AT&T Resumes Web Sales of iPhones in NYC Network issues may still be reason for blocking transactions By Nick McMaster, Newser Staff Posted Dec 28, 2009 5:40 PM CST 2 comments Comments In this June 19, 2009 file photo, a shop worker holds the new Apple iPhone 3GS in Barcelona, Spain. (AP Photo/Manu Fernandez, file) (Newser) – AT&T has lifted its ban on selling New York City residents iPhones online, but the reason for the shutdown remains unclear. Customer service reps at first said New York was not "ready for the iPhone," then offered nebulous explanations about "increased fraudulent activity" in the area. But a statement on AT&T's corporate website simply asserts the firm's right to "periodically modify our promotions and distribution channels." "We periodically modify our promotions and distribution channels," an AT&T rep told CNET. In addition, recent data on online fraud show that while New York is the No. 2 state, California is No. 1, but Californians retained the ability to buy iPhones online after New Yorkers were cut off, reports the Consumerist blog, which originally broke the story.