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Fake iPhone return scam cost Apple $12 million in losses, five people charged of fraud

We have seen these kind of scams before, but this particularly case is on a ginormous industry-like scale. Five people have been charged on counts of fraud for their involvement in a fake iPhone return scheme.

Essentially, people would take near-worthless fake lookalike iPhone models into the Apple Store, claiming they are faulty and asking for a replacement device. Apple would exchange the unit for a valuable replacement phone, which can then be sold. This procedure was allegedly carried out 16,000 times.

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