The iPhone scam is no longer as profitable, especially when you get caught like the two Apple employees who attempted to extract a massive amount from the Californian company before being rebuffed.
A Proven Scheme
In the past, several individuals have attempted this scheme. However, it almost always ended up being exposed, with the culprits arrested, tried, and convicted as seen here. The method is relatively straightforward, and it appears that Cupertino has yet to find a preventive solution, as the scenario still occurs several times a year.
The scam involves a repair fraud, where counterfeit iPhones covered with genuine serial numbers and/or IMEI numbers were shipped between Hong Kong and the United States, using UPS. This allowed them to exchange these fakes for real iPhones at Apple stores! (note: there remains some ambiguity regarding the specifics of the exchange – particularly with the customer service that must verify the serial numbers – and the quality of the counterfeits).
The two men managed to sneak 6,000 iPhones past Apple’s oversight from May 2017 to September 2019 – a haul valued at over $2.5 million! Apple’s customer service was completely fooled!
The Verdict!
Chinese nationals Haotian Sun and Pengfei Xue will each serve more than four years in prison, specifically 57 months for the former and 54 months for the latter.
They will also face three years of supervised release and a significant fine ($1,072,000 for the first and $397,800 for the second). It’s worth noting that both men faced a maximum of 20 years in prison for mail fraud and conspiracy…
Hi, my name is Disha and I’m a passionate writer and editor at “Jason Deegan”. With a keen interest in all things tech, I strive to bring you the latest news and updates from the world of high-tech.