Counterfeit iPhones take bite out of Apple

Published April 12, 2019 4:00am ET



The rise of online shopping made it easier for shoppers anywhere to buy virtually anything, but it has also raised the odds of getting ripped off for consumers and merchants alike, as illustrated by the federal charges against two Chinese students accused of bilking iPhone maker Apple out of nearly $900,000.

The suspects, Quan Jiang and Yangyang Zhou, both in the U.S. on student visas, received counterfeit iPhones from an associate in China, then submitted them to Apple for replacement under the Cupertino, Calif.-based company’s warranty program, federal prosecutors said in a complaint filed in U.S. District Court in Portland, Ore.

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