Oregon students returned thousands of fake iPhones, costing Apple $900k

During an interview at a Portland CBP office in December 2017, Jiang said a Chinese associate routinely shipped him packages of up to 30 iPhones that wouldn’t power on, and Jiang would then send them to Apple — one by one — to be fixed under the warranty, court records said. Apple records showed Jiang was associated (by name, email, address or computer) to 3,069 iPhone warranty claims — and 100 percent of those alleged the phone being returned wouldn’t power on, according to court records. An Apple representative explained that “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 phone replacement process as part of its product warranty policy,” court records said

The tech company’s records showed that 1,493 of Jiang’s more than 3,000 warranty claims ended with Apple sending him a replacement phone.

Source: www.businesstelegraph.co.uk