Five people from China living in Los Angeles have been charged with a scam that tricked Apple of more than $12 million. The scam involved getting fake iPhones from people in China and then going to Apple Stores in California to swap them for real iPhones.
The fake iPhones looked just like real ones, but they didn't work. The scammers used stolen information from real iPhones to make the fakes seem like they were under warranty.
This tricked the people working at the Apple Stores into replacing the fake iPhones with real ones.
Fake iPhone scam started in December 2014 and went on till March 2024
The scam went on from December 2014 until March 2024. The group went to Apple Stores and did this fake swap about 16,000 times. They went to many different stores, sometimes even 10 stores in one day, to avoid getting caught.
To hide their identities, the scammers used fake addresses and names. They also rented PO boxes to receive mail related to the scam. All of this made it harder for anyone to find out what they were doing.
The five defendants, Yang Song, Junwei Jiang, Zhengxuan Hu, Yushan Lin, and Shuyi Xing, face multiple charges, including conspiracy to commit wire fraud, mail fraud, aggravated identity theft, and trafficking of counterfeit goods. If convicted, they could face substantial prison sentences.
Apple has been trying to stop scams like this for a long time. They want to make sure that their customers get real Apple products and good service. However, sometimes scammers find ways to trick Apple and their customers.