Nine held over racket using stolen iPhones

Nine people were arrested on suspicion of conspiracy to defraud in a series of early morning raids yesterday.

City of London Police detectives swooped on homes in Forest Gate and Southall in London, Southend, Walsall, central Birmingham and Middlesbrough.

They seized dozens of mobile phones, hundreds of Sim cards, computers, documentation, stolen bank cards, several fake passports and cash.

The raids followed a month-long investigation into a rapidly growing criminal conspiracy profiting from the theft and illegal use of almost 1,000 iPhones.

Police were called in after mobile phone company 02 saw 1.2m stolen through premium phone lines in July alone.

Sim cards were being shipped abroad and plugged into automatic dialling machines calling lines around the clock at a charge up to 10 a minute. The cards were racking up enormous bills which were settled immediately by O2 but never repaid by their "ghost" owners.

Police believe a gang of West African fraudsters bought the iPhones and contracts from high street stores using false credit cards and false identities.

The handsets were sold to a Birmingham-based middleman who then split the Sim cards and handsets in what criminals dub "box breaking".

The Sim cards were then sold to a London and Essex-based crime gang responsible for the premium phone line swindle.

The handsets were sent to criminal contacts overseas, where they can fetch up to 450 each.

Police arrested several members of the premium phone line gang, all of whom are of Pakistani origin, at homes in Forest Gate, Southall and Southend.

They are suspected of setting up a complex network of shell companies to launder the profits swindle.