[thisone]

how were people "legally" breaking contract doing this? It would seem more like an insurance scam.

Unless mobile contracts have since changed, of course.

[DanBC]

It isn't legal. They weren't interested in the insurance, they just wanted to use that phone on a different provider or to get a new phone.

[thisone]

I just don't understand how reporting the phone as stolen would allow them to break the contract without having to pay the fee, or allow them to get a new phone without paying full price ( without going through the insurance).

I know little about IMEI resetting (which is a good thing I guess), but I thought it was a separate thing from phone unlocking?