BBB Warns Consumers About iPhone Rip-offs

10/2/2008

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DAYTON, OHIO, October 2, 2008 - Within three days of its release, Apple sold one million iPhone 3Gs. Such widespread excitement over a product means scammers have a new opportunity to rip-off unsuspecting consumers. Your Better Business Bureau is providing advice on how you can protect yourself from schemes associated with this product.

"When it comes to hot, new technology that has everyone buzzing, people can get caught up in the craze and let their common sense lapse," said John North, BBB president and CEO. "The latest example is this summer’s introduction of the new iPhone. While consumers are scrambling to get their hands on one, scammers are taking advantage of the opportunity to get their hands on consumers’ money."

Your BBB wants you to be aware of the following ways you could be ripped off:

Shopping with Unauthorized Sellers

Some eager shoppers decided to avoid lines outside Apple and AT&T stores and tried buying iPhones online. Unfortunately, many were fooled by scammers who had set up Web sites posing as legitimate retailers, brokers and resellers or posted ads online at classified sites such as Craigslist. Typically, victims were asked to wire payment to scammers, and of course, the iPhones never arrived. In a worse case scenario, the NYPD recently busted a ring of crooks placing ads on Craigslist for iPhones. When buyers arrived to complete transactions, they were robbed, ending up with no iPhones and no money.

Effective September 7, electronics retailer, Best Buy, will be selling iPhones, providing customers with a third outlet for purchase, in addition to Apple and AT&T stores. Your BBB advises you to purchase new iPhone 3Gs only at authorized stores and never wire money as payment when shopping online for a secondhand iPhone.

Jailbreak Leads to Heartache

The iPhone was released exclusively for use with Apple-designated software and AT&T as the wireless provider. However, hackers have figured out ways to jailbreak or unlock iPhones, enabling them to use software unauthorized by Apple or run on wireless networks other than AT&T.

Your BBB has received complaints from iPhone users who entrusted Web sites selling software to supposedly jailbreak or unlock their phones. Complainants state despite promises and satisfaction guarantees, they never got their money back. Your BBB advises hacking into an iPhone and installing unauthorized programs is extremely risky and could seriously damage the product or void the warranty, leaving you with a worthless, but expensive, piece of broken hardware.

Apps Mishaps

One new feature introduced for the iPhone 3G, as well as the new iPod Touch, is the option to install applications or Apps. Apps are small programs that perform specific functions, such as tracking sports scores or enabling the use of games, users can upload to their devices. Apps have proven to be extremely popular and, while some are available for free, Apple sold more than $30 million worth of Apps in the first month alone after introduction.

The Apps Store in iTunes (http://www.apple.com/itunes/) is the only authorized distributor of Apps, but that hasn’t stopped a legion of Web sites from cropping up, promising to sell Apps at discounted prices. Your BBB strongly advises you to stay away from Web sites promising Apps deals as these sites are most likely phony, set up only to take your money and offer nothing in return. They could potentially be sites that install viruses or malware onto computers for identity theft purposes.

Contact your Better Business Bureau for more advice on how to avoid getting ripped off when going after the latest technology. Visit www.bbb.org or call (937) 222-5825 or (800) 776-5301.

About Your BBB Serving Dayton and the Miami Valley

Your BBB is an unbiased nonprofit organization that sets and upholds high standards for fair and honest business behavior. Businesses earning BBB Accreditation contractually agree and adhere to the organization’s high standards of ethical business behavior. Your BBB provides objective advice, free business BBB Reliability ReportsTM and charity BBB Wise Giving ReportsTM and educational information on topics affecting marketplace trust. To further promote trust, your BBB also offers complaint and dispute resolution support for consumers and businesses when there is difference in viewpoints. The first BBB was founded in 1912. Today, 126 BBBs serve communities across the U.S. and Canada, evaluating and monitoring nearly 4 million local and national businesses and charities. Your BBB serving Dayton and the Miami Valley serves Montgomery, Greene, Clark, Darke, Miami, Preble, Shelby and northern Warren counties. Please visit www.bbb.org for more information about your BBB.

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