Apple hit by a fraud shock! The company is once again in the headlines due to a massive fraud scheme that resulted in a loss of 12 million dollars. Fraudsters exploited a loophole in the defective product replacement system to swap their counterfeit devices for new ones.

Apple’s fraud shock

Apple, known for its advanced premium service almost worldwide, is in shock due to this fraud. Taking advantage of this, fraudsters brought counterfeit iPhone products manufactured in China to Apple Stores, claiming they were defective or damaged. They then received one of the replacement devices that Apple had ready. While the counterfeit devices were sent to Apple’s warehouse, the fraudsters left with new and original devices.

Sources indicate that this fraud scheme continued from December 2014 to March 2024, occurring approximately 16,000 times. Over this decade, Apple incurred a loss of about 12.3 million dollars. Furthermore, this fraud was not limited to iPhones but also included Macs and iPads. Fake models were used through real individuals residing in the US, utilizing their AppleCare warranties. The scheme’s logic involved using stolen device identities that appeared to be under AppleCare warranty, thus allowing the counterfeit products to be replaced with new ones.

To cover their tracks, the fraudsters visited multiple Apple Stores in California at regular intervals. However, it did not take long for authorities to realize that these individuals were using fake addresses and names. Five people will be tried, and if found guilty, they could face years of imprisonment for each of the 22 charges brought against them. These charges include mail fraud, aggravated identity theft, and trafficking in counterfeit goods.

What do you think about these fraudsters? Please share your thoughts in the comments section below.