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  • Court in China Has Sentenced 14 People for Converting US iPhones to Chinese Networks


    According to a recent report, a court in Zhengzhou, China sentenced 14 people for hacking into a Foxconn database to steal digital identity certificates that were used to convert US iPhones into Chinese networks. Out of the 14 people arrested, eight of them were former Foxconn workers according to the Wall Street Journal. The group, together, ended up converting roughly 9,000 iPhones purchased in the US and made over 3 million yuan, which translates to roughly $468,750 within a five-month span between the end of 2011 and early 2012.

    The profit in the whole issue lied within the disparity between the US and Chinese iPhone prices. An unlocked current-gen iPhone starts at $649 in the US but costs 5,288 yuan ($825) in China. Furthermore, there was even additional profit potential for used or subsidized models. The group managed to steal iPhone serial numbers and hack into the certificate system to make needed changes with the help of certain people inside Foxconn. These altered certificates were then used to activate the American iPhones

    Foxconn ended up learning about the fingerprints in its database roughly five months after the issue had occurred, at which point the company ended up notifying the police. It wasn’t made clear why there was a three-year delay between arrests and sentencing though the folks over at Legal Daily said that the verdict was what was issued “recently.”

    For those of you who didn’t know, Foxconn regularly had trouble with security in relation to Apple products. Workers have leaked both parts and specifications, the latter of which can be particularly valuable for Chinese accessory makers who are looking to get a jump on the competition. As a result, several people have been arrested and/or convicted in recent years. We’ll have to see if something like this happens again or if Foxconn can finally implement certain strategies to make their information more secure.

    Source: Legal Daily, The Wall Street Journal
    This article was originally published in forum thread: Court in China Has Sentenced 14 People for Converting US iPhones to Chinese Networks started by Akshay Masand View original post
    Comments 2 Comments
    1. XweAponX's Avatar
      XweAponX -
      A friend of mine got a brand new 64gb iPhone 6+ for 200 bucks, from China. Is that related to this?
    1. hitman10's Avatar
      hitman10 -
      Quote Originally Posted by XweAponX View Post
      A friend of mine got a brand new 64gb iPhone 6+ for 200 bucks, from China. Is that related to this?
      It is one thing saving $100 or $200 off an iphone but to think you just purchased a 64gb 6+ in china for $200 and you think its real.. too good to be true.