The gadget called PocketHound works by lighting up if there is a mobile phone transmission - a sign a cheater could be in action.
Once the device is set off, teachers can nab the offender, manufacturers said.
The device has a battery life of about two hours and features an integrated multiband antenna that is hidden under the label, 'BusinessNewsDaily' reported.
The receiver continually scans all cellphone bands and utilises a sophisticated algorithm that constantly samples the radio-frequency (RF) noise floor to distinguish real cellular activity from ambient RF noise.
