said by FFH:if they are able to report your phone stolen they would be able to cancel your account entirely. seems like a non issue to me. said by 8744675:
On the down side, what is to stop the cell providers from listing someone's old phone once they upgrade to a new one, even if the old one hasn't been stolen? By turning the old phone into a brick, they could force people to buy new phones to get service.
That might be an issue, but I doubt the Big 4 would do that. It would murder their reputation.
Another issue might be people reporting your phone stolen when it isn't, just to cause you some grief. Say an ex-boyfriend or girlfriend looking to make your life miserable.