Apple has begun using a new tool in its stores that can scan an iPhone inside its sealed box and run diagnostics to confirm the device is intact, a move aimed squarely at a growing wave of return fraud.

The technology is believed to already be live in Apple stores in Australia following a rollout earlier this month, and carriers and major retailers could eventually get access to it, according to Bloomberg.

How The Scam Works

Return fraud has become a costly problem for Apple and its retail partners. Some buyers of new devices have reportedly removed accessories, stripped components from handsets and, in some cases, swapped a new iPhone for an old device before returning the box. The stolen parts are then on sold through black market channels.

Apple management has tried to counter this by having staff open even sealed boxes to check their contents, Bloomberg reports. The catch is that once packaging has been opened, an otherwise sellable product can require additional processing before it can be sold as new.

Checking Without Opening

The new scanner removes that friction. Store employees can run diagnostics on a returned iPhone without disturbing the packaging, which matters most when a customer has simply changed their mind and the product needs to be inspected before it goes back on the shelf.

Apple has not publicly detailed the tool’s full technical capabilities or specified exactly which faults it can detect.

Built On Presto

The scanner is built on Apple’s Presto technology, which can also update an iPhone to the latest operating system while it is still sealed in the box, so customers no longer need to download a software update after unboxing.

When activated, the system can also personalise the initial setup, displaying the customer’s name after the familiar “Hello” greeting when the iPhone is switched on for the first time.

The software is designed to work with Apple’s new Duo foldable.

A Theft Problem Close To Home

The rollout is likely to be welcomed by Australian retailers and carriers. Consumer electronics stores, particularly in Victoria, have been hit by high rates of in-store theft, and the scanner offers one way to cut component theft while giving staff an easy way to update devices without opening or damaging packaging.

For now, the deployment is focused on Apple’s own stores, with the devices potentially set to be made available to partners in the future.