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Class action lawsuit allowed to proceed

Apple gift card scams are one of the most common tactics of scammers impersonating the IRS, and a judge has now agreed with a group of victims who argue that Apple benefits from these scams, and ought to do more to help.

The scam victims filed a class action lawsuit alleging that Apple profits from the fraudulently obtained cards, and is in a position to block the use of them and refund purchasers. Apple asked for the case to be dismissed, a motion which has now been denied …

How Apple gift card scams work

A typical Apple gift card scan works like this. A victim receives a phone call from someone claiming to work for the Internal Revenue Service (IRS). They are told that there is a problem with their tax filing, and that unless the matter is resolved immediately, they face arrest. When asked how to arrange payment, victims are asked to buy Apple gift cards (either Store or iTunes cards), and then pass the details to the caller.

This ought to clearly signal that it’s a scam: The IRS would of course never demand payment via gift cards. However, some people are so panicked that they are taken in by the scam and buy the cards.

What happens next depends on the type of card. With store cards, the scammers usually buy high-value products like laptops and smartphones, which are then sold. iTunes gift card scams usually work in a slightly different way, typically being used to buy paid apps owned by the scammers, so they receive 70% or 85% of the money when paid by…

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