Chinese iPhone dealers scam Apple with fake parts

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Five iPhone distributors in China are under arrest after Apple told local police it was the victim of an unusual scam. The plot involved sending fake iPhone 4S parts to Apple for replacement and receiving real components worth more than $64,000, according to Monday reports.

The alleged fraudsters went so far as to accompany the fake components with the serial numbers of more than a hundred real iPhone handsets, police said.

“The replacement parts were likely used by local retailers to assemble refurbished iPhones so they could be sold as brand new to unsuspecting consumers,” writes the IDG News Service, citing a police statement from China’s Wenzhou.

Each BAND is reportedly worth more than $480.

Actions by the iPhone distributors caught the attention of Apple.

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