College students scammed Apple of nearly $1 million using fake iPhones replacement: Report

Two Chinese engineering students studying in Oregon put their nerdy skills to some misuse and duped tech giant Apple of hundreds of thousands of dollars.

The students, Yangyang Zhou, and Quan Jiang, ran a scam that kicked off in April 2017 and brought thousands of counterfeit iPhones into the US from Hong Kong. They then sent it to Apple complaining that they wouldn't turn on, Cnet reported.

In return, they would get fresh, original iPhones under the company's warranty system. The genuine devices were then sent abroad and sold for hundreds of dollars. The students earned from the profits.

The court documents reveal that 1,493 of the 3,069 warranty claims netted a replacement iPhone, and Apple estimated that it amounted to USD 895,800 as a result.

As per reports, both Zhou and Jiang are alleging that they didn't know the Apple devices they were getting replaced were counterfeits. A prominent loophole that allowed them to replace the iPhones easily was that Apple didn't require a proof of purchase to allow the relacement to take place.

The two are now facing criminal charges of fraud in federal court. Zhou is accused of submitting false export declarations while Jiang is accused of counterfeit good trafficking and wire fraud.  

READ: Apple Announces Apple TV+ Video Streaming Service, Will Be Available In 100+ Countries Including India This Fall

Meanwhile, Apple has officially forayed into the video streaming market with Apple TV+. Apple announced the long-rumored Netflix-rival Apple TV+ video streaming service at a star studded 'It's show time' keynote event at the Steve Jobs Theatre at Apple Park, California on March 26. While exact pricing and availability specifics are still under the wraps, Apple confirmed that Apple TV+ will launch in over 100 countries including in India this fall (sometime in September). 

“We’re honored that the absolute best lineup of storytellers in the world - both in front of and behind the camera - are coming to Apple TV+,” Eddy Cue, Apple’s senior vice president of Internet Software and Services said in a statement. 

Apple is said to be investing over $1 billion to produce in-house original content this year.

READ: Beats Powerbeats Pro Launched As High-performance Workout Alternatives To Apple’s AirPods 2

(With ANI inputs)