The report details Apple's efforts to fight iPhone repair fraud in China, which costs Apple billions of dollars a year

The information today reports Apple's five years of struggle against iPhone repair fraud. The scheme involves criminal gangs that bought or stole iPhones, removed valuable pieces such as processors and displays, and claimed that their devices were down in the Apple Store and required Genius to replace them under warranty. The coins were then sold.

At its peak, Apple considered that 60 percent of warranty repairs in China and Hong Kong were fraudulent and cost Apple literally billions of dollars a year. Apple began to take the problem seriously in 2013, and the report then details the game of cat and mouse that ensued between criminals and Apple as the company was trying to crack down on repair fraud d & # 39; iPhone …

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Apple had taken a very casual approach by replacing faulty iPhones as long as they did not appear to have been deliberately damaged. Executives estimated that fraud accounted for less than 10% of claims.

However, in 2013, an Apple data scientist counted the number of iPhones that changed Apple's ID after being repaired. This provided a very good estimate of the number of fraudulent replacements, as legitimate customers would naturally reconnect with the same Apple ID they were already using. Criminals repairing stolen iPhones light up as red flags on Apple's system. The problem of iPhone repair fraud has finally been taken seriously within Apple.

This count showed the real reality; more than 60% of the repairs made in China were fraudulent. According to information, in the 2013 fiscal year, Apple had set aside $ 1.6 billion for warranty repair costs. The company eventually spent $ 3.7 billion over this period, largely due to Chinese fraud.

Originally, Apple had stopped allowing walk-in repairs and had put in place reservation systems supposed to guarantee proof of ownership. The system was beaten by hackers who exploited the vulnerabilities of the web system and cut all slots.

Apple then asked candidate iPhone devices to run software diagnostics that would identify fake parts inside, without asking the store staff to disassemble the components and perform inspections. The thieves have bypassed this by simply making the iPhones do not turn on.

Some criminals were even more sophisticated. They acquired Apple customer registrations for previously sold iPhones, and then configured their fake iPhones to report those previously sold serial numbers, including physical burning. This would prompt Apple to provide warranty repairs for iPhones that should already have expired coverage.

Apple's adapted, but the fraudsters were relentless. In a particularly violent case, a manager at an Apple Store was threatened with a cattle needle when criminals tried to corrupt the customers' data.

Apple now requires all iPhone warranty replacements to be sent to special repair centers that can perform more rigorous testing. Apple has even added security measures to its iPhone components, including invisible dyes on batteries and a coating of iPhone processors in special sealants suitable for specific wavelengths.

The report accuses Apple's internal secret as one of the reasons why it took so long for Apple to solve this problem. It has taken time for the logistics, manufacturing and AppleCare departments to collaborate and work together on meaningful solutions.

It has taken almost five years, but it seems that Apple's practices are finally effective to fight against criminals and the fraud in iPhone repair is reduced. It is now estimated that fraudulent repairs in China have gone from a peak of 60% to around 20%. However, Apple is now facing similar problems in other markets, such as Turkey and the United Arab Emirates. It's an endless war for the biggest company in the world.