AT&T is reportedly suing three former employees for accepting money from another company to put unlocking software on its devices.
The report names Marc Sapatin, Nguyen Lam and Kyra Evans as the defendants in the case, which was filed last week with Seattle’s US District Court. The complaint states the three alledged conspirators placed illegal unlocking software on AT&T’s phones while working in one of the company’s call centers in Bothell, Wash.
AT&T claims the unlocking malware makes it possible to use multiple carrier systems in place of just AT&T’s, which directly affects the company’s business model. The company also names 50 John Doe defendants in addition to the three named in the suit. Sapatin is accused of trying to recruit “many people across the country” to steal access codes from AT&T and other carriers.
California-based Swift Unlocks allegedly paid Evans at least $20,000 to install the malware while Sapatin made approximately $10,500. Lam is believed to have taken the job at AT&T for the sole purpose of installing the malware, according to the filings. The suit maintains the scheme gave Swift Unlocks access to “hundreds of thousands” of unlock codes.
A statement from an AT&T spokesperson assured customers that their private information was not in danger. “We’re seeking damages and injunctive relief from several people who engaged in a scheme a couple of years ago to illegally unlock wireless telephones used on our network,” the statement said. “It’s important to note that this did not involve any improper access of customer information, or any adverse effect on our customers.”
Swift Unlocks is a website that offers unlocks for devices such as iPhones and Amazon Fire Phones for between $10 and $50. Unlock services make switching SIM cards for international travel easier, allows you to fetch a higher price when reselling your phone and makes it possible to switch carriers to take advantage of promotions, according to the company’s website. The service is also offered for T-Mobile and Verizon devices.
Smartphone unlocking has become a hotly debated issue with the FCC over the past few years. The practice allows carriers such as AT&T to sell devices at discounted rates because they are tied to wireless services provided by the carriers. The carriers install the locking software to make sure that customers keep their services long enough to pay back the phone subsidy.
So far, Swift Unlocks business operations have not been affected. The company has yet to comment on the allegations.