A former T-Mobile store owner was found guilty of illegally accessing T-Mobile's internal computer system to unlock handsets in a $25 million fraud scheme.
A former T-Mobile store owner was found guilty of breaking into the wireless provider's internal system allowing the rogue businessman to unlock and unblock smartphones. The illegal activities took place from 2014 to 2019 when 44-year-old Argishti Khudaverdyan unlocked phones from T-Mobile and other carriers' networks allowing those buying the handsets to use them with other network providers.
Prosecutors said during the trial that the scheme generated $25 million in illegally attained revenue as removing blocks on these phones allowed them to be sold on the black market. Khudaverdyan unlocked handsets that had been locked to T-Mobile,, and Sprint's networks. He and a partner co-owned Top Tier Solutions Inc., a T-Mobile store in Eagle Rock Plaza, Los Angeles.
Khudaverdyan also elicited help from overseas call centers to receive employee credentials. Armed with this information, the bad actor then called the T-Mobile IT Help Desk to reset the employees' company passwords. This gave him access to the T-Mobile systems that he used to unlock phones. More than 50 T-Mobile employees had their credentials stolen and hundreds of thousands of handsets were unlocked during the years that this scheme was active.
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