Apple Stores Roll Out iPhone Box Scanner to Curb Return Fraud

Apple has begun equipping its retail stores with a device that can scan a sealed iPhone box and run diagnostics on the phone inside, according to Bloomberg's Mark Gurman. The tool is meant to catch returns where the box no longer holds everything it should, without anyone having to break the seal.

Writing in his Power On newsletter, Gurman said Apple is dealing with a growing problem. Some people buy an iPhone or another product, then remove accessories from the box, open the device and take out components, or remove the entire device. They then bring the box back for a refund, hoping the employee will not notice that something is missing.

How the check works

Until now, retail employees have ordinarily been instructed to open the box and verify the contents whenever a customer wants to return an iPhone. The new device changes that routine. According to Gurman, it can "scan an in-box iPhone and run diagnostics on it to make sure the phone is fully intact," leaving the box sealed and able to be put back into inventory.

Apple began rolling the device out to stores earlier this month, Gurman said.

Why it matters

The main benefit for Apple is less wasted inventory. A returned box that has been opened generally cannot go straight back on the shelf as a new product, while a box that stays sealed after a successful scan can. Catching tampered boxes at the counter also helps ensure that incomplete or emptied packages are not treated as valid returns.

For customers, the change will mostly happen behind the counter. Honest returns of an untouched iPhone should simply pass the scan, while boxes that have been stripped of parts or of the phone itself are more likely to be flagged.

The report does not say how many stores already have the scanner or whether Apple plans to use similar checks for products other than the iPhone. Gurman's description suggests the rollout is still in its early stages, having started only this month.