More than a thousand ‘deceptively real-looking’ fake iPhones were used to carry out an AppleCare fraud operating between Hong Kong and Switzerland.
Two Chinese citizens, a mother and son, have been charged with fraud. The son faces a four-year prison sentence, as well as being expelled from Switzerland, where he has lived for almost 20 years …
Swiss site SRF reports that the pair will appear in court today and tomorrow.
The fraud used a mechanism previously seen in a $1M scam. Very realistic but non-functional iPhones are taken to Apple Stores and a replacement claimed under warranty. In this case, the fake phones had been given IMEI (International Mobile Equipment Identity) numbers matching those of genuine iPhones with an AppleCare+ policy in place.
The phones had simulated water damage. In these circumstances, where the phone will not power on, Apple does not carry out any further investigatory work in-store due to the risk of a short-circuit which might lead to a battery fire. On checking that an AppleCare+ policy covered the phones for accidental damage, the stores replaced the phones with new ones. All the scammers had to pay was the CHF99 ($107) deductible.
The son ran the scam on more than 1,000 iPhones, and his mother an additional 100 plus.
The pair do not appear to be the main perpetrators: SRF reports that they acted as intermediaries, receiving the fake phones ..
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