Chinese student scammed Apple $1 million with fake iPhones

Chinese student  Quan Jiang was sentenced to three years and one month of imprisonment by a US district judge after he was found guilty of scamming Apple for approximately $1 million.

He is also most likely to be deported to China after serving his prison time.

Quan Jiang scammed Apple alongwith his friend Yangyang Zhou. They together used to import thousand of fake iPhones from China. They would send these fake phones to Apple claiming that phones were defective as they would not turn on. The company would then replace these counterfeit phones with the real ones which Jiang and Zhou would send back to their country to be a sold at a profit out of which they would receive a small portion.

A total of 1,493 units had been issued to the duo on which Apple suffered a loss of $600 on each of the devices.

Apple rejected replacement of 1576 fake iPhones on the grounds of product tampering. In total Jiang had about $40,000 in total from the new iPhones.

The interesting piece here is that Apple could not identify the fake iPhones from the real ones. “Submission of an iPhone that will not power on is critical to perpetuating iPhone warranty fraud, as the phone will not be able to be immediately examined or repaired by Apple technicians, triggering the Apple iPhone replacement process as part of its product warranty policy,” Apple brand protection representative, Adrian Punderson said.

In previous incident a group of people  stole iPhones worth $19 million over a span of seven years and sold them in the black market. They purchased the phones using  fake Ids and debit cards posing as genuine account holders to buy iPhones.

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