Apple Thanks Man Charged With Defrauding Them Of $2.5M, Reason Remains Unclear: Report

In a surprising turn of events, Apple Inc. AAPL reportedly thanked a man charged with defrauding the company of approximately $2.5 million worth of gift cards and products.

What Happened: Noah Roskin-Frazee, a San Francisco resident, was publicly acknowledged by Apple in a security update on Jan. 22, two weeks after his arrest, reported Business Insider. The reason behind Apple’s acknowledgment remains unclear.

According to CourtWatch and 404 Media report, Roskin-Frazee, a security researcher, had previously reported issues to Apple. The indictment, filed in December, charged Roskin-Frazee and a co-defendant with counts including fraud and intentionally damaging a protected computer.

Apple is yet to respond to Benzinga's request for comment.

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The indictment details an intricate scheme in which Roskin-Frazee and his co-defendant used a password reset function to break into an employee’s account. They altered orders for items such as gift cards and devices, sometimes reducing the orders to $0 or having gift cards sent to fake addresses, which they subsequently resold.

Despite Apple not being explicitly named in the indictment, CourtWatch and 404 Media note that the company is headquartered in Cupertino, California, and is involved in the development, manufacture, licensing, support, and sale of computer software, consumer electronics, personal computers, and services.

Why It Matters: This is not the first time an Apple employee has been involved in fraudulent activities. In April, a former Apple employee was sentenced to prison for stealing approximately $17 million from the company through wire fraud. Another former Apple employee of Indian origin was also sentenced to three years in prison and ordered to pay over $19 million for conspiring to defraud the tech giant and related tax crimes.

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Photo by Jimmy Jin on Unsplash