Students cheat Apple huge money using fake IPhones

Apple'repaired thousands of fake iPhones before it smelled a scam

Apple'repaired thousands of fake iPhones before it smelled a scam

It seems Apple has been scammed by a couple of students, but it doesn't look likely to end well for them.

Those documents note that 1,493 of the 3,069 warranty claims netted a replacement iPhone, and Apple estimated that it $895,800 as a result.

Two Chinese students in Oregon in the USA allegedly duped Apple of iPhones worth around $1 million, according to a report by The Oregonian. They had bulk shipments of counterfeit handsets shipped to them from China, and submitted those to Apple as "iPhone won't power on" cases, both online and in stores.

According to reports, Quan Jiang and Yangyangg Zhou, both foreign students on US visas, were receiving shipments of counterfeit iPhone knockoffs from China.

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Several boxes that contained counterfeit Apple iPhones were also found addressed to Zhou as well. The company denied some of the claims but fulfilled others, sending the two students over 1,400 genuine iPhones to replace the "defective" fake units.

Quan Jiang and Yangyangg Zhou then approached Apple stating that they have received defective phones and got them replaced with original devices. The Cupertino, California company sent Jiang cease-and-desist letters after he was identified as one of the alleged smugglers by December 2017, but they were ignored. Each of those new phones was then shipped overseas and sold for a healthy profit, with a share being sent to Jiang's mother who then transferred it to Jiang's bank account. The company says that as they could not be switched on, they couldn't be "immediately examined or repaired by Apple technicians, triggering the Apple phone replacement process as part of its product warranty". A pair of college students in OR learned that the hard way after they managed to bleed the tech giant for almost a million dollars before being nabbed by authorities.

While Zhou is being accused of illegally exporting goods, Jiang is facing charges on illegally trafficking in copied goods and committing wire fraud, the report noted.

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