An Apple gift card led to hundreds of millions of dollars in losses for buyers. A raid recovered 4,000 iPhones worth between $8 million and $9 million, with the New Hampshire-based operation even involving a murder.
See also: The safe purchase of Apple gift cards from third parties is being questioned
This sophisticated operation began by stealing Apple gift cards from retail stores, which were then altered and placed back in stores. The New Hampshire operation involved carefully opening the cards to record the PIN and other critical information, while making them appear unused. The cards were then repackaged and placed back in stores.
When a card was activated with a balance, the organization was notified, took the money from the card, and used it to purchase Apple products, such as iPhones and MacBooks.
See also: Chase takes over the Apple Card credit card
The balance loaded onto the cards was used to purchase Apple products, including approximately 4,000 iPhones worth $8 to $9 million. These devices were then sold to gray market importers in China, Dubai, and South America.
The full extent of the operation, which was run by Chinese nationals, is said to have been in the hundreds of millions of dollars. The investigation was conducted jointly by the New Hampshire State Police and the Department of Homeland Security. Apple is said to have assisted investigators, although the company has not commented.
The sheer scale of this business is truly impressive. The moral of the story is to only buy or give cards from the company's retail stores.
See also: Gift Cards & Cybersecurity: How to avoid falling victim to fraud
Apple gift cards are heavily associated with scams in general, with the FTC warning consumers about the most common version — where someone calls claiming to be from a government agency or business, demanding immediate payment via gift card to avoid arrest.
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