Apple has a pretty regulated procedure when it comes to warranty claims. However, an electronic store in China found certain loopholes in Apple’s warranty system and turned a huge profit from it.

An ingenious group of five employees carried out a high-tech scam by returning fake iPhone components to Apple by claiming them to be broken “official parts”, and in return they received genuine Apple components from which they built and sold real iPhones.

According to the report, the retailer had managed to submit an astounding number of 121 fake iPhone 4S internal boards to Apple, until the Fruit giant found out that components were not genuine. It took Apple a month to detect this fraud, after which the police took action and arrested store engineers along with staff members.

Looks like these folks misunderstood what Apple actually does with those faulty parts, they might have presumed for the wealthy iPhone maker to just destroy the parts that came in for replacement instead of inspecting them.

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