The unfortunate truth is that the resale market for stolen smartphones is enormous, and if you're buying a second-hand Apple device from a disreputable source, there's a fair chance that you could be buying stolen goods. Fortunately, Apple has made it easier for anyone to see if a particular device is stolen just by checking to see whether Activation Lock is turned on.
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Activation Lock is a feature of the Find My iPhone iCloud service. The basic idea is that, with Activation Lock turned on, no one is able to erase or reset an Apple device without first keying in the registered owner's Apple ID and password. Whenever an iOS user trades in or sells his device to Apple or another retailer, they'll require him to deactivate the Activation Lock. If someone is trying to score a cheap iPhone from a Craigslist posting, though, it's hard for them to see if Activation Lock is on just by looking at the phone.
That's where Apple's new service comes in. On this dedicated page on the iCloud website, anyone can insert a given iOS device's serial number or IMEI number to see whether Activation Lock is turned on for that device. If it is, then the seller really is the true owner. If not, either the owner forgot to turn off the lock or the device really isn't his to sell.
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Of course, the tool has other uses other than doing a quick background check on an unverified iPhone for sale. iOS users can easily run their own serial number through this system to make sure their devices are properly protected.