Sun. Jun 23rd, 2024

Counterfeit iPhone scams cost Apple millions of dollars

Natasha Kumar By Natasha Kumar Jun2,2024

Counterfeit iPhone fraud has cost Apple millions of dollars

Apple is always proactive in combating new types of fraudulent schemes. However, scams rarely reach such large proportions as in the last case. Currently, in the American state of California, five people are accused of fraud: as reported in a press release dated May 31 by the Los Angeles Daily News, losses totaling $12.3 million were caused.

The scam has always followed the same pattern: people bring cheap, counterfeit copies of genuine Apple devices, such as iPhones or iPads, to Apple Stores. There they claimed that their devices were not working and demanded a replacement. In Apple stores, employees changed counterfeit products to new original ones. A total of 16,000 frauds have been reported by criminals.

The fraudsters used genuine serial numbers for their extremely cheap fakes numbers of actual Apple products sold. The criminals worked with accomplices from China who manufactured cheap products with fake serial numbers. The originals were then sold on the Chinese market.

To replace the tracks, the fraudsters visited up to 10 Apple Stores a day in Southern California between December 2024 and March 2024 year. They disguised themselves by using, among other things, fake addresses, rented mailboxes and other tricks to confuse the tracks.

The serial numbers were obtained from devices that other people actually bought from Apple stores in the US and were still under warranty. Therefore, these customers could no longer pursue their warranty claims.

The five defendants have now been charged in 22 crimes. The process should start soon. If found guilty, they will face multiple charges, including fraud, identity theft and counterfeiting.

Natasha Kumar

By Natasha Kumar

Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my 1-800-268-7116

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