$3 mn Apple scam: Fake iPhones swapped for genuine devices in the US | Mobile News

$3 mn Apple scam: Fake iPhones swapped for genuine devices in the US

Two Maryland men sent thousands of fake iPhones to Apple, tricking the company into providing $3 million worth of authentic replacements.

By: HT TECH
| Updated on: Feb 22 2024, 14:04 IST
iPhone 16 aims to surpass Samsung Galaxy S24's AI dominance THIS way
Apple scam
1/6 In the race for artificial intelligence supremacy among flagship smartphones, Apple appears to be gearing up to outshine its rivals, particularly the Samsung Galaxy S24 and Google Pixel 8 series. Reports from Taiwanese site Economic Daily News, suggest that the upcoming iPhone 16 line will be equipped with an A18 chipset boasting a Neural Engine with significantly more cores than its predecessor, the A17 Pro used in the iPhone 15 Pro and iPhone 15 Pro Max. (Apple/ Samsung)
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2/6 The Neural Engine is a crucial component of Apple's chipsets, dedicated to handling AI and machine learning tasks. Increasing the number of cores in the Neural Engine aligns with Apple's strategy to enhance its AI capabilities significantly. While the exact core count for the A18's Neural Engine remains undisclosed, the A17 Pro featured 16 cores, implying a noteworthy advancement in AI processing for the iPhone 16 series, Techradar reported.  (AP)
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3/6 Notably, this potential upgrade marks the first instance of Apple augmenting the Neural Engine's core count since the iPhone 12, indicating a substantial leap in AI capabilities for the upcoming iPhones. (Unsplash)
Apple scam
4/6 Nevertheless, it's crucial to recognize that core count alone does not determine performance, as demonstrated by the A17 Pro's Neural Engine outperforming the A16 Bionic despite having the same core count. While this leak should be taken with caution, expectations are high for the A18 to deliver significantly improved AI capabilities. (HT Tech)
Apple scam
5/6 There's speculation about whether all iPhone 16 models will feature the A18 chipset. Apple has traditionally reserved its latest chipsets for the Pro models. Furthermore, rumors suggest that certain advanced AI features may be exclusive to the iPhone 16 Pro and iPhone 16 Pro Max, potentially leaving the iPhone 16 and iPhone 16 Plus with a less powerful chipset. (Apple)
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6/6 The exact nature of the lesser chipset remains uncertain, with possibilities ranging from the current A17 Pro to a modified version of the A18 with fewer Neural Engine cores. Regardless, it appears increasingly likely that this year's Pro models will equip Apple with the hardware needed to rival Samsung and Google in the realm of AI, though the software and additional features remain uncertain. (AP)
Apple scam
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Apple scam: Two Maryland men convicted for sending fake iPhones to Apple in an eight-year scam, swindling more than $3 million worth of authentic phones. (Bloomberg)

Two individuals from Maryland have been found guilty by a federal jury on Tuesday for orchestrating a scam that involved sending thousands of fake iPhones to Apple under the guise of repairs, ultimately netting them approximately $3 million worth of authentic replacement iPhones. The Apple scam verdict was announced by the U.S. Attorney's Office for the District of Columbia.

Fake iPhone Scam Unveiled

Haotian Sun, a 33-year-old resident of Baltimore, and Pengfei Xue, a 33-year-old from Germantown, Maryland, initiated the scheme in 2017 by obtaining counterfeit iPhones from Hong Kong. The duo submitted around 5,000 fake phones to Apple and authorized service providers over a two-year period, employing tactics such as spoofing serial numbers to evade detection, according to a report by Times of San Diego.

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In addition to spoofing serial numbers, the duo employed various aliases to conceal their activities. The entire fraudulent operation amounted to about $3 million, as stated by government prosecutors. The case was led by Assistant U.S. Attorney Kondi J. Kleinman and trial attorney Ryan Dickey of the Criminal Division's Computer Crime and Intellectual Property Section, according to an official press release.

Sentencing documents revealed that Zhimin Liao, one of the culprits, personally visited 105 Apple stores across 22 states, attempting to exchange approximately 720 counterfeit iPhones and iPads. Meanwhile, Zhiting Liao visited at least 200 Apple stores in 18 states and Canada, seeking to exchange around 718 fake iPhones and iPads.

Furthermore, the wives of the Liao brothers were also implicated and have pleased guilty. Additionally, eight other co-conspirators involved in the scam pleaded guilty.

Prosecutors disclosed that the defendants attempted to exchange over 10,000 counterfeit products at stores during the eight-year operation. The authentic iPhones received in return were then exported to foreign countries, causing Apple a total loss of approximately $3 million.

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First Published Date: 22 Feb, 14:04 IST
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