Apple Loses Over $12 Million in Fake iPhone Return Scam With 16,000 Counterfeit Devices Swapped Over a Decade

wccftech.com:

The iPhone and other Apple products are quite lucrative compared to other devices as they hold their value pretty well over time. The iPhone, specifically, has been a victim of various scams in the past, and it appears that we have another case that has rested under the veil for about a decade. In a surprising turn of events, authorities have charged five people in a fraudulent scam that involves returning fake iPhone models to Apple Stores and getting replacements in return.

A scam stretching almost a decade cost Apple $12.3 million that involved replacing fake Apple products with real ones

These people would take fake iPhones and other Apple products to the Apple Store, claiming they were faulty or had an issue and asking for a replacement device. Folks 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. According to sources familiar with the matter, the replacement process was repeated 16,000 times across many years.

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The fraud has not emerged out of the blue but has been happening since 2014. This means that the people involved in the criminal activity have managed to swap upward of 16,000 devices in the past years. As per the case, the entire ordeal cost Apple over $12.3 million at least, and the devices replaced at Apple Stores included different variants of the iPhone, Apple Watch, iPad, and other devices.

The indictment indicates that the people charged were coordinating with groups in China from where they received fake or counterfeit devices. The entire process is more complicated than it seems, as the fake iPhone models used stolen identification numbers. This allowed the return of the fake iPhones to be passed on as the real deal, with Apple employees unable to distinguish between the products.

With the devices featuring real