iPhone fraud is costing Apple more than $6 million – CNET

iPhone-Scam Apple costs more than $6 million – CNET


The defendants faced several charges, including fraud, conspiracy, identity theft and money laundering. 

Óscar Gutiérrez/CNET

The Ministry of justice on Wednesday, 14 people charged for their alleged participation in a project that swapping with fake iPhones and iPads for legit devices at the Apple Stores in the U.S. and Canada. Apple estimates that the operation costs a minimum of $6.1 million, according to a press release from the Ministry of justice. 

“The making of counterfeiting — and their use to defraud U.S. companies — seeks to fundamentally undermine the market and harms the innocent people whose identities were stolen for the promotion of these activities,” said US attorney Robert Brewer in a press release. 

over 10,000 fake iPhones and iPads were imported from China as part of the scheme, according to the indictment. The fake devices were intentionally damaged and then replaced at Apple Stores for new Original equipment. To pull out of the swap, the used fake devices in the wrong, IMEI and serial numbers-unique numbers for the identification of devices — from current iPhones and iPads in the possession of other people and is covered by an Apple warranty. The real iPhones and iPads were then sent back to China and other countries to be sold at a premium, the justice Department said.

The defendants face charges of fraud, conspiracy, identity theft and money laundering, according to the DOJ. Law enforcement authorities arrested 11 of the defendants as of Wednesday, including three brothers who allegedly led the criminal group. 

Apple did not immediately respond to a request for comment. 

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Released on Thu, 14 Nov 2019 15:08:00 +0000

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