This wild story will make you think twice about buying Apple gift cards

If you ever go to a local supermarket or convenience store to buy an Apple gift card, you may think twice after reading a new report from New Hampshire Public Radio. The state of New Hampshire in the U.S. appears to be the center of a global criminal operation that involves stolen Apple gift cards, huge quantities of Apple hardware bought with those cards, and sales of the gear to gray-market importers who then sell the devices overseas.

The N.H. operation started with the theft of Apple gift cards in retail outlets. The cards were carefully opened so the PIN and other vital statistics could be recorded, but otherwise looked unused. Then the cards are repackaged and placed back in the stores. When the card was activated with a balance, the organization was notified, took the money from the card, and then used it to buy Apple products, such as iPhones and MacBooks.

The Apple products were bought in New Hampshire because the state doesn’t charge sales tax, which allowed the organization to make the most of the stolen money. The products were then shipped to a warehouse in New Hampshire, where the devices were repackaged and sold to gray-market importers in China, Dubai, or South America, who then turned around and sold the devices to individuals or other outlets.

According to the report, police in New Hampshire partnered with the U.S. Department of Homeland Security to crack down on the operation that was run by Chinese nationals and involved hundreds of millions of dollars. In one bust, a New Hampshire warehouse housed 4,000 iPhones, estimated to be valued at $8 to $9 million. Nearly 20 people have been charged, with charges including wire fraud, stealing gift cards, and receiving stolen property. The report also states that Apple fully cooperated in the investigation, though it did not comment on NHPR’s article.

NHPR’s report is compelling, explaining in detail how the scam works, the process of laundering the purchases, some of the problems that have arisen in court, and how one person was murdered during a robbery of a warehouse. I encourage you to give it a read.

How to protect yourself from gift card scams

In 2024, the Federal Trade Commission reported that losses from gift and prepaid card scams totaled over $212 million, and the number of scams continues to rise. The FTC has a website that explains how gift card scams work, the common types of scams, and what to do if you think you’ve been scammed.

There are also several things you can do to protect yourself. It’s convenient to buy a gift card from a retail store, but if you can avoid it, you minimize your risk. Many stores allow you to buy gift cards online, which requires you to send an email address for the recipient, and the store sends a redemption code that the recipient can use when making a purchase. Don’t buy from online auctions, since the cards could be stolen. Buy directly when you can–Apple sells gift cards online.

But sometimes you can’t avoid buying a gift card from a store. If you need to, there are a few things you can do to minimize your risk. The FTC recommends the following:

• Stick to stores you know and trust. Avoid buying from online auction sites because the gift cards may be fake or stolen.
• Inspect the gift card before you buy it. Make sure the protective stickers are on the card and that it doesn’t look like someone tampered with them. Also check that the PIN number on the back isn’t showing. Pick a different gift card if you spot a problem and show the tampered card to a cashier or manager.
• Always keep a copy of the gift card and store receipt. Take a picture of the gift card and store receipt with your phone. The number on the gift card and store receipt will help you file a report with the gift card company if you lose the gift card or if you need to report fraud.

Federal Trade Comission