College students busted for making $900,000 in fraudulent Apple iPhone returns


Two college students have been charged with an Apple warranty scam. The two are alleged to have filed fraudulent warranty claims using counterfeit iPhones. In total, two files 3,285 claims with nearly 1,500 successfully filed. The total damage to Apple is estimated to be $895,800.

ABC News:

The two said in an interview with investigators that they would pay friends and relatives to accept the replacement phones at addresses in China. Even Jiang's mother was involved in the fraudulent scheme, according to investigators.
"Jiang explained that in exchange for his labor and efforts, his associate in China pays Jiang's mother, who also resides in China, who in tum deposits the proceeds into a [bank] account that Jiang is able to access here in the United States," the court filing says.