Apple products, especially the iPhone are pretty lucrative compared to other devices as they hold their value pretty well over time. However, the flagship smartphone has fallen prey to several scams in the past, and it appears that another case has been pushed under the rug for almost a decade.
Well, authorities have charged five people in a fraudulent scam involving returning fake iPhone models to Apple Stores and getting replacements. These scammers would take fake iPhones and other Apple products to the Apple Store, claiming they had issues and asking for a replacement device.
Representatives at the Apple Store would keep the fake iPhones and replace them with original devices. The original product would then be sold in the market for a high price. As per sources familiar with the matter, the replacement process was repeated over 16,000 times across several years.
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Apple Fake iPhone Scam Going On Since 2014
This fraud has not emerged out of the blue, but it has been happening since 2014. This means that the people involved in the fraud have managed to swap over 16,000 devices in the past few years. As per the case, the entire ordeal cost Apple over $12.3 million, and the devices replaced at Apple Stores included different iterations of the iPhones, Apple Watch, iPad, and other devices.
It shows that the people charged were coordinating with groups in China from where they received fake devices. The entire process is more complicated than it might appear, as the counterfeit iPhones are to be passed on as the real deal, with Apple employees unable to differentiate between the products.
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How Were These Frauds Pulled Off?
With the devices featuring real but stolen identification numbers, it is likely that the original owners of the devices might never be able to avail of AppleCare warranty repairs. This is because Apple’s system would have already processed the identification numbers as faulty and returned devices.
To tackle the issue, the scammers availed repairs across several Apple Stores in California. Moreover, the accused also provided wrong information about Apple Stores, including fake addresses and more. The case will continue to move forward, with the defendants facing multiple years in custody if found guilty of the crime.
Apple’s developer’s conference will run from June 10 to June 14, and the first day will focus on showcasing its forthcoming software efforts. The remaining days would enable developers to get used to the new releases.
Apple also confirmed that the first keynote on June 10 will kick off at 10 AM Pacific Time. At the event, the company is expected to launch the much-anticipated iOS 18 update with generative AI features for the iPhone. Following the event, the company would also announce the Apple Design Awards and the Platform State of the Union on the same day. The company will be live-streaming the event on multiple platforms.