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Technological advancements have made it possible to use information associated with a mobile's location to form new computing and services. One concern with these emerging location-based services (LBS) is their ability to provide security while remaining reliable and accurate. In this paper, we focus on securing Mobile Location-based Services (MLBS), where certain goods or services are provided by mobile vendors to a clientele based on the proximity of vendors to potential customers. We identify different attacks and misuse faced by MLBS, and show that position verification is a critical step in providing a secure and trustworthy MLBS. To provide position verification, we propose a scheme called Key Distribution-based Position Verification (KEPI), which takes advantage of an auxiliary network of transponders to facilitate trustworthy location-based services. We derive an analytical model to evaluate our approach and our simulation results provide useful insights about how auxiliary networks can help provide trustworthy mobile services.