Scammers Used Devious Tactic to Steal $1.5 Million Worth of Apple Products in Secret

Two scammers stole $1.5 million from Apple over a period of three years using the company's own technology, Business Insider reports.

Apple Logo Cash Orange 1
One of the scammers stole $50,000 worth of digital Apple gift cards in Texas, while on the same day, his partner used the gift cards to buy thousands of dollars worth of Apple products in New York. The haul in Southlake, Texas, alone totaled $50,000 using 26 digital gift cards.

The scam was enabled through a handheld employee-only device called an "Isaac." Retail employees carry Isaacs around in the store, allowing them to check stock and sell products to customers wherever they are.

One of the scammers simply walked into Apple Stores across the country and waited for opportune moments to steal an Isaac device. They then sat outside the same store, still connected to its Wi-Fi network, and used the logged-in employee account on the Isaac to acquire thousands of dollars worth of digital gift cards.

The digital gift card redemption codes were then loaded into the Wallet app to generate QR codes, which were screenshot and sent via iMessage to the other conspirator, who was then able to walk into other Apple Stores and buy a range of high-value Apple devices. This process was then repeated across the country, allowing the pair to defraud Apple out of more than $1.5 million in total, according to prosecutors.

The scheme took place between 2015 and 2017 and was carefully planned, prosecutors said in court filings. The pair were finally caught on CCTV stealing Isaac devices and were eventually tracked down using their cellphone via GPS. They have now pleaded guilty to wire fraud and are awaiting sentencing.

It is unclear if Apple has made any changes to its internal systems and access to employee accounts on Isaacs to prevent the same scam from being attempted again.

Related Stories

Apple Logo Cash Orange 1

Former Apple Employee Charged With Defrauding Company of Over $10 Million

Monday March 21, 2022 3:57 am PDT by
A former Apple employee involved in the company's supply chain and responsible for making order purchases and invoicing them back to Apple has been charged by U.S prosecutors for defrauding the tech giant of over $10 million, Reuters reports. According to court filings in San Jose, California seen by Reuters, Dhirendra Prasad, a former employee in Apple's supply chain, is facing five...
Apple Giftcard Feature

Deals: Get $10 Amazon Credit When Purchasing a $100 Apple Gift Card

Monday October 4, 2021 7:52 am PDT by
Amazon today is offering $10 in Amazon credit when you spend $100 or more on the Apple Gift Card. This card is digital and will be delivered to you via email, and the offer will automatically be applied at the checkout screen. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the...
apple park evacuation

Some Apple Park Employees Evacuated Due to Possible Hazmat Situation [Update: Resolved]

Tuesday March 15, 2022 2:12 pm PDT by
A small number of Apple employees appear to have been evacuated from the Apple Park campus in Cupertino, California, according to NBC Bay Area. There is little information at this time, but the news site says that a "portion" of the campus was evacuated. According Santa Clara County Fire Department Captain Justin Stockman, first responders found an envelope containing an unknown white...
mir russia apple pay

Apple Closes Loophole That Allowed Mir Cardholders to Use Apple Pay in Russia

Friday March 25, 2022 1:41 pm PDT by
Apple this week suspended its Apple Pay service for the Mir card payment system in Russia, effectively closing a loophole that had allowed Russians to continue to use the Apple Pay service. According to Reuters, Mir had remained connected to Apple Pay even after Apple restricted the use of the payments service in Russia on March 1 for Mastercard and Visa cardholders. Russia's National...
app store blue banner russia

App Store and iTunes Purchases Reportedly 'Turned Off' in Russia

Thursday March 10, 2022 4:39 am PST by
iPhones.ru is reporting that iTunes and App Store purchases can no longer be made by Apple device users located in Russia, leaving them unable to pay for apps, media, or Apple services. According to the Russia-based site, it is now impossible for users to add funds to their App Store or iTunes Store accounts using regional bank cards issued by Russian banks including Alfa-Bank, Sber, and...
21

Deals: Take $300 Off 21.5-Inch iMac and Get $10 Amazon Credit When Buying $100 Apple Gift Card

Friday December 17, 2021 11:59 am PST by
We're tracking a pair of last-minute Christmas deals on Amazon today, including a record low price on the 21.5-inch iMac and free Amazon gift card credit with the purchase of an Apple Gift Card. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. Starting with the ...
apple park drone june 2018 2

Google Employees to Return to Offices on April 4, Will Apple Follow?

Wednesday March 2, 2022 1:19 pm PST by
Google today told employees that they will need to return to their physical offices starting on Monday, April 4, reports CNBC. This will apply to employees located in the Bay Area, which is where Google has a Mountain View-based main campus, along with employees in other locations around the United States. Santa Clara County,t where Google and Apple are located, has been lifting...
Target November Deals 1

Black Friday Spotlight: Target Offers $15 Gift Card With Purchase of $100 Apple Gift Card

Thursday November 18, 2021 7:36 am PST by
We've been tracking early Black Friday deals in our dedicated Black Friday Roundup, and in an effort to prepare our readers for the big shopping event we're highlighting sales store-by-store in the lead-up to November 26. Note: MacRumors is an affiliate partner with Target. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running....

