FCC revises Verizon device unlocking rules after fraud issues

WASHINGTON, Jan 12 (Reuters) - The Federal Communications Commission on Monday revised a long-standing rule that required Verizon Communications VZ.N to unlock its handsets 60 days after activation, which it said is costing the telecommunications company hundreds of millions of dollars annually due to fraud.

The FCC said the action "closes a loophole that sophisticated criminal networks and everyday lawbreakers alike have exploited to engage in illicit activity," and added Verizon’s unlocked handsets are often stolen and resold for premium prices on the dark web, particularly in countries like Russia, China, and Cuba.

The FCC's current rules "cost Verizon hundreds of millions of dollars each year in deadweight loss," the commission said.

(Reporting by David Shepardson in Washington; Editing by Chris Reese)

((Email David.Shepardson@thomsonreuters.com 202-579-6093))