TracFone tries to stop phone traffickers

Prepaid MVNO TracFone Wireless is attempting to stop cell phone traffickers from purchasing low-cost phones and tweaking the software to make them work on any cell network globally. This practice is causing the company to lose millions of dollars. These phones are usually sold for a discount because TracFone subsidizes the handsets anticipating that it will make money from customers when they purchase airtime for the phone.

TracFone has filed 39 lawsuits in an attempt to stop companies and individuals from trafficking in its phones, most of the lawsuits were filed in South Florida. The firm has obtained more than 15 court orders haulting the unlocking and resale of phones and has been awarded $4 million in damages.

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SPOTLIGHT: TracFone Wireless settled a class-action suit

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