Damage is estimated at $12.4 million
Apple's warranty policy is such that it sometimes allows scammers to exchange counterfeit devices for real ones. Reportedly, five Chinese citizens took advantage of this opportunity for a dozen years, resulting in huge losses for Apple.
Caught criminals were operating a large-scale trans-Pacific Apple device counterfeiting scheme. They have been operating in California since 2015, exchanging counterfeit iPhones, iPads and other Apple products for new ones. In 10 years, they managed to exchange about 16,000 devices! Total damage is estimated at $12.4 million.
The indictment alleges that the defendants collaborated with groups in China from which they obtained counterfeit or counterfeit devices. The whole process is more complicated than it seems, as the fake iPhone models used stolen ID numbers. This made it possible to pass off counterfeit devices as real ones, while Apple employees could not distinguish the products on site in stores.
To avoid prosecution, the attackers went to different Apple Stores in California. In addition, the defendants also provided false information, including fake addresses, aliases and more.