Popular Stories

Emergency SOS via Satellite iPhone YT

Apple's iPhone 14 Emergency SOS via Satellite Feature Saves Stranded Man in Alaska

Thursday December 1, 2022 4:37 pm PST by
With the launch of iOS 16.1, Apple rolled out a Emergency SOS via Satellite, which is designed to allow iPhone 14 owners to contact emergency services using satellite connectivity when no cellular or WiFi connection is available. The feature was put to the test in Alaska today, when a man became stranded in a rural area. In the early hours of the morning on December 1, Alaska State Troopers ...
iPhone Measure Height

Newer iPhones Allow You to Measure Someone's Height Instantly — Here's How

Saturday December 3, 2022 10:23 am PST by
iPhone 12 Pro and Pro Max, iPhone 13 Pro and Pro Max, and iPhone 14 Pro and Pro Max models feature a LiDAR Scanner next to the rear camera that can be used to measure a person's height instantly in Apple's preinstalled Measure app. To measure a person's height, simply open the Measure app, point your iPhone at the person you want to measure, and make sure they are visible on the screen from...
General iOS 16 Feature Yellow

iOS 16.2 for iPhone Launching This Month With These 8 New Features

Thursday December 1, 2022 8:44 am PST by
Apple plans to publicly release iOS 16.2 for the iPhone in mid-December, according to Bloomberg's Mark Gurman. The update remains in beta testing for now, with at least eight new features and changes already uncovered so far. iOS 16.2 introduces a number of new features, including Apple's new whiteboard app Freeform, two new Lock Screen widgets for Sleep and Medications, the ability to hide...
iOS 16

When Will iOS 16.2 Be Released?

Friday December 2, 2022 2:13 pm PST by
Apple in late October began testing iOS 16.2 and iPadOS 16.2 updates, providing betas to both developers and public beta testers. As of now, we've had four total betas, with the fourth beta having been released earlier this week. iOS 16.2 and iPadOS 16.2 are expected before the end of the year, and we thought we'd try to narrow down the launch timeline. With only four betas released since...
14 vs 16 inch mbp m2 pro and max feature 1

Major RAM Upgrade Coming to Next-Generation MacBook Pro

Friday December 2, 2022 2:03 am PST by
The next-generation MacBook Pro models could feature faster RAM, according to a recent report from a reliable source. MacRumors Forums member "Amethyst," who accurately revealed details about the Mac Studio and Studio Display before those products were announced, recently provided information about Apple's upcoming 14- and 16-inch MacBook Pro models. The new machines are expected to feature...
iPad 10 Battery Pull Tabs

iPad 10 Teardown Reveals Why Device Isn't Compatible With Apple Pencil 2

Thursday December 1, 2022 10:48 am PST by
Do-it-yourself repair website iFixit today shared a video teardown of Apple's new 10th-generation iPad, providing a closer look inside the tablet and revealing why the device lacks support for the second-generation Apple Pencil. The teardown reveals the internal layout of the iPad, including its two-cell 7,606 mAh battery, logic board with the A14 Bionic chip, and more. As suspected, the...
android apple fix rcs

Google Again Criticizes Apple for Not Adopting RCS for Messages App: 'Their Texting is Stuck in the 1990s'

Friday December 2, 2022 10:54 am PST by
Google is continuing on with its attempt to convince Apple to adopt the RCS messaging standard, publishing a new "it's time for RCS" blog post. Promoted heavily by Google, RCS or Rich Communication Services is a messaging standard that is designed to replace the current SMS messaging standard. It provides support for higher resolution photos and videos, audio messages, and bigger file sizes, ...
ios 16 2 beta notifiation center

PSA: Older Notifications No Longer Hidden in Notification Center in iOS 16.2 Beta 4

Friday December 2, 2022 5:23 am PST by
In a small but significant change to the way the Notification Center works in the latest iOS 16.2 beta, older notifications are now shown by default without having to swipe up. In the current release as well as earlier versions of iOS 16, users do not automatically see older notifications in the Notification Center like they did in iOS 15, and instead must manually swipe up from the middle...
lastpass

LastPass Hacked for Second Time This Year

Friday December 2, 2022 4:04 am PST by
Password management app LastPass says it is investigating a security incident after an "unauthorized party" compromised its systems on Wednesday and gained access to some customer information. The information was stored in a third-party cloud service shared by LastPass and parent company GoTo, said LastPass CEO Karim Toubba in a blog post. Toubba said the hackers used information stolen from ...
Apple Card Savings

Apple Card Customer Agreement Updated for 'Upcoming' Savings Account Feature

Friday December 2, 2022 11:43 am PST by
Goldman Sachs this week updated its Apple Card customer agreement to reflect the credit card's upcoming Daily Cash savings account feature, which was expected to launch with iOS 16.1 but appears to have been delayed. "To enable new ways to use Daily Cash like the upcoming Savings account feature, we are updating the Daily Cash Program section of your Apple Card Customer Agreement," reads an...