Apple has become a victim of fraud with its mobile devices, which lasted almost a decade. The scheme caused the Cupertino company to incur losses of more than $12.3 million.
Fraudsters brought fake iPhones, iPads, and other Apple products to Apple Store, claiming that they were faulty or had a problem, and asked for a replacement with a new device. Apple Store employees accommodated customers, took the 'non-working' fake iPhones and provided genuine devices as replacements. Subsequently, the brand-new original smartphone or other device was sold on the market at a fairly high price. According to sources familiar with the situation, the replacement process was repeated approximately 16,000 times over many years. The first cases were recorded as far back as 2014.
It is noted that the scammers lured various versions of iPhones, Apple Watches, iPads, and other devices at Apple Store. All these replacements of fake devices with genuine ones cost Apple more than $12.3 million.
The indictment specifies that the accused individuals (5 people) coordinated work with groups in China, from where they obtained fake devices. The whole process is more complex than it seems, as fake iPhone models used stolen identification numbers. This allowed the return of fake iPhones as genuine, since Apple Store employees could not distinguish the products.
Since the devices have real but stolen identification numbers, it is quite possible that the real owners of the devices may be deprived of AppleCare warranty repairs. This is because the Apple system had already processed the identification numbers and processed the device returns.
To avoid tracking, the culprits demanded replacements at different Apple stores in California. In addition, the accused individuals also provided false information at Apple Store, including fake addresses, aliases, and the like. If found guilty, they face many years in prison.
Source: wccftech
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