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In practice, “iCloud unlock” as it’s often called, is a scheme that involves a complex supply chain of different scams and cybercriminals.
But naturally, repair companies know that a phone is worth more unlocked than it is locked, and so some of them have waded into the hacking underground to become customers of illegal iCloud unlocking companies. The large number of legitimately obtained, iCloud-locked iPhones helps supply the independent phone repair industry with replacement parts that cannot be obtained directly from Apple.
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Making matters more complicated is the fact that not all iCloud-locked phones are stolen devices-some of them are phones that are returned to telecom companies as part of phone upgrade and insurance programs.
Thieves, coders, and hackers participate in an underground industry designed to remove a user’s iCloud account from a phone so that they can then be resold. To do this, they phish the phone’s original owners, or scam employees at Apple Stores, which have the ability to override iCloud locks. The iCloud security feature has likely cut down on the number of iPhones that have been stolen, but enterprising criminals have found ways to remove iCloud in order to resell devices. This security feature explains why some muggers have been demanding passwords from their victims. Without the owner's password, the original owner's account can't be unlinked from the phone and the device can't be factory reset. A stolen iPhone which is still attached to the original owner's iCloud account is worthless for personal use or reselling purposes (unless you strip it for parts), because at any point the original owner can remotely lock the phone and find its location with Find My iPhone. An iPhone can only be associated to one iCloud account, meaning that, in order to sell it to someone else (or in order for a stolen phone to be used by someone new) that account needs to be removed from the phone altogether.
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The report shows the Activation Lock Bypass Code for the relevant devices.In 2013, Apple introduced a security feature designed to make iPhones less valuable targets to would-be thieves. Click Core Services > Reports > Built-in Reports > Mobile > Apple Device Details.To access the Apple Device Details report: If the device has been deleted from the Admin Portal, you can still get the code by using the Apple Device Details report. The code is shown for you to manually enter into the device. Click the Action dropdown and select Show Activation Lock Bypass Code.If you are already on the Activation Lock screen, you may need to click Back and then Next to move pass the screen. The code is sent to the device so you can move pass the Activation Lock screen on the device. Click the Action dropdown and select Clear Activation Lock.Click Endpoints, then select the relevant device.These two actions are available for enrolled and unenrolled devices. You can send the activation lock bypass code directly to the device or enter it manually. Important: The activation lock bypass code is only available for devices in “supervised” mode, which requires the device to be enrolled using a supervised enrollment method (for example, DEP). Apple has provided an activation lock bypass code to resolve this issue and CyberArk Identity makes that code available on the Admin Portal. Without the password, the device is unusable. See Corporate Owned and Personal Owned devices. When the device is corporate-owned and the employee wipes the device (because she is leaving the company for example) you may not have access to the account password.
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If an iOS device is registered with an iTune account and the device is wiped, then you must enter the iTunes account password to re-activate it.