Apple settles allegations of profiting from fraudulent gift cards

The Cupertino, US-based company was accused of failing to provide assistance to victims of a scam involving prepaid Apple gift cards and profiting from them. Apple and the plaintiffs have now reached a settlement with the help of a mediator, according to Reuters.

Apple has decided to settle the lawsuit, according to a filing in federal court in San Jose, California. Reuters reported that the company is drafting a formal agreement to present to a judge for preliminary approval. In June 2020, a class action lawsuit was filed by 11 people, claiming that Apple had been deceptive in saying there was no way to track or refund the value of gift cards, but the plaintiffs said that argument was incorrect.

Scams involving prepaid gift cards, such as store cards and iTunes gift cards, are on the rise, with victims being tricked into paying with money. The Federal Trade Commission (FTC) says anyone asking for payment in gift cards is almost always a scammer.

Apple giải quyết cáo buộc hưởng lợi từ thẻ quà tặng lừa đảo- Ảnh 1. — Gift Cards' hold process makes it easy for Apple to avoid scams

These can include a variety of impersonators, perhaps even claiming to be from some tech support department, asking for payment to fix a computer. Some scams involve a caller posing as a family member in need of immediate money.

When victims purchase a gift card, they are prompted to provide the gift card number and PIN on the back of the card. That information gives the scammers immediate access to the funds stored on the card. The scammers use the stolen cards to buy laptops, smartphones, and other high-value items. The iTunes gift card scam works a little differently, because the gift cards are used to buy apps.

Apple holds the entire amount for about four to six weeks, from the time the app is purchased until it pays the developer. During this time, the company has the right to refund 100% of the card value. Additionally, Apple takes 30% of all app sales on the App Store. So Apple always has the ability to refund the money even if the scammer has been paid. It is not yet clear how much Apple will pay the victims and when they will receive their compensation.

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