Thousands of shuffles sent in fake iPod scam
21st Mar 2009 | 00:28
Apples returns policy looked too good to be true
What do you get if you steal almost ten thousand iPods and try to resell them to unsuspecting customers? Arrested and charged with fraud - if you're a hapless Michigan crook, that is.
Weekend reports suggest that Nicholas Woodhams from Grand Rapids in the US state found a loophole in Apple's returns policy that he tried – unsuccessfully, if the charges are upheld – to exploit.
He allegedly generated valid serial numbers for thousands of fictional iPod shuffles and filed replacement requests with Apple, listing them all as broken.
As he guaranteed to return the 'damaged' iPods with a credit card as security, Apple willingly shipped him well over 9,000 new shuffles as replacements, which he began selling for $49 (£34) each.
Sadly for Woodhams, the invalid credit card he used showed up the scam and led to the authorities moving in to charge him with fraud and money laundering.