Apple's warranty policy was badly abused by fraudsters in China back in 2013, according to a report from The Information. In an elaborate scheme, rings of thieves would purchase iPhones and immediately return them to Apple's Store in Shenzhen, claiming they were broken. In reality, they had removed valuable components and replaced them with fake parts and even gum wrappers. After receiving the replacement phones, the teams would sell them off, while using the stolen components in refurbished iPhones. Those would then be sold off in smaller cities.
Source: The Information
Report: Chinese fraudsters cost Apple billions in free iPhone parts posted first on https://www.engadget.com
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