Criminals Just Lost Their Favorite Phone Loophole—Here’s What Verizon Users Need to Know
The FCC has finally closed a massive security gap that’s been costing Verizon hundreds of millions of dollars—and putting your stolen phone directly into the hands of international crime rings.
Criminal networks have been exploiting a nearly two-decade-old rule that forced Verizon to unlock phones just 60 days after activation. The Federal Communications Commission revised this long-standing requirement after determining it was costing the telecommunications company hundreds of millions of dollars annually due to fraud. The change brings Verizon in line with standard industry practices and shuts down a pipeline that funneled stolen American smartphones to criminals worldwide.
The 60-Day Window That Criminal Networks Exploited
For years, Verizon stood alone among major carriers with an unusual requirement. Verizon is the only major provider that the FCC requires to unlock its mobile phones 60 days after activation, which is earlier than standard industry practice. Other wireless carriers typically unlock postpaid phones only after customers pay them off completely, and prepaid phones after a full year of activation.
This 60-day window became a goldmine for organized crime. Thieves knew exactly which phones to target. They could steal devices, wait two months, and then resell them internationally with zero carrier restrictions. Stolen Verizon phones were resold on the black market, commanding premium prices on the dark web, particularly in countries like Russia, China, and Cuba.
The problem exploded after 2021. When Verizon acquired TracFone, the FCC extended the 60-day unlocking requirement to TracFone’s prepaid devices as a condition of approval. Verizon saw a spike in fraud of approximately 55% after TracFone moved from its earlier policy of a one-year lock to Verizon’s 60-day lock.
How Bad Did the Fraud Problem Get?
The numbers tell a shocking story. Verizon told the FCC that this has culminated in it losing an estimated 784,703 devices to fraud across both prepaid and postpaid offerings in 2023. That’s nearly 800,000 phones in a single year disappearing into criminal networks.
These weren’t just opportunistic thieves grabbing phones from tables at coffee shops. Verizon reported to the FCC that device fraud and trafficking has become a large and growing problem, organized globally through connected criminal networks. The operation stretched across continents, with sophisticated groups coordinating thefts and resales.
FCC Chair Brendan Carr revealed the disturbing scope of these crimes. Sophisticated criminal networks have exploited the FCC’s handset unlocking policies to carry out criminal acts—including drug running and human smuggling. The proceeds from smartphone theft weren’t just enriching thieves—they were funding serious international criminal operations.
What the FCC’s New Rule Changes Mean for You
The FCC has waived the 2007 rule that created this vulnerability. The FCC said the action “closes a loophole that sophisticated criminal networks and everyday lawbreakers alike have exploited to engage in illicit activity”.
Verizon will now align with industry standards established in the CTIA Consumer Code for Wireless Service from 2013. This means your phone will stay locked until you’ve either paid it off completely (for postpaid devices) or kept it active for a year (for prepaid phones).
Will This Affect Legitimate Verizon Customers?
If you’re paying for your phone as planned, you won’t notice much difference. The old 60-day rule was actually an outlier—you were getting earlier unlocking than customers of other major carriers anyway. Now everyone follows the same standard.
The change primarily impacts criminals who were timing their thefts and fraudulent purchases around that 60-day window. For regular customers who finish paying for their phones or use prepaid service for a year, unlocking will still happen automatically.
Why Verizon Pushed for This Change
Verizon actively sought this rule revision last year. The company explained to federal regulators that the losses had become unsustainable. Beyond the financial hit, the fraud created operational nightmares—dealing with theft reports, insurance claims, and helping victims whose personal information was compromised in the schemes.
Verizon said the 60-day unlocking window left too little time to spot fraud. By the time teams detected suspicious activity, criminals had already unlocked the devices and shipped them overseas, beyond Verizon’s reach.
You can read more details about the FCC’s official decision and how it affects carrier policies going forward.
The Dark Web Connection
The international dimension of this fraud operation is particularly concerning. Criminal networks use the proceeds from the theft of millions of smartphones to fund fraud and trafficking operations at a global scale.
Once stolen phones reached the black market, they commanded premium prices because they were fully unlocked. Buyers in countries with limited access to American smartphones would pay extra for Verizon devices specifically because of this early unlock policy. The rule essentially created a brand recognition among criminals.
Transnational handset trafficking schemes became a documented problem for federal and state law enforcement. Investigators repeatedly found links between smartphone theft rings and broader criminal enterprises. The phones themselves were just one product in a larger smuggling operation.
What Happens Next
The rule change took effect January 12, 2026. Verizon has already begun implementing the new locking periods. If you activated a phone after this date, it will follow the updated timeline.
For phones activated before the rule change, Verizon will honor the original 60-day unlocking promise. The FCC made the revision prospective, not retroactive, so existing customers won’t see their unlock dates suddenly extended.
FCC Chair Brendan Carr emphasized that this creates a more uniform approach across the industry. By removing the incentive for bad actors to target one specific carrier, the commission expects to see a reduction in coordinated smartphone theft.
A Warning to Criminals
Law enforcement agencies have been tracking these criminal networks for years. With the loophole now closed, federal investigators expect disruption to the stolen phone pipeline. The premium prices on the dark web were built on predictable access to unlocked Verizon phones—that predictability just vanished.
The FCC’s action sends a clear message: exploiting regulatory requirements to facilitate crime won’t be tolerated. The commission is willing to update rules that inadvertently create criminal opportunities, even if those rules were originally designed with consumer-friendly intentions.
The Bottom Line
This rule change represents a rare moment when tighter restrictions actually benefit consumers. Yes, your phone will stay locked longer—but that’s exactly the point. The old system was bleeding money and fueling international crime.
For Verizon customers, the practical impact is minimal. You’ll get your phone unlocked when you’ve paid for it or used it long enough to verify you’re a legitimate customer, just like everyone else. What you won’t get is your stolen phone showing up in Moscow or Beijing, funding criminal operations that ultimately make everyone less safe.
The FCC’s decision prioritizes security over convenience, closing a loophole that criminals had turned into a highway for stolen devices. After nearly two decades and hundreds of millions of dollars in losses, that highway just got shut down.
Frequently Asked Questions
How long will Verizon now keep my phone locked?
Verizon will now lock postpaid phones until you pay them off completely, and prepaid phones for one year after activation. This matches what other major carriers like AT&T and T-Mobile already do. The old 60-day automatic unlock that only applied to Verizon is gone. If you’re on a payment plan, expect the lock to remain until your device is paid in full.
Will the new Verizon unlocking rules affect phones I already own?
No. Phones activated before January 12, 2026, will still follow the old 60-day unlocking timeline. The FCC made this rule change prospective only, meaning it applies to new activations going forward. If your phone was already counting down to the 60-day mark when the rule changed, Verizon will still unlock it as originally promised.
Can I still unlock my Verizon phone if I want to switch carriers?
Absolutely. Once you’ve met the new requirements—paying off your phone or completing one year of prepaid service—Verizon will unlock your device just like before. The difference is timing, not whether unlocking is available. You’ll still be able to take your paid-off phone to any compatible carrier, you just can’t do it as quickly as you could under the old 60-day rule.
Why was Verizon targeted by criminals more than other carriers?
Criminals specifically targeted Verizon because of the 60-day unlock rule that only applied to this carrier. Thieves knew they could steal a Verizon phone, wait two months, and have a fully unlocked device to resell internationally. Other carriers keep phones locked much longer, making them less attractive to organized theft rings. The FCC’s rule change removes this target from Verizon’s back.
