Two students tricked Apple for $ 1 million

Two young Chinese, living in Oregon on student visas, fool Apple hundreds of thousands of dollars, turning the intricate scheme. The investigation of the feds (specifically - the special agent Thomas Duffy) can be read here , it's almost a detective story. In short: they took iPhones, fakes and handed them over to Apple "for repair". If the goods could not be repaired, sometimes they were sent back a replacement. Buy a fake (besides, non-working) cost $ 30. An iPhone sent in return cost an average of $ 600.

The Chinese Yan'an Zhou and Quan Jiang bought thousands of counterfeits in China, transported them to the US (where, apparently, was the loyal replacement rules?), And delivered them to Apple for repair at various addresses, stating that their iPhones refused to be included.

As Thomas Duffy explains, agent nat. US security staff Apple Store rarely checked whether these iPhones are fake. They quickly found out that, indeed, the devices did not work, and simply submitted to the office a request for their replacement. Zhou and Jiang insisted that the products are still subject to warranty, and Apple did not even ask for their purchase confirmation.

Jiang filed 3069 claims to repair his iPhone under warranty, and Apple, apologizing that it could not repair the device, sent him (and his friends, at different addresses in the US) 1,493 new iPhones. Further, these smartphones were sent to China to the addresses of relatives and accomplices, and were sold on online platforms or through social networks. The accomplices transferred part of the money from Jiang's mother’s sales, and she deposited them on the account of his son, who he used in the USA.

For a year and a half of the students ’work, Apple lost about $ 895,800. In June and July 2017, the company sent letters to the US address of the letters with orders to prohibit the continuation of unlawful actions, reporting that it knew about the use of counterfeit. But at the same time, its other branches continued to regularly send new iPhones to replace the “damaged” ones.

According to police, both Jiang and Zhou now say they did not know that their smartphones were fakes. Like, they just helped the Chinese to get their repairs under warranty. Both are still free, but Jiang is being watched by GPS. Zhou is accused of illegal export, Jiang is accused of trafficking in counterfeit goods. Guys face up to 10 years in prison and a fine of up to $ 2 million.