Mobile Phone recycling companies have vowed to fight crime by entering a code of practice which requires them to try and identify any stolen mobile which has been sent to them.

Thieves are accumulating £4 million worth of revenue from 100,000 stolen handsets which are sold on. But the UK government has unveiled a new scheme which targets crooks who exploit recycling companies by selling mobile phones which do not belong to them.

When a mobile phone is reported as stolen it is blocked on UK networks, but many thieves sell them recycling firms who usually export abroad where they work perfectly fine.

However under the new code, recycling companies will check all phones against a national database which has recorded all reported stolen handsets, and if they are in possession of one will refuse to buy it and inform the police of the would-be seller’s details.

Under the code, companies must check phones against a national database and report any stolen ones to police. More than 15 mobile recycling firms have pledged their involvement to the scheme.

The average price of an unwanted mobile phone is £40 although some mobile phones sell for up to £200, like a brand new iPhone for instance. Getting cash for mobiles is an effective way to save money and the environment.

Marc Walters, director of Mobile Phone Xchange said: “Mobile phone theft is a serious issue and we will do all we can to aid efforts in stopping such crime.”

Crime prevention minister James Brokenshire said: "By joining forces with the police, the mobile phone industry is closing a multimillion-pound loophole that has been exploited by criminals, and the industry should be congratulated.

"Alongside the impressive work on blocking stolen phones, this code will make mobile phone theft an even less profitable crime."