International Fraud Ring Targets Apple Products in $4.8 Million Scheme
Apple products have become the centerpiece of a large-scale international fraud operation, as three individuals admitted guilt in a scheme that exploited stolen gift cards to acquire millions of dollars’ worth of Apple devices. Naxin Wu, 26, Mengying Jiang, 34, and Mingdong Chen, 28, pleaded guilty in federal court to Conspiracy to Commit Wire Fraud, U.S. Attorney Jane E. Young announced.
Organized criminal networks in China orchestrated the fraud by acquiring U.S. gift cards through hacking, romance scams, and elder fraud schemes. These stolen gift card details were transmitted to operatives in the United States via a Chinese messaging platform.
The operatives, including Wu, Jiang, and Chen, used the stolen gift cards to purchase high-value Apple products such as iPhones, MacBooks, and iPads. These electronics were then consolidated in warehouses and shipped to China, Hong Kong, and other parts of Southeast Asia for resale. Operating in states like New Hampshire, which has no sales tax, allowed the fraudsters to maximize profits.
Wu, Jiang, and Chen operated as part of a New Hampshire-based cell within the conspiracy. Wu and Jiang purchased stolen gift cards at a discount and either used them personally or distributed them to others, including Chen. Investigators found that Wu was responsible for $1.4 million, Jiang for $3 million, and Chen for $400,000 in fraudulent gift card transactions.
Apple’s global reputation and high resale value make its products particularly attractive to fraudsters. Devices like iPhones and MacBooks are easy to sell, retain their value, and are consistently in demand worldwide. Despite Apple’s security measures, such as requiring gift cards to be activated at the point of sale, fraudsters continue to exploit vulnerabilities in creative ways.
The defendants face up to 20 years in prison and significant fines under the charge of Conspiracy to Commit Wire Fraud.