Scammers Who Stole $1.5 Million From Apple Sentenced to Combined 13 Years in Jail

Two scammers who stole $1.5 million from Apple over a period of three years using the company's own technology have been sentenced to a combined 13 years in prison.

Apple Logo Cash Orange 1
It was reported in September 2021 that two scammers developed a scheme to use point-of-sale devices stolen from Apple stores to generate fraudulent Apple gift cards between 2015 and 2017.

The scam was enabled through a handheld employee-only point-of-sale 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 the indictment.

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 pair were finally caught stealing Isaac devices in Apple Stores on CCTV and were eventually tracked down using their cellphone via GPS, before finally being arrested by the FBI. They subsequently pled guilty to wire fraud.

According to a press release from the United States Attorney's Office in the Northern District of Texas, the perpetrators have now been sentenced to a combined 13 years in federal prison and ordered to pay $1.26 million in restitution to Apple. 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.

Popular Stories

New Things Your iPhone Can Do in iOS 18

20 New Things Your iPhone Can Do in iOS 18.2

Monday December 16, 2024 8:55 am PST by
Apple released iOS 18.2 in the second week of December, bringing the second round of Apple Intelligence features to iPhone 15 Pro and iPhone 16 models. This update brings several major advancements to Apple's AI integration, including completely new image generation tools and a range of Visual Intelligence-based enhancements. Apple has added a handful of new non-AI related feature controls as...
iphone 16 apple intelligence

Apple Drops Plans for iPhone Hardware Subscription Service

Wednesday December 18, 2024 11:39 am PST by
Apple is no longer planning to launch a hardware subscription service that would let customers "subscribe" to get a new iPhone each year, reports Bloomberg's Mark Gurman. Gurman first shared rumors about Apple's work on a hardware subscription service back in 2022, and at the time, he said that Apple wanted to develop a simple system that would allow customers to pay a monthly fee to gain...
iPhone 17 Pro Dual Tone Feature 1

iPhone 17 Pro Rumored to Stick With 'Triangular' Camera Design

Wednesday December 18, 2024 2:36 am PST by
Contrary to recent reports, the iPhone 17 Pro will not feature a horizontal camera layout, according to the leaker known as "Instant Digital." In a new post on Weibo, the leaker said that a source has confirmed that while the appearance of the back of the iPhone 17 Pro has indeed changed, the layout of the three cameras is "still triangular," rather than the "horizontal bar spread on the...
elevation lab airtag battery

Your AirTag's Battery Will Last for Up to 10 Years With Elevation Lab's New TimeCapsule Enclosure

Wednesday December 18, 2024 10:05 am PST by
Elevation Lab today announced the launch of TimeCapsule, an innovative and simple solution for increasing the battery life of Apple's AirTag. Priced at $20, TimeCapsule is an AirTag enclosure that houses two AA batteries that offer 14x more battery capacity than the CR2032 battery that the AirTag runs on. It works by attaching the AirTag's upper housing to the built-in custom contact in the...
apple tv 4k yellow bg feature

New Apple TV Rumored to Launch Next Year With These Features

Tuesday December 17, 2024 9:02 am PST by
The current Apple TV 4K was released more than two years ago, so the streaming device is becoming due for a hardware upgrade soon. Fortunately, it was recently rumored that a new Apple TV will launch at some point next year. Below, we recap rumors about the next-generation Apple TV. Bloomberg's Mark Gurman last week reported that Apple has been working on its own combined Wi-Fi and...
blackmagic vision pro

Blackmagic Debuts $30K 3D Camera for Capturing Video for Vision Pro

Monday December 16, 2024 4:17 pm PST by
Blackmagic today announced that its URSA Cine Immersive camera is now available for pre-order, with deliveries set to start late in the first quarter of 2025. Blackmagic says that this is the world's first commercial camera system designed to capture 3D content for the Vision Pro. The URSA Cine Immersive camera was first introduced in June, but it has not been available for purchase until...
mac pro creativity

Apple Launched the Controversial 'Trashcan' Mac Pro 11 Years Ago Today

Thursday December 19, 2024 7:00 pm PST by
Apple launched the controversial "trashcan" Mac Pro eleven years ago today, introducing one of its most criticized designs that persisted through a period of widespread discontentment with the Mac lineup. The redesign took the Mac Pro in an entirely new direction, spearheaded by a polished aluminum cylindrical design that became unofficially dubbed the "trashcan" in the Mac community. All of ...
iPhone 17 Slim Feature

'iPhone 17 Air' With 'Major' Design Changes and 19-Inch MacBook Detailed in New Report

Sunday December 15, 2024 9:47 am PST by
Apple is planning a series of "major design" and "format changes" for iPhones over the next few years, according to The Wall Street Journal's Aaron Tilley and Yang Jie. The paywalled report published today corroborated the widely-rumored "iPhone 17 Air" with an "ultrathin" design that is thinner than current iPhone models. The report did not mention a specific measurement, but previous...

Top Rated Comments

HobeSoundDarryl Avatar
36 months ago

Smart yet not... how long did they really think it would be until they were caught. One would think that every store they hit would have a massive drawer imbalance and start looking.
Perhaps Apple uses Siri to track the drawer?

"Siri, why are we $50,000 short in the drawer today?"

"I don't know what you mean by short in the drawer today... here's what I found online for short in the drawer today."

"No Siri, in the register drawer... accounting... accounting"

"I don't know what you mean by register drawer... accounting... accounting... here's what I found online for register drawer... accounting... accounting"

;)

But more seriously: sounds like "Issac" needs some touchID or faceID.
Score: 10 Votes (Like | Disagree)
sniffies Avatar
36 months ago
To prevent this scam from happening again, Apple upgrades all Apple Isaacs and Apple Newtons to Apple Alberts.
Score: 8 Votes (Like | Disagree)
johncarync Avatar
36 months ago
I looked up the two men who perpetrated this and found that one of them was arrested at a Florida airport in 2016 for having 65 counterfeit credit cards in another person's name in his carry-on luggage. In the Apple crime, he was sentenced to five years in prison. The other man has a common name and could not determine if he has a criminal history. He was sentenced to three years and one month.
Score: 6 Votes (Like | Disagree)
rpmurray Avatar
36 months ago
So they get to keep $240,000?
Score: 5 Votes (Like | Disagree)
tyranne201 Avatar
36 months ago
USA judicial system is quite bizarre. 13 years is basically a sentence for killing someone in most countries. I'm impressed how people spend time in jail for nonsense things. No wonder it has the most jailed people in the world. The fact they already are paying fines and restitution should give them no more than 5 years in jail. This is kinda broken.
Score: 5 Votes (Like | Disagree)
usagora Avatar
36 months ago

Jail? Not prison?
While tecnically different, people use the terms interchangeably. I don't think anyone's confused by it ?
Score: 5 Votes (Like | Disagree)