College students allegedly scammed Apple out of nearly $1M in iPhone replacements
Two Chinese engineering students in Oregon allegedly scammed Apple out of hundreds of thousands of dollars in iPhone replacements and are now facing criminal charges in federal court, as first reported by The Oregonian. Authorities allege the students pulled off a convoluted scheme in order to wring Apple of the cash by using counterfeit devices and exploiting Apple’s return policy.
Beginning in 2017, the two men allegedly smuggled thousands of counterfeit iPhones into the US from China and then sent them in for Apple to repair or replace, claiming the knockoffs wouldn’t power on. In many cases, Apple did replace the counterfeit goods with real iPhones, which cost the company an estimated $895,800.