Apple has agreed to settle a lawsuit in the United States that accuses the tech giant of knowingly allowing scammers to exploit its gift cards and even keep a portion of the stolen funds.
According to a report by Reuters news agency, Apple and the plaintiffs worked with a mediator and agreed to the terms of a material settlement in a filing recently submitted to the U.S. District Court in San Jose, California.
The report claims that the parties involved in the lawsuit are drafting a formal settlement to be submitted to U.S. District Judge Edward Davila for preliminary approval.
In this scam, scammers pressure their victims over the phone to buy App Store and iTunes gift cards or Apple Store gift cards to pay for taxes, hospital bills, utilities, bail, and debt collection.
The scammers then ask the victims to share the codes on the back of the cards, but it is important to note that these cards come with a warning that reads: “Do not share your code with anyone you do not know.”
According to the lawsuit, Apple typically deposits only 70% of the stolen funds into the scammers’ bank accounts and keeps 30% for itself as a “commission.”
The lawsuit alleges that Apple knowingly allows scammers to convert the stolen codes into dollars, and claims that these victims likely lost “hundreds of millions of dollars” in the scam.
The lawsuit covers anyone in the United States who purchased a redeemable gift card from iTunes or App Store between 2015 and July 31, 2020.
To be eligible for settlement claims, users must provide proof of giving these codes to scammers in addition to proof of not receiving refunds from Apple.
U.S. Judge Davila rejected Apple’s attempt to dismiss the lawsuit in June 2022, saying that the plaintiffs had enough evidence to prove how the company abdicated its responsibility, even after victims claimed they had been scammed.
