This archive report was first published on 14 November 2019.
On November 14, 2019, the Federal Bureau of Investigation (FBI) announced the bust of a Chinese counterfeit ring that had been shipping fake iPhones and iPads worth over $6.1 million (Ksh. 622,774,010) across the world.
The investigation, which reportedly took years, involved multiple jurisdictions and led to the arrest of 14 individuals facing dozens of charges, including fraud, conspiracy, identity theft, and money laundering.
According to US Attorney Robert Brewer, the counterfeit ring had imported over 10,000 fake devices from China to the US, where they were then intentionally damaged and taken to Apple stores for replacement under warranty.
The damaged devices were then exchanged for genuine products, which were subsequently shipped to China and other countries and sold at a marked-up price.
During the investigation, the FBI traced the original devices using their International Mobile Equipment Identity (IMEI) and serial numbers, which matched the counterfeit products they were exchanged with.
Using someone else's IMEI or serial number is a form of aggravated identity theft, a crime in the US.
US Attorney Robert Brewer stated, 'The manufacture of counterfeit goods and their use to defraud US companies seeks to fundamentally undermine the marketplace and harms innocent people whose identities were stolen in furtherance of these activities.'
