Foxconn Investigating Alleged $43 Million iPhone Fraud

Workers in Apple manufacturing plants built iPhones.

Key Apple manufacturer Foxconn said it has launched a fraud investigation regarding alleged misuse of Apple components. It is looking into claims that employees helped sell iPhones containing defective parts (via Tawain News).

Foxconn factory

Foxconn Staff Said to Have Supplied Defective Parts

The crime ring allegedly involved a Taiwanese businessman and Foxconn employees at the firm’s Zhengzhou facility. The rejected parts had been set aside and meant to be destroyed. However, factory staff are said to have supplied them to be used to fraudulently sell iPhones. Those involved in the alleged scam made the equivalent of $43 million. It is understood the issue was reported to Apple (via 9to5Mac).

In a statement, Foxconn confirmed the lunch of the internal investigation in a statement. Furthermore, Terry Gou, the firm’s former chairman said that “unreasonable things may happen to one or two workers”.

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