A Phone Scam that Cost Apple Thousands of Dollars

Apple Phone Scam

Two Chinese students studying engineering at Oregon State University and Linn Benton Community College have cost apple thousands of dollars for running a Phone Scam. For now the students are not in custody and await trial.

Apple Lost Thousands in This Clever Phone Scam

Outside the classroom, the two students would import fake iPhone from China. They would then send the phones back to apple either by mail or in person stating that the phone is faulty and wouldn’t power on.

Apple would then send them a new phone which they shipped back to China where their contacts sold the iPhone making a hefty profit. After taking their part of the share, the contact would then sent the remaining money to a family member of one of the students who later transferred it to their accounts.

How Much Did Apple Lose?

According to media reports, the scam that started in 2017 cost Apple $895,800 in new iPhones. Experts are stunned at how easily Apple allowed itself to get conned. The thing that made this phone scam so successful is Apple’s inability to identify whether the so-called iPhones were real or fake.

Without powering on the phones, Apple employees couldn’t confirm whether the phone was genuine and so according to Apple warranty policy would send it back to the company to be replaced.

In total 1,493 fake iPhones were swapped for real one. The Chinese student intended to exchange a total of 3,069 counterfeit iPhones but Apple caught on to them. Apple sent them a warning letter asking them to stop the phone scam; sadly this was ignored.

The Charges Placed on the Students

So far the students are not in police custody but are awaiting trial. One student has been charged with trafficking counter fit good and fraud. While the other one is accused of exporting products illegally. Both deny knowing that the phones were fake.  

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