A system and method of securely allocating mobile devices is disclosed. A plurality of mobile devices are stored in an inoperative state under the control of a host computer. A user enters an identification code, which is received by the host computer, and the host computer selectively places a mobile device in an operative state based on the identification code. If the selected mobile device is not returned within a first predetermined interval, then the selected mobile device is placed back in the inoperative state. If the selected mobile device is not returned within a second predetermined interval, then all data within the selected mobile device's memory is purged. Additionally, the plurality of mobile devices can be stored in a secure area. Access to the secure area is granted based on the identification code.