The arrests were made by police in Pescara, in the Abruzzo region, Modena Today reported.
The group, which reportedly includes several employees from a local chamber of commerce, stole more than 180 people’s identities and company details in order to set up false smartphone and tablet contracts.
Couriers complicit in the scam then delivered the phones to gang members, before the devices were sold on.
Police became aware of the scam when people in Abruzzo and Modena began receiving invoices and bills for handsets such as Blackberry, iPhone and Samsung Galaxy phone that they did not own.
More than 120 smartphones and tablets have been recovered, Modena Today said.