WASHINGTON-The FBI and Department of Homeland Security have advised state and local law enforcement officials to be alert for large purchases of prepaid cell phones, an FBI spokesman said.
The advisory follows an investigation of recent incidents in Texas, California and possibly other states in which individuals bought or tried to buy large quantities of prepaid cell phones.
An FBI-DHS bulletin went out yesterday to law enforcement officers across the country, an FBI spokesman said. The spokesman, who declined to release the bulletin, said the FBI probe found no clear terrorist ties to the purchases. However, he said FBI agents continue to run down leads of possible terrorist links in connection with bigger-than-normal purchases of prepaid cell phones.
Prepaid cell phones are commonly used in terrorist circles and organized crime.
CNN first reported on the FBI’s prepaid cell phone bulletin late yesterday afternoon.
Instead, according to the FBI, federal law enforcement saw indications of a different problem in the bulk purchases: the mobile phone black market.
It is unclear exactly how big the black market is for cell phones.
In a 2005 study, the GSM Association found a significant proportion of cell phone sales in emerging markets are taking place through the black market. In 2004, according to the group, an estimated 39 percent of all wireless handsets sold were distributed via the black market. The GSMA said such sales outside of normal distribution channels represent a loss of $2.7 billion in tax revenue in the 50 markets examined. If the trend continues, the association predicted lost tax revenue over the next five years could total $24.5 billion.
