this black market are unaware that they might be buying a stolen phone. Rashad Ahmad Rashad had just bought a mobile for SR150 and said: “You can’t find prices like these in the stores.”

When asked if he knew where his phone had come from, he said: “I don’t know, I didn’t really think about it.”

According to police at Al-Salama station, there are gangs in Jeddah who snatch people’s mobiles. “I can take your phone from you and go sell it on Palestine Street for SR900 right now,” said the desk duty sergeant there. “Some people make a lot of money that way,” he added.

Alongside those looking for phones are a small group of men selling SAWA service chips for prices ranging from SR250 up to SR500. All you need for a chip is to pay cash; identification is not required.

“Saudi Telecom requires you to show an iqama when applying for a SAWA card,” said a young Saudi man selling the chips. “For those in the Kingdom illegally, they can buy what they want here,” he explained.

To many, that may seem harmless enough, but when the telephones are being used by those who don’t want their identities known, the problem takes on a different complexion. In many of the recent raids on terrorist hideouts throughout the Kingdom, police have found dozens of unregistered mobile numbers obtained in this manner.

A legitimate SAWA merchant explained: “All it takes is a business license to register dozens of mobile numbers in your name. You obtain the chips from Saudi Telecom and then sell them on the streets for double the price. In six months, you report all your lines lost or stolen, thereby disconnecting them all, and then you request more chips to replace the ones ‘lost or stolen.’ Then you sell those.”

As one man who had just acquired a mobile chip from a street vendor said as he made a call, “No questions asked. It’s the easiest way.”

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