Methods and products for facilitating a method of reducing mobile-phone fraud are provided. One method includes receiving a request to activate a mobile device, determining that it is identified as lost or stolen, communicating to the mobile device activation data that enables the mobile device to communicate via a wireless-telecommunications network despite the fact that the mobile device was determined to be identified as lost or stolen, and communicating to the mobile device functionality-impairment instructions that deliberately disable a set of functional aspects of the mobile device, thereby transforming it from a first state to a second state that is functionally impaired compared to the first state.