In a big win for Apple, two individuals who scammed the company to the tune of $1.5 million over a three-year period have been sentenced to 13 years in prison.
The combined sentence was handed to the offenders for developing a scheme that used Apple technology to steal from the company. Back in September last year, reports explained that these scammers used stolen point-of-sale (POS) devices that belonged at Apple Stores (internally known at Apple as an “Issac”) to generate fraudulent Apple gift cards.
According to a press release from the United States Attorney’s office, the perpetrators pled guilty to wire fraud and have been sentenced to a combined 13 years in federal jail. One offender was sentenced to 37 months behind bars in October last year. The other offender who was sentenced to 60 months in prison today has further been directed to pay the iPhone maker a whopping $1.26 million in damages.
Modus Operandi
The operation helmed by Syed Ali, aged 29, and Jason Tout-Puissant, aged 27, reportedly ran undetected from 2015 to 2017. Tout-Puissant would reportedly stroll into an unsuspecting Apple Store and steal a POS device. Apple staffers use Issacs to check inventory and sell goods to customers. After stealing one such device, the scammer would sit outside the store and use its Wi-Fi connection and employee login credentials to acquire fraudulent gift cards worth thousands of dollars.
Subsequently, Tout-Puissant loaded the gift card codes on the Wallet app and generated QR codes for them. These QR codes were then sent to Ali via iMessage and redeemed at other Apple Stores in exchange for high-value products.
According to the indictment, Tout-Puissant single-handedly redeemed 26 gift cards worth $50,000 at Apple retail outlets in Southlake, Texas. On the same day, his partner in crime, Ali, was recorded duping Apple Stores in New York.
Arrest
Eventually, the duo was caught on CCTV, stealing POS devices. Local law enforcement used GPS and cell phone signals to track them down and the FBI put them in cuffs. Apple didn’t say if its internal systems have been modified to prevent such misuse of Issacs in the future.
