Five mobile phones are being reported stolen every day in Brighton and Hove and criminals are increasingly using the proceeds to fuel the drugs trade.
Easy pickings by opportunist thieves at beaches, pubs and cafes is driving the illegal trade, according to Sussex Police.
The force has warned there will be a sharp increase in mobile phone thefts this summer unless people keep their property safe and are aware of tricksters.
One reason police believe mobile phone theft in Brighton is so rife is the ready availability of shops willing to buy them with no questions asked - a trade it is trying to stamp out with a series of raids.
A Sussex Police spokesman said: "It is often a spur-of-the-moment thing and we know there are places within the city where thieves can go and sell them for ten pounds or whatever amount of money.
"They are able to offload them fairly quickly and we also know this is often being used to fund a drug habit."
Officers are still counting and logging stock recovered during a raid in March on the King of GSM store, in Preston Street, Brighton.
Thousands of pounds' worth of items, including hundreds of mobile phones were confiscated along with DVD players and Playstations, and officers are still trying to establish where much of it came from.
Handbags left on deckchairs and phones or iPods left on the beach while people swim in the sea are among the opportunities presented to thieves according to the police.
A force spokesman said: "We are trying to raise awareness among as many people as we can but of course we get a lot of people visiting the city during the summer who we cannot always get that message across to."
Among the tricks thieves have used to steal mobile phones in Brighton include a gang of Eastern Europeans who approach cafe tables with a begging sign asking for money.
They then use the sign to obscure a mobile phone sat on the table and steal it while the owner cannot see.
Halifax, the bank, has revealed Brighton and Hove is 19th on a list of 102 cities and towns for levels of mobile phone theft.
The bank says it is costing consumers millions of pounds by pushing up the cost of insurance policies and the cost of replacements.
Vicky Emmott, from Halifax Insurance, said: "Mobile phones are constantly getting lighter and more compact which makes them easier for opportunistic thieves to swipe.
"Phone users should keep their mobiles out of sight whenever possible."
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