Crooks under suspicion garnered $19 million through a sophisticated iPhone scam that spanned over seven years
A New York City-based fraud ring has been accused of stealing $19 million worth of iPhones over a period of seven years through a sophisticated identity theft and phishing scam operation.
The criminals allegedly used stolen identities of unsuspecting victims to fraudulently purchase iPhones and other luxury goods. The operation was ongoing for about seven years, with the ring's activities involving the misuse of victims' identities to avoid detection.
Investigators found 253 mobile phones in 39 packages, obtained through fraudulent means. The packages were paid for with cash, check, or credit card, and were all shipped at an express domestic rate to two non-residential or business locations in New York State.
The fraudsters posed as legitimate customers, upgrading phones on existing accounts and paying by spreading out payments over several months on unsuspecting customers' accounts.
The ring had a hierarchical structure, with 'top dogs' who organized and funded trips and sold the stolen iPhones. Drivers and runners traveled out of state to pick up iPhones and ship them back to the Bronx. Under the top dogs were people who stole identities and created fake documents.
Six individuals have been charged with mail fraud, conspiracy to commit mail fraud, and aggravated identity theft. The defendants have pleaded not guilty and are currently free on $100,000 bail pending trial.
The fraud ring targeted retailers spanning 34 states, though it's not clear how many phones were stolen or how many customers were affected. One cooperative witness made 18 trips for the ring and was paid approximately $100 per stolen phone. The ring provided him with a fake ID and bank card, used as a secondary form of ID.
An employee at an overnight shipping company noticed suspicious activities in 2014, leading to the uncovering of the scam. The packages bore return addresses from New York State, but were coming from out of state. Four packages contained dozens of fake credit cards, driver's licenses, and other forms of fake identification.
The size and scale of this scam illustrate that bigger operations are more likely to get caught. Apple has been contacted for comment but did not immediately respond.
Sources:
[1] https://www.justice.gov/usao-sdny/pr/bronx-man-charged-role-multi-million-dollar-iphone-theft-scheme-involving-identity-theft [2] https://www.justice.gov/usao-sdny/pr/bronx-man-charged-role-multi-million-dollar-iphone-theft-scheme-involving-identity-theft [3] https://www.justice.gov/usao-sdny/pr/bronx-man-charged-role-multi-million-dollar-iphone-theft-scheme-involving-identity-theft
- Gizmodo: The New York City-based fraud ring, accused of stealing $19 million worth of iPhones, used technology and identity theft to evade detection for seven years, targeting retailers in 34 states.
- Tech: The fraudsters posed as legitimate customers, using tech-savvy methods like phishing scams and upgrading phones on existing accounts to spread out payments over months on unsuspecting customers' accounts.
- General-News: Six individuals have been charged in this multi-million dollar iPhone theft scheme involving identity theft, with the case highlighting the importance of addressing tech-related crimes in the future of general-news reporting.
