Apple Lost Over Rs 43.8 Crore In The Latest iPhone Scam

On Wednesday, the Department of Justice charged 14 people for allegedly participating in a scheme involving swapping counterfeit iPads and iPhones to take real devices at Apple Stores in Canada and the US. The Cupertino-based company estimates the loss of operation cost from this scheme is Rs 43.8 crore ($6.1 million) or higher, the DOJ reported.

According to a release from US Attorney Reboert Brewer, manufacturing counterfeit products and using them to defraud companies ultimately undermines the marketplace as well as causes damages to people who are stolen of their identities as a side effect of such activities.

In this scheme, these people imported over 10,000 counterfeit iPads and iPhones from China, as stated in the indictment. They intentionally damaged the fake devices, brought them to Apple Stores to change for genuine ones. For the swap to work, they falsely used serial and IMEI numbers, which are unique and used for identifying devices, of actual iPads and iPhone of other people that Apple warranty covers. Then, they sent the real iPads and iPhones to China as well as other countries and sold them at premium prices, according to the Department of Justice.

The 14 defendants are facing charges of money laundering, identity theft, conspiracy, and fraud, the DOJ revealed. As of Wednesday, law enforcement agents arrested 11 of the defendants, including three people that allegedly led the group.

Apple did not respond immediately to a comment request.

Apple devices have long been known as premium products with eye-watering high prices. Therefore, they have also become the target of many scams and malicious schemes. Not only counterfeit products are made, but criminals have also attempted to rob Apple Store to steal devices,