Apple in Trouble for Refusing to Do More About Gift Card Scams

• Apple has maintained a somewhat indifferent stance regarding the gift card scams, and people are now suing them for it.
• The plaintiffs believe that Apple is simply after the money, straight out accusing them of knowingly allowing the scams.
• Apple has a dedicated reporting webpage, but they are not very keen on approving money returns.

A class-action lawsuit targeting Apple has been filed in the US District Court of California, accusing the consumer electronics giant of knowingly and recklessly enabling iTunes gift card scams. The four plaintiffs who are acting on behalf of all others similarly situated believe that Apple has multiple ways and opportunities to tackle these scams. Yet, they choose to do very little about it.

In fact, the lawsuit mentions Apple’s 30% commission and presents this as an imperative incentive for the company to continue allowing these scams to take place.

Apple has a dedicated webpage and line where people can report gift card scams. Typically, they acknowledge the problem, and it looks like they’re willing to do something about it. However, many accuse Apple of dismissing most of the reports that arrive through that channel, calling them “formulaic.”

Moreover, Apple is accused of purposefully hiding the fact that any lost amount is retrievable even after six weeks following the payment. Instead, it makes customers believe that there’s nothing that can be done.

The lawsuit claims that the amount made through iTunes gift card scams between 2015 and 2019 must be around $1 billion, so Apple has made roughly $300 million in this period. Would this amount be enough to justify Apple’s stance on the matter? All companies, including Apple, are after profits, of course, but we cannot accept that Apple is letting scams hit its community just to make more money.

What is most probably the case here is that either party’s intentions cannot be easily confirmed. There’s an insurmountable level of impracticality that underpins that work of having to review each gift card transaction.

Finally, if there were a stringent reviewing system in place, the potential for abuse would shift on the other side, as payees would dispute legitimate transactions after receiving their goods and services. Still, all of this will have to be proven in the California court, while facing demands for a $5 million compensation.

In general, these scams are really prevalent today, tricking mostly categories of vulnerable people, like the elderly. If we were to give you a piece of advice, that would be to treat all gift card payment requests with extra care. In many cases, they are scamming attempts investing in a false sense of urgency and fear.

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