iPhone trafficking scheme uncovered involving Apple store employees

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Only cause the video is so terrible:

Guy sets up camp at an Apple store
Gives people $200-$300 to sign a contract and give the guy their subsidized iPhone
People who take the bait are left with the contract to deal with, probably unable to pay it since they just took this guy's $200-$300 bait.
Guy sells unlocked iPhone for $700 online

Apparently one Apple store employee is in on it, giving out the contracts quickly
 
iMax said:
Generally costs about the same after two years, except you get an unlocked iPhone. And no single network locking you in.
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I guess if you want Apple there isn't much choice. There isn't a $350 Nexus alternative. Hell I just bought a Blu Life One for $230 and I'm more than happy.
 
iMax said:
Generally costs about the same after two years, except you get an unlocked iPhone. And no single network locking you in.
Click to expand...

But you still need to pay for cellular service for those 2 years on top of the $700. Do many people really switch their providers constantly?
 
Future said:
But you still need to pay for cellular service for those 2 years on top of the $700. Do many people really switch their providers constantly?
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You could use it with cheaper services like T-Mobile or Straight Talk in the US. Where you're not paying for your super subsidised phone.
 
Future said:
But you still need to pay for cellular service for those 2 years on top of the $700. Do many people really switch their providers constantly?
Click to expand...

Yup, but generally the cellular service for a sim-only plan minus the equivalent subsidy of a standard phone contract equalises the loss. Plus, not being tied to your carrier is bliss. Oh, and early upgrades.
 
taahahmed said:
Holy... This is just despicable to do. How do these people sleep at night?
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Some of the "victims" are homeless, or just straight up give false information, that way they can't be chased down by the service providers. That's why it's good to have an employee on it, so they can just give people contracts without checking for ID and whatnot.

So the real victims here are the people who gave their real information and the service providers.
 
Future said:
But you still need to pay for cellular service for those 2 years on top of the $700. Do many people really switch their providers constantly?
Click to expand...

For me, it was more about not being tied to my plan. Whenever a deal came about, I was able to change my plan to take advantage of it because I'm on a no-contract carrier. By Canada's standards, my plan is pretty damn cheap.
 
lol @ the "this guy" animation

This is top notch reporting as far as i'm concerned. Dude notices something fishy, brings a goddamn film crew and tries to interview every person involved.
 
Epix said:
http://www.9news.com/story/news/investigations/2014/04/24/9wtk-iphone-scheme/8093499/

Sad this type of thing goes on. Wonder how Apple and the carries are going to respond...
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They aren't? I suspect that Apple employee's time with the company is not going to be long though.

I dunno if what this guy's doing is actually illegal. He's not putting a gun to these people's heads to make them sign up for these contracts, he's just preying on their ignorance and desperation. Immoral, but I dunno if you could charge them for this. If anything, I suspect the illegal stuff might be related to selling these phones to people who can't actually pay the associated plan costs, which would shoot the saps involved rather than the guy profiting.
 
I work in a Phone store here in the UK, this is very common. We get these types of people in our stores all the time. They send in these stupid girls who think they are getting a good deal and some cash, they think calling us back to report the phone stolen will stop the contract but it wont.
 
Scammers are CONSTANTLY posting ads asking for people to do this here on CL in the SF bay area.

You'd think that people would be smart enough not to fall for that shit, but apparently they do because the scam ads are always there.
 
This is pretty scummy. But I do find it rather insane that anyone would buy into this scheme, I guess some people have zero idea how cell contracts work.
 
Alchemy said:
This is pretty scummy. But I do find it rather insane that anyone would buy into this scheme, I guess some people have zero idea how cell contracts work.
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You know what else is completely insane? Nigerian scam emails but people still fall for them because the world is full of not so smart people.
 
I'm not sure I understand. How do these people think they're getting a good deal when the contracts end up costing way more than $200 over time?
 
Just so I'm understanding this: The contract that they sign makes the phones unlockable? Or are these phones already unlocked because they've had them for awhile?

EDIT: Ah I think I got it. Anyone can unlock a phone. They're just enabling the phone to be used by another person with the contract.
 
Buzzati said:
Just so I'm understanding this: The contract that they sign makes the phones unlockable? Or are these phones already unlocked because they've had them for awhile?

EDIT: Ah I think I got it. Anyone can unlock a phone. They're just enabling the phone to be used by another person with the contract.
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Unlocking means using it on another carrier that the phone is compatible with. Phones are not tied to specific people or phone lines only to caarriers.
 
Sad, they should apply this entrepreneurial spirit to something legal and maybe making some of their life instead of being a criminal.
 
camajise said:
But att won't unlock a phone that's still on contract. How are they unlocking them? Apple or att employee in on the scam?
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There are a lot of people on eBay and with their own websites that sell unlocks for various carriers. They must know someone at every carrier. Here is one: http://chronicunlocks.com

chickdigger802 said:
Why won't you buy an unlock iPhone At the same price... At an apple store vs a hobo?
Click to expand...

If you take the iPhone internationally, like China, where taxes add like 20%, buying it for the US price is a deal.
 
We used to see this a lot when I was at AT&T. People would pay someone to come in and get 5 lines, all iPhones. Then they'd default on the contracts. We also used to see it with fake socials.
 
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