Apple Profits Off iTunes Gift Card Scams

Despite possessing unfettered oversight of its platforms, Apple has done little to stop an “epidemic” of iTunes gift card scams and reaps a hefty profit on purchases made with money bilked from victims, a proposed class action alleges.To get more news about 充值苹果礼品卡, you can visit nnxwheels.com official website.

The 47-page lawsuit says that while Apple has for years been aware of a scheme that cheats victims out of large sums of money via iTunes gift cards—and has the capability to pinpoint who might be responsible—the company is incentivized to allow the scam to continue given it reaps a 30-percent commission on purchases made using the gift cards.

“Apple dedicates a webpage to [the scam], but apparently does little more,” the lawsuit says, alleging Apple chooses to retain scam-derived commissions while falsely informing consumers that all of the money they lost is “irretrievable.”

Though the defendant claims that the funds on an iTunes gift card will likely be spent by scammers before a victim can contact the company or law enforcement, Apple chooses to retain the 30-percent commission for itself while waiting four to six weeks to remit the remaining—supposedly irretrievable—money to third-party app store and iTunes store vendors, the complaint says.

The plaintiffs, who range in age from 50 to 71 years old, say scammers have targeted senior citizens and other vulnerable groups, demanding iTunes gift card numbers over the phone as payment for taxes, hospital bills, utilities or debts. More recently, scammers have taken to “preying on the high levels of emotion” generated by the COVID-19 pandemic given seniors “may be more isolated than before,” the case states.

“Scammers prey on fears and sympathies by promising testing kits, vaccines, and cleaning services, and soliciting donations for charities or organizations impacted by the pandemic,” the complaint says. “Many such scammers are seeking payment in iTunes gift cards.”According to the lawsuit, scammers can make money off iTunes gift cards in one of two ways.

First, a scammer can use the stored value on an iTunes gift card to buy App and iTunes store content for apps they control, the case says. Through this method, a scammer in control of an app can receive payment from Apple, minus the company’s 30-percent commission, four to six weeks after spending the value of the wrongfully obtained iTunes gift card, according to the suit.

Notably, the lawsuit says Apple has in the past shut down apps that have engaged in this type of fraudulent conduct, which the plaintiffs say begs the question of what the defendant does with proceeds obtained through this type of scam.

Second, a scammer can obtain iTunes gift card numbers and then sell the numbers to third parties who then use them to buy App or iTunes store products. The suit states, however, that this type of grift “involves significant counter-party risk and steep discounts,” making it a less profitable way for scammers to monetize a stolen gift card.