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'Easily Monetizable'

FCC Gives Consumers Advice on Preventing Smartphone Theft

Consumers need to keep in mind the high value of their smartphones and protect them like they're a wad of cash, said John Breyault, vice president-public policy at the National Consumers League, during an FCC tutorial Tuesday. The agency, which has made device theft a priority under Chairman Tom Wheeler (see 1406200065), provided practical advice to consumers during the session at FCC headquarters in Washington.

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Breyault asked the audience how many were carrying $1,000 in cash in their pockets and then how many had an iPhone. “You actually are carrying around $1, 000 in cash on you right now,” he said, saying that’s the value of a stolen iPhone in many parts of the world. They are “easily monetizable,” he said. In 2013, more than 3 million smartphones were stolen in the U.S., compared with 1.6 million the previous year. About 44 percent are stolen because they are left on the table at a bar or restaurant, he said.

A recent survey showed that 34 percent of smartphone users have taken no steps to secure their phones if stolen, Breyault said. Some states are mandating kill switches in phones and industry groups like CTIA are creating stolen phone databases and numerous apps to help consumers wipe a phone remotely or locate a phone that has been lost, he said. “But let’s be realistic.” Even a "brick" phone that has been deactivated “will have value because of the components in it,” he said.

Cellphones contain a “vast amount” of data and personal information, said Delara Derakhshani, policy counsel at Consumers Union. Derakhshani said all consumers should protect their devices using a “strong password,” rather than just a four-digit passcode. “It makes it a lot tougher for the bad guys to crack your phone and get to that sensitive information,” she said. People should also use software that allows a phone to be located on a map if stolen. They should also backup information in the cloud so it can be easily recovered, she said. Consumers should also record the phones unique ID number, which can be found by dialing *#06#, she said.

Meanwhile, the FCC said Tuesday the commission is joining the Global Privacy Enforcement Network (GPEN), an international group of privacy regulators. The FCC will join the FTC as representing the U.S. in the group, the FCC said in a news release from the Enforcement Bureau. "We live in an interconnected world where threats to consumer privacy and data security often require the cooperation of numerous law enforcement agencies around the world,” said Travis LeBlanc, chief of the FCC Enforcement Bureau.