Apple has been hit by a significant scam, resulting in a $12 million loss. While such stories are not new, this time scammers exploited a loophole in Apple’s product replacement system, leading to substantial financial damage.
Apple Hit by a Major Scam
Apple is back in the headlines due to a major scam that has left the company reeling with a $12 million loss. The scammers took advantage of Apple’s premium service, which is available globally and aims to provide the best service to its users. By exploiting a flaw in the system, the scammers managed to swap counterfeit iPhones for genuine ones.
The fraudsters, reportedly from China, brought fake iPhones to Apple Stores, claiming they were defective. Using Apple’s exchange program, they replaced these counterfeit devices with genuine ones. The fake devices were sent to Apple’s warehouse, while the fraudsters walked away with brand-new, authentic products.
Sources indicate that this scam occurred approximately 16,000 times between December 2014 and March 2024. Over this decade, Apple suffered a loss of about $12.3 million. The scam was not limited to iPhones; it also involved Mac and iPad devices. The counterfeit models were exchanged using real individuals based in the US, leveraging AppleCare warranties. The scammers used stolen device identities to make the counterfeit products appear legitimate under the AppleCare guarantee, facilitating their exchange for new devices.
To cover their tracks, the fraudsters visited various Apple Stores in California at different intervals. However, it did not take long for Apple to detect the use of fake addresses and names. Five individuals are now facing trial, and if found guilty, they could receive lengthy prison sentences for each of the 22 alleged offenses, which include mail fraud, aggravated identity theft, and trafficking in counterfeit goods.
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