App store gift card scam, where is Apple’s Corporate Social Responsibility (CSR)?

Gift card scam is nothing new nowadays but the scam method is beyond your imagination. No matter how smart you are or how young you are, under the right circumstance, you might be the victim of the scam. We are all human and there is nothing to be ashamed of being scammed, and those scams are the evil to be blamed. They take advantage of your trust. All we need to do is to get your money back and then reflect yourself afterward.

Apple gift card is the most popular and easily accessible gift card around the world. But it also provides scammers a big opportunity for fraud- Hard to trace. There is nearly no one who needs to take responsibility other than yourself: Since you did not transfer the money from your bank account directly nor did you swipe your card in a suspicious shop whether online or in person, which means police officer, bank account or retailers cannot help you.

However, this is Apple, and what they can do?

  1. Block the card Apple has the power to block the redemption code.
  2. Trace the card Once Redeeming, Apple can pinpoint the redeem account.
  3. Hold payments Apple won’t pay developer until 4–6 weeks later.
  4. Render profits Apple retains a 30% commission from (illegal) developers.

First, victims can call Apple to block the card ASAP but usually if you did not call in in time,

Apple says there is nothing they can do. Is that true?

Let’s examine 2, 3, 4 above, Apple definitely has the ability to trace their own gift cards since users need to log in with their Apple ID to redeem cards. Meanwhile, the victims can show the police report to Apple, and there should be enough time for Apple to investigate the issue because there is a high chance the third party bought cards at the black market.

Interestingly, scammers are so smart that they may create their own Apps and redeem the code to purchase those Apps for money laundering. Again,

Apple can target the code, Apple ID, and keep commissions for 4–6 weeks.

But Apple does nothing, is that ok?

Now, there is a class action fights against Apple this July: Carl Barrett v. Apple Inc. . The cause of action is stated above and Apple just filed the motion to dismiss the action and claims:

Apple already warns customers from back of gifts card not to share the codes even they have no legal duty to do so.

Summery, for now, Apple’s CSR in this case is way more than a sentence above, let alone they retain the profits from the scams.

Nonetheless, the lawsuits did raise public awareness of CSR and gift card scam profits issue.

Apple, untraceable?

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Lawyer Chu 朱韻婷律師
Attorney Chu’s point of view

FB:朱韻婷律師:下班後,來聊法律韻事~ 擁有Georgetown Law及公法碩士的雙語律師、世界百大半導體科技業前法務、黑心油及釋憲案律師、紐約法院及紅圈所經歷、政府機關及企業法務。 Open to work: 晚間及假日諮詢、轉介律師、演講、翻譯、舉辦研討會及撰狀。chuattorney@gmail.com