I bought an iPhone 4 a few months ago, I used it for like 2 weeks, then it got blocked for service out of nowhere. After trying all I could, I called ATT customer service, only to find out my phone was reported stolen and being finger pointed for having it in my hands.
Basically what happened was that they guy who sold it to me, reported it stolen to get a new one through insurance. How do I know? Well the guy in fact had a new one in his hands when I bought this one with the screen cracked.
Anyways, the point it that my phone can only be used outside the US. Now, I bought another one 2 days ago, and called ATT to notify them I was buying this phone used from the original owner. And they told me they cant do anything, that the original owner can still report it stolen or lost at any time.
So, that means every single person using a used iphone can get their phone blocked at any time.
My question is, is there any possible way to buy a used iPhone and have peace of mind that it is legally yours????

How sad... Now I am afraid I have one 2nd hand just 4 days ago. Hopefully this won't happen to me since I have this from a friend...

Well, att customer service representative told me the only person who can report it stolen is the original owner. And there is no way to transfer that right to anybody else, legally.
On the other hand, I chatted with an Apple representative and they told me my carrier can do that if I request so. If I didnt misunderstood, they will contact att and register the phone under your name.
Another option, buying a factory unlocked iPhone. As these are not purchased from a carrier, they have nobody but the police and Apple to claim it has been stolen. So, what I am doing is, Im buying a used factory unlocked iPhone, and I will have the seller call Apple to transfer ownership.

Hi this is my first post, and if an iPhone is reported stolen then the imei number is blocked which means it can not use any other network or be unlock, if the phone was to be unlock then you can be jailed for it as it is an offence to such a thing sorry to here of your bad luck