The tech behemoth Apple has decided to pay a lawsuit that was brought against it for allegedly participating in iTunes gift card scams. The conditions of the settlement are presently pending preliminary approval from US District Judge Edward Davila. They were presented in a filing that was filed with a federal court in San Jose, California.
The complaint centers on Apple’s alleged complicity in enabling con artists to use iTunes gift cards for fraudulent purposes. Using fear-mongering techniques, the scam forced victims to buy Apple gift cards under false pretenses such debt collection, medical costs, taxes, or bail. After being specifically warned not to do so, victims were told to reveal card codes.
Apple is accused of knowing that it is turning stolen codes into financial assets by keeping 30% of the proceeds as a “commission” and transferring 70% of the earnings into the bank accounts of the fraudsters. According to the lawsuit, victims are claimed to have lost “hundreds of millions of dollars” as a result of the hoax.
The complaint claims that anyone in the US who bought gift cards that could be redeemed on iTunes or the App Store between 2015 and July 31, 2020, gave codes to scammers and did not get reimbursed from Apple.
When Apple’s motion to dismiss the case was denied by Judge Davila in June 2022, the legal process gathered momentum. The judge found it unethical that Apple denied any responsibility, even after victims claimed to have been duped.
This legal development emphasizes how crucial it is becoming to hold internet companies responsible for the safety of their customers and their financial stability. It also acts as a cautionary tale about the possible dangers of using gift cards and conducting digital transactions.
Although requests for comment from Apple and the plaintiffs’ attorneys have not yet been addressed, the mediation process was important in determining the parameters of the settlement. An important step in resolving the fallout from the iTunes gift card scam is that the formal settlement is currently in the drafting stage and is awaiting the judge’s preliminary approval.