There's also a scam where they contact the owner from abroad, offering to return it, claiming they're an innocent trying to activate a used phone they spent their last dollar on, or threatening the original user into unlocking it. They will say that they're hackers, connected to criminals in your home city, using your name and recent photos to say that they're going to expose your text messages. Anything to get an unlock.

They send them to countries where they aren't locked or break it down for parts.

You can send them to Chinese chop-shops and still turn a decent buck.