T-Mobile manager says the carrier would take the risk of selling iPhones to homeless-looking men
Before the T-Life app was developed, reps smelling out a fraud would be able to prevent a transaction from going through. They would tell a potential scammer that they didn’t have the phones in stock, or that T-Mobile was requiring a 90% down payment to finance the purchase of a new phone.
Postpaid phone net adds are the most important metric that analysts use to compare how a wireless provider is doing compared to its rivals. It is a category that T-Mobile usually leads the industry in each quarter. But as the carrier pointed out, 90% of its lines are used by customers with multi-line accounts. Thus, the company believes the real focus should be on accounts, not lines.
Still, the men described as being homeless opened up new accounts which still count toward new account activations. And the manager’s comment is no less valid: T-Mobile is willing to risk getting stiffed for the phones because it can improve its metrics. Even if new lines aren’t as important, net new accounts will be.
T-Mobile reps take it on the chin when a fraudulent buyer defaults on a purchase
Another T-Mobile rep revealed that a customer once entered his store and “checked all the boxes for fraud.” He wanted to open a T-Mobile for Business account and wanted to know his equipment credit limit. He wanted to purchase as many iPhone models as possible, not asking about color or storage options. The rep, who uses the name VTECbaw on Reddit, saw through the “obvious fraud” and was able to halt the transaction as the leader.
But it turned out that the shady customer was working with another T-Mobile rep and the guy came back to the same store on a day when VTECbaw was out and put the transaction through. When the Redditor approached his District Manager (DM) to point out that the purchase was a fraud, the DM said that the transaction was okay and was not fraud. As it turned out, VTECbaw was chewed out for even suggesting that fraud was involved.
I have a sneaking suspicion that TMO doesn’t care about the deactivations (well, customers in general, but these specifically). It’s just churn to them. Plus, it’s (briefly) more subscribers to report to the precious, precious shareholders. It’s the same thing they do with the free lines. It costs them very little to nothing, and it pads the numbers.
-Reddit subscriber boywithflippers
So the first payment date came and went without the customer making a payment. T-Mobile and the store took a hit on the iPhone units that the customer “purchased” and the rep lost credit for all of the activations.
Now you might wonder what would be the point of stealing those iPhones? Inside the U.S., T-Mobile would be able to blacklist the phone. However, carrier blacklists only work in the U.S. If Apple were to get involved, a blacklist would be global. But if an iPhone obtained fraudulently from T-Mobile were to be shipped overseas, the device could be harvested for spare parts without any recourse.
In case you were wondering how the “homeless” can pass the credit check, these men probably looked homeless but were old and didn’t care about their appearance or their credit. As one Redditor suggested, the “homeless mule” escorting them into the T-Mobile store picks up these guys with the promise to buy them a 5th of whiskey if they allow their credit to be run. As far as they know, they are helping out a young man get phones and service for his family and in return they get a bottle to drink as payment. The credit mule then sends the phones off to the “drop,” which is listed in a group chat on Facebook, and receive their payment.
As crazy as all of this all sounds there is at least one part that rings true. T-Mobile doesn’t mind the risk of turning over new iPhone units that they might not get paid for just so it can improve its activation numbers. While the company has to write off some inventory, it is the rep that really takes it on the chin.
