2020 saw the settlement of a class action lawsuit brought by plaintiffs who claimed Apple profited from a gift card scam.
According to Reuters, the Cupertino, USA-based company is facing allegations of both profiting from and failing to assist victims of an Apple prepaid gift card scam. With the mediator’s assistance, Apple and the plaintiffs have now settled.
Records submitted to the federal court in San Jose, California, indicate that Apple has decided to resolve the legal dispute. The “defective apple,” according to Reuters, is preparing a formal agreement to present to the judge for initial approval. An 11-person class action lawsuit was filed in June 2020, claiming that Apple had misled users when it claimed there was no way to track down or get the value of gift cards refunded. However, the plaintiffs countered that this claim was unfounded.
Prepaid gift cards, like store and iTunes gift cards, are increasingly being used in scams that aim to steal victims’ money. According to the US Federal Trade Commission (FTC), a scammer is always someone who requests payment with gift cards.
They could consist of different imposters, some of whom might even pretend to be from a technical support department and ask for money to fix the computer. Calls pretending to be from family members in need of urgent financial assistance are a common part of scams.
The gift card number and PIN on the back of the card must be provided by the victim when they purchase a gift card. The money on the card can be immediately accessed by fraudsters thanks to this information. Theft cards are used by con artists to purchase expensive goods like laptops and smartphones. Since gift cards are used to buy apps, iTunes gift card scams operate a little differently.
“Apple” holds all the money for about 4 to 6 weeks, from the time of purchasing the application to paying the developer. During this period, the company has the right to refund 100% of the card value. In addition, Apple also takes 30% of total app sales on the App Store. Therefore, the “defective apple” is always able to refund the money even if the scammer has been paid. It is still unclear how much Apple will pay victims and when they will receive compensation.