A massive gift card fraud scheme targeting Apple customers has resulted in losses totaling hundreds of millions of dollars, according to a 9to5Mac report citing NHPR. The New Hampshire-based operation, run by Chinese nationals, involved sophisticated theft and tampering of Apple gift cards from retail stores before they could be used by legitimate customers.

The criminals carefully opened cards to record PIN numbers and card details, then repackaged them to appear unused before returning them to store shelves. Once victims activated these tampered cards with their own money, the fraudsters would drain the balances and purchase Apple products, including approximately 4,000 iPhones valued at $8-9 million recovered in a single raid.

These stolen devices were funneled through grey market importers in China, Dubai, and South America. The investigation, conducted jointly by New Hampshire Police and the Department of Homeland Security, revealed the operation's extensive reach. Apple reportedly assisted investigators throughout the case, though the company has not issued public comment on the matter.

Consumer protection agencies have long warned about gift card scams, particularly those involving fraudulent calls demanding immediate payment. This case demonstrates why purchasing gift cards directly from official sources remains the safest option for consumers.