A 24-Year-Old Scammed Apple 42 Times In 16 Different States
redletterdave (2493036) writes "Sharron Laverne Parrish Jr., 24, allegedly scammed Apple not once, but 42 times, cheating the company out of more than $300,000 — and his scam was breathtakingly simple. According to a Secret Service criminal complaint, Parrish allegedly visited Apple Stores and tried to buy products with four different debit cards, which were all closed by his respective financial institutions. When his debit card was inevitably declined by the Apple Store, he would protest and offer to call his bank — except, he wasn't really calling his bank. So he would allegedly offer the Apple Store employees a fake authorization code with a certain number of digits, which is normally provided by credit card issuers to create a record of the credit or debit override. But that's the problem with this system: as long as the number of digits is correct, the override code itself doesn't matter."
Who the hell came up with that idea?
That's no security in any meaningful sense of the word.
I'm betting some lobbyist made it so that the banks didn't really need to do anything concrete, just look like they were.
If that's all that's required, the banks deserve to be getting ripped off.
Lost at C:>. Found at C.
It might have been 300k retail sales but it only cost Apple 500 bucks.
That's over $7142.85 per "scam". How the fuck do you spend that much money at a fucking Apple store?!
Chuuch. Preach. Tabernacle.
Once upon a time, the retailer would have to take the blame for this because it is the retailer who is supposed to make the call to the financial institution on the retailer's own phone line, not using the cardholder's phone or trusting the cardholder's ability to dial the number.
Unfortunately, the retailers are successfully using the police to cover for the incompetence of their staff.
No sig. Move along - nothing to see here.
Presumably he was treating it as a source of income rather than a source of Apple hardware.
No kidding!!! What do you say at this point?
Because.... 42?
Get free satoshi (Bitcoin) and Dogecoins
Have you never been to an Apple store? They charge $20 for a freaking USB to iPod cable. Think different (like everyone else).
From TFA:
>> merchants can be liable for charges if they override a credit or debit card denial in this fashion
>> In (another) case...after defrauding Victoria’s Secret, Banana Republic, and several other retailers out of $557,690 in the same manner, which is known as a “forced sale” or “forced code.”
I think the operational problem here is that store managers have the authority to override denials to boost their own sales numbers...while the risk for bad credit decisions may fall on the owners.
So the ultimate question to life and everything is: "How many times was Apple ripped off by an single individual?"
Does the fact that the guy was 24 have any bearing on the story what-so-ever? Why not say "scam artist" or something more generic?
"Ignorance more frequently begets confidence than does knowledge"
- Charles Darwin
Don't forget the free sex!
Guns don't kill people; Physics kills people! - John Lithgow as Dick Solomon on Third Rock From The Sun
1: The clerk is the one that should be calling for an approval code, and the call is made not to the cardholder's bank but rather to the bank that processes the cards for the retail store. It doesn't matter what the customer's bank says (or in this case the fake bank) since the approval/authorization code must come from the retailer's bankcard processor.
2: At my store a manager override is required to "force" a bankcard approval. So even if the clerk makes the call and gets a voice approval code a manager/owner must also provide a password to allow the approval to go through. Apparently Apple has no such security check in place and clerks tan type a manual code into the POS system to force the sale to go through.
Amazingly simple scam, but also amazingly simple to prevent if the stores involved had even rudimentary procedures in place.
"We make our world significant by the courage of our questions and by the depth of our answers." Carl Sagan
I worked retail for a long time, including an Apple Store. I cannot remember the policies at Apple when I was working there, but most places will not take a verbal approval code.
If the person on the other end of the phone (generally you get to them by calling the 800 number on the back of the card) has the ability to run the transaction, they have the ability to clear whatever prevented the card from going through the first time. They would have to - they have to clear the hurdle before they can run the transaction themselves.
So policy at most places is that the telephone operator clears the issue (usually it is a daily spending limit that card issuers never mention) and then the store runs the card again. There was no procedure for manually entering a verbal approval code.
My memory of Apple Retail (this was '04-'06), however, is that they had almost every contingency covered. The POS machines all had USB modems attached so that in case the Internet went down at the store, credit cards could still be processed. We even had the old CH-CHUNK imprint devices when everything went pear-shaped. I do seem to remember having the ability to enter a manual authorization code for a credit card transaction. It is Apple Retail - there are supposed to be no hurdles keeping a Specialist from keeping a customer happy.
- (c) 2018 Hank Zimmerman
It sounds like the real scammers are the credit card issues that have a system in place to override that has ZERO security in place.
The security is supposed to be that the retailer is supposed to call the bank themselves to verify it. Which they didn't do.
GLaDOS for President 2016! "Well here we are again. It's always such a pleasure." -- GLaDOS, 2011
Should I assume his parents REALLY wanted a girl?
Don't worry. He's called the parole board and says that they said he should be released as per override code number 12345.
My sci-fi novel, Ghost Thief, is now available from Amazon.com.
pretty terrible comment there. but if he was African american, then that explains his name. there's a whole chapter on that in Freakonomics.
Remember kids, if you're not paying for the service, YOU ARE THE PRODUCT THAT IS BEING SOLD.
"Hey, I'm actually supposed to be getting *out* of prison today, so..."
"You're in the wrong line, dumbass!"
You only read about the crooks that get caught so naturally you would conclude that crooks are stupid. The smart ones go completely undetected, the slightly less smart ones are never identified but the crime is detected The brilliant ones have enough money and lawyers to make their crime unprosecutable