Fake iPhone Return Operations Scammed Over $12 Million

Five people scammed Apple for over $12 million and were charged with fraud after performing fake iPhone return operations for a decade.

The operation was allegedly done 16,000 times and was coordinated with Chinese groups for the stock of counterfeit devices.

Chinese Groups Scammed Apple Over Fake iPhone Returns

The team managed to get past Apple's system by returning fake lookalike iPhone models to Apple Stores. They would claim that the unit was faulty and would ask for a replacement device. The new unit will then be sold by the team.

The case notes revealed that Apple lost around $12.3 million on the operation. Aside from iPhones, the suspects also returned thousands of iPads and other Apple devices during its operation from December 2014 to March 2024.

According to the report, Apple Stores managed to accept the counterfeit models due to the stolen identification numbers from legitimate Apple products in the U.S. They often utilized real numbers from genuine customers under the AppleCare warranty cover.

Apple Scam Pushes on Trial

The conspirators often claim repairs at different Apple Stores in California. Reports suggest that they would visit up to 10 stores in a single day, allowing them to get as many replacement units as possible.

The suspects also managed to cover their tracks by using fake addresses and fake names. In addition, they would often rent PO boxes and use other strategies to prevent getting tracked.

As of writing, the case will push through a trial. The defendants will face years of prison if found guilty. They will receive 22 counts of wire fraud, mail fraud, trafficking of counterfeit goods, and aggravated identity theft